Description
Apply tax only when taxOnRelease, then add it to net retention.
Tax-related arithmetic can apply a supplied rate or reverse a gross/net amount. The applicable jurisdiction, taxable event, allowable credit and reporting treatment are separate questions that cannot be established from the formula alone.
Apply tax only when taxOnRelease, then add it to net retention.
When to use this tool
Use Invoice Retention Release Tax Basis when you need a transparent calculation under an explicitly supplied tax convention.
How to use the tool and how it works
- Enter netRetention, taxRate, taxOnRelease. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read tax, releaseGross. Use the output convention below.
Require nonnegative netRetention/taxRate. Apply tax only when taxOnRelease, then add it to net retention.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| netRetention | Net Retention | Required. Finite number; minimum 0. |
| taxRate | Tax Rate | Required. Finite number; minimum 0. |
| taxOnRelease | Tax On Release | Required. Boolean. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| tax | Tax | Required. Finite number. |
| releaseGross | Release Gross | Required. Finite number. |
{
"input": {
"netRetention": 500,
"taxRate": 0.2,
"taxOnRelease": true
},
"output": {
"tax": 100,
"releaseGross": 600
}
}Limitations and assumptions
- Tax rate is a supplied fraction and the flag is caller policy. No jurisdiction, taxable event, legal liability or applicable rate is determined.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Check the applicable tax rules and source documents with the appropriate professional. Keep rate, base, timing, currency and credit eligibility explicit before using the arithmetic for a return or payment.
References
Similar or alternative tools
- Invoice Credit Tax Reversal Base
Divide creditGross by 1+taxRate and return gross-minus-net reversed tax.
- Credit Note Unapplied Tax Balance
Return unapplied credit and original tax minus applied credit.