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Tax Rules

Open in Nocthink

Module: Accounting · URL: /accounting/tax-rules · Responsible role: F.A.T Manager · Also used by: Accounting Staff (install the pack and submit versions — accounting.create), Owner/Director (full)

Tax Rules — Install Indonesia pack button, the warning that pack versions arrive as drafts with citations, and the empty state "No tax rules yet. Install the Indonesia pack to start."

Screenshot: Sarah Hall (Finance Manager, also holds the F.A.T Manager role), Nocthink Demo Institute demo data. The demo tenant has not installed a tax pack, so no rules are listed.

Why I use this page

Tax Rules holds the versioned, effective-dated rules the deterministic tax engine uses to calculate PPN and withholding (Indonesia: PPh 23, PPh 4(2), PPh 26; United States: backup withholding and NRA withholding) on AI tax determinations and invoices. The AI never supplies rates — it only picks a rule; the rate, base and rounding come from an approved version here. As F.A.T Manager I approve each version after a colleague has checked it against the regulation, and I retire versions when the law changes. I come here when we start using the AI tax features, and whenever a regulation changes.

What's on the screen

  • Header — Tax Rules with the explanation that a version calculates only after its golden tests pass, one person submits it and a different person approves it; one Install … pack button per country pack this organization may install (only its own country once Country is set in Settings → Nonprofit; every pack while it is blank).
  • Info notice (only while the organization has no country set) — every pack is offered; set the country to see only your own and keep other countries' rules out of AI tax suggestions.
  • Warning notice — "Pack versions arrive as drafts with citations. A tax specialist must check each against the primary source (rate, base, effective date, rounding) before submitting."
  • Empty state — "No tax rules yet. Install your country's pack to start."
  • One section per rule once installed — title is the rule name (e.g. "PPN — standard delivery of non-luxury goods/services", "PPh 23 — services and rent (other than land/buildings)", "PPh Final 4(2) — rent of land and/or buildings", "PPh 26 — payments to non-residents (no treaty relief)", "Backup withholding — reportable payments without a valid TIN", "NRA withholding — U.S.-source FDAP income paid to a foreign person (no treaty relief)"); subtitle shows code (e.g. ID.PPH23.SERVICES, US.BWH.3406), tax type, jurisdiction and either "vN in force today" or "no approved version in force".
  • Version table per rule:
    • Version (v1, v2 …)
    • Effective — from date to end date, or "open".
    • Source — the regulation citation, notes, and a Primary source link.
    • Tests — number of golden test vectors.
    • Status — Draft, In review, Approved, Retired.
    • Action — Submit for approval (Draft), Approve (second person) (In review), Retire (Approved).

How I …

How I install my country's pack

  1. Click Install Indonesia pack or Install United States (federal) pack.
  2. The pack's rules are created with all their versions as Draft, each with citations and test vectors — four Indonesian rules (PPN, PPh 23, PPh 4(2), PPh 26) or two U.S. federal rules (backup withholding 24%, NRA withholding 30%).
  3. Installing again does not duplicate anything — rules that already have versions are skipped.

How I get a version checked and submitted (Accounting Staff or tax specialist)

  1. Open the Primary source link and compare the version's rate, base, effective dates and rounding with the regulation; read the notes.
  2. If it matches, click Submit for approval.
  3. The server re-runs every golden test vector. If any fails, submission is refused ("Golden test vectors fail."); a version with no test vectors cannot be submitted.
  4. The version moves to In review, and the person who submitted is recorded as the reviewer.

How I approve a version (F.A.T Manager)

  1. Find the version marked In review.
  2. Confirm the citation and effective window myself.
  3. Click Approve (second person).
  4. The server checks I am neither the author nor the reviewer, re-runs the tests, and refuses if another approved version of the same rule overlaps the period.
  5. The rule subtitle changes to "vN in force today" once its window covers today.

How I retire a version

  1. On an Approved version, click Retire.
  2. Type the reason in the browser prompt ("Why retire this version?") and confirm — at least 3 characters.
  3. The status becomes Retired and the reason is appended to its notes. Retire the old version before approving a new one for an overlapping period.

Access & permissions

  • Visible to anyone with accounting.view (Accounting menu).
  • Installing the pack and Submit for approval need accounting.create (Accounting Staff, F.A.T Manager).
  • Approve (second person) and Retire need accounting.approve (F.A.T Manager, Owner/Director).
  • Segregation of duties is enforced on the server: the approver must be a different person from the author and the submitter. Every install, submit, approve and retire is written to the audit log.

Caveats

  • Pack versions are drafts. Nothing calculates until a version is approved, so tax determinations in the AI Workbench need at least one approved version per rule they use; with no rules at all, AI tax drafting fails with "Install a tax rule pack first."
  • Two packs exist: Indonesia (id) and United States federal (us). Once the organization's country is set, installing another country's pack is refused, and rules from another country never reach AI tax suggestions.
  • Approved versions cannot overlap in time for the same rule.
  • Retire takes effect immediately and cannot be undone from the page.
  • Amounts in test vectors and calculations are in minor units of the base currency (rupiah ×100, or U.S. cents); rates and rounding come only from the rule definition.

Limitations

  • No form to create a new version or edit a definition, test vectors or effective dates on this page; the API supports creating versions, but the page only shows install, submit, approve and retire.
  • No way to view the rule definition or test vector details here — only the count.
  • No reject action for an In review version; it can only be approved (or left).
  • No jurisdictions other than Indonesia and U.S. federal. The U.S. pack has no state taxes, payroll withholding, UBIT, or the 14% rate for F/J/M/Q scholarship recipients.
  • AI Workbench — tax determinations and invoice withholding use these rules.
  • AI Evaluation — evaluation runs for tax determinations use our approved rules.
  • Supplier Bills — bills where withholding is applied.
  • Payments — payments net of withholding.