Calculate After Tax Adjusted Performance Results

You can use the Performance Returns report to present "after tax" performance results.

You can display country and regional tax rates (for the USA, Federal and state tax rates) in reports and can calculate returns net of country and regional taxes. You can create reports that apply the entity's (country or regional) tax rate at the security level for Performance Returns reports; the report uses the country or region associated with the portfolio entity to determine the appropriate tax rate.

To set up and maintain data needed to present after tax performance results, you:

Set up and maintain the country and/or region of entities for which you plan to report on tax rates
Create an Advanced tax field that identifies the type of tax rate you plan to use for after tax calculations and the location of the tax rate data
Set up and maintain tax rates for countries and regions
Create an Entity Tax Rate field that determines whether to use the country or region tax rate, and identifies the tax type to use for calculations
Set up the Performance Calculation Report Rule to include fields that calculate and display information related to tax rates

On this page

1 Maintain Tax Locale Information for Entities
2 Create a Tax Type for Tax Rates
3 Configure Countries and Regions for Tax Rates

Eagle provides a specialized set of guidelines for setting up tax rates and using them in Retail Fund reports. For details, along with a description of the columns in the TAX_RATE table in the PACE_MASTER database, see the Retail Fund Performance User Guide.

Maintain Tax Locale Information for Entities

The Performance Calculation report can identify the appropriate tax rate to apply to a portfolio or composite-type entity based on country and/or region information you store at the entity level.
To calculate after tax performance results, set up the following information for your entities:

In the ENTITY table in the RULES database, ensure that you maintain a tax country for each entity, and maintain a tax region for each entity, if you plan to report on tax rates at a regional level.
Create an Entity field attribute that identifies the field where you store the tax country for entities.
Create an Entity field attribute that identifies the field where you store the tax region for entities, if you plan to report on tax rates at a regional level.

Create a Tax Type for Tax Rates

For each type of tax you plan to use in after tax calculations, create an Advanced tax field that identifies the tax type and provides the location where you store the tax rate. For example, if you maintain several types of tax rates at the country or regional level that you plan to use for after tax calculations, you define each of those tax type categories with a tax field. A sample field for a regional short term capital gains tax is shown in the following figure.

To create an Advanced tax field that identifies a tax type for use in after tax calculations:

From any Eagle window, click the Eagle Navigator button to access the Eagle Navigator.
Enter Reporting in the Start Search text box and click the General Reporting (Performance Center) link.
You see the Performance Center with the General Reporting workspace.
Select the Components tab.
Expand Fields, select the Tax folder, and click New.
The New Regular Field dialog box appears.
In the list box above the attributes, change Regular Field to Advanced Field.
The name of the dialog box changes to New Advanced Field.
In the Name field, enter the name of the tax type used to classify tax rates.
The previous figure shows a sample Advanced tax field. For example, if you plan to maintain tax rates for short term capital gains tax at the regional level, assign the tax field a name of Regional Short Term CG Tax.
For the Database, Table, and Column attributes, enter the location where you store tax rates.
You store tax rates in the PACE_MASTER database, in the TAX_RATES table, in the TAX_RATE column.
Set Process to Tax Rate Fetch, and set Field Indicator to Tax Rate.
You can now create tax rates associated with a tax type that has the name of your Advanced tax field. For example, you can now create tax rates with a tax type of Regional Short Term CG Tax.

Configure Countries and Regions for Tax Rates

Each tax rate record that you create has a unique combination of country, region, effective date, and tax rate. Before you create tax rates, perform the following tasks to configure the countries and regions you plan to associate with tax rate information:

Identify the code list or lists you use to identify regions within countries for tax rate purposes. You can use a single code list that includes regions associated with many countries or can use multiple code lists that include regions for a single country.

When you set up a code list that identifies regions, be sure to add a code value with a short description of DEFAULT to the list. Eagle Performance uses the DEFAULT code value as an "all regions" entry when you create tax rates. For example, if you want to define a country level tax rate for France, you choose a country code value for France and a region code value of DEFAULT. If you want to define a region level tax rate for France, you choose a country code value for France and a region code value for a specific region within France. Every region code list you use with tax rates must include a DEFAULT entry.

For each country you plan to associate with tax rates, use the Configure option in the Tax Rates window to associate the country with the specific code list that describes regions that pertain to that country. If you are tracking no regions for a particular country, you can associate that country with a regions code list that includes the DEFAULT entry.

These configuration tasks affect the country/region combinations you can select when you create individual tax rates.

To configure countries and regions for use in after tax calculations:

From any Eagle window, click the Eagle Navigator button to access the Eagle Navigator.
Enter Tax Rates in the Start Search text box and click the Tax Rates (Performance Center) link.
You see the Performance Center with the Tax Rates workspace open. See the following figure. This workspace displays a row for each tax rate you created associated with the selected country and region. By default, the Country field has a value of All Countries and the Region field has a value of All Regions. If you created no tax rates, no rows appear in this workspace.
Click the Configure link.
The Select Regions dialog box appears. See the following figure.
In the Country column, ensure that the appropriate code list you use to identify countries for tax rate purposes appears.
By default, the system uses an internal currency code list. If the appropriate code list does not appear in the Country column, you can select the appropriate code list in the Countries field, and click OK to display the corresponding list of countries in the Country column.
For each country you plan to associate with tax rates, select a value in the corresponding Regions Category column to identify the code list associated with regions for that country.
The code list you select must contain an entry of DEFAULT used to indicate "all regions" for the corresponding country. If you track tax rate information at the region level for the country, the selected code list can additionally contain entries for each individual region in the country. In the example shown in the previous figure, you set up a single code list for all regions in all countries named "All Region Code" and associate that code list with the US Dollar country, that is, with the country code you use for US tax rates. This allows you to create US tax rates at both the federal and state level.
Click OK to save your changes.