Eagle Accounting can override the tax rates stored in any of the Tax Rate tables for cash dividends, using a value set at the corporate action announcement level.
Eagle Accounting uses Tax Override Amount (tag 1272), which you can define using the Cash Dividend panel for the corporate action announcement, to store the applicable override tax rate. The value stored in this field represents the tax exempt rate, and is used to reduce the existing tax rate. A value of 100 indicates fully tax-exempt (do not apply any tax withholding or reclaim amounts to the entity), whereas 0 or Null means to treat tax processing as it is done today.
For example, say the Tax Override Amount (that is, Tax Exempt Rate) field at the corporate action level is set to 70, and Withholding/Reclaim rates are 20/5, respectively. To determine the correct withholding and reclaim rates, the formula to use follows.
Withholding = 70% * 20% = 14% Tax Exempt Rate
20% Tax Withholding Rate - 14% Tax Exempt Rate = 6% New Tax Withholding Rate
Tax Reclaim = 70% * 5% = 3.5% Tax Exempt Rate
5% Tax Reclaim Rate - 3.5% Tax Exempt Rate = 1.5% New Tax Reclaim Rate
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