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R12.1.3: Tax, Legal and Regulatory Updates

Posted by Lee Briggs

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Apr 7, 2011 1:14:56 PM

R12.1.3 has been released for some time now. BizTech has compiled a list of the Tax, Legal and Regulatory updates that have been added, amended, or removed in this latest release.

Argentina: Support for Argentina Simplified Regime (Monotributo)

The Argentine Fiscal Authority (Resolution 2616), introduced a new Withholding Regime for Income Tax and VAT application to Simplified Regime Contributors (a.k.a. Monotributista). Effective January 1, 2010, the new regime is effective on any payment made to a Monotributista that has reached an annual threshold-billing amount as pre- defined by the government.

With these changes, users now can:

  • Identify suppliers who are Monotributistas
  • Verify supplier’s billing information against fiscal authority thresholds
  • Analyze information through the Monotributistas Billing vs. Threshold Verification Report
  • Automatically enable Simplified Regime applicability to Monotributistas that meet the threshold.

This update has also been back-ported to the following releases:

Release Patch Number Oracle Support Document
11.5.10 8971151
R12.0.5 9112951:R12.JL.A 987131.1
R12.1.1/R12.1.2 9112951:R12.JL.B 987131.1
Belgium: Annual VAT Report File Format v1.3

Effective from January 2010, the new v1.3 file format has replaced the current v1.2 file format of the Belgian Annual VAT Return File.

This update has also been back-ported to the following releases:

Release Patch Number
11.5.10 9249589
R12.0.5 9480859:R12.JE.A
R12.1.1/R12.1.2 9480859:R12.JE.A
Brazil: Support for Brazilian Electronic Collection Document Process (DDA)

Effective October 2009, Oracle Financials for Latin America introduced two new attributes in the Collection Document Window and in the Import Collection Documents program to support the Brazilian Authorized Direct Debit (DDA) system:

  • Collection Document Barcode: The Collection Document Barcode is required for the Electronic File Transfer. This mandatory record speeds up the data entry of manually collected documents, and is now a required field in the Standard Collection Document.
  • Electronic Collection Document flag: The Electronic Format (Y/N) flag identifies if the respective collection document is electronic (Y) or standard (N).

This update has also been back-ported to the following releases:

Release Patch Number Oracle Support Document
11.5.10 8802352 1071872.1
R12.0.5 9319746: R12.JL.A 987749.1
R12.1.1/R12.1.2 9319746: R12.JL.B 987749.1
China: Support for Version 2 of the China Accounting Software Data Interface Standard

The China National Audit Office (CNAO) has defined a new version of their accounting auditing filing standard, known as the China Accounting Software Data Interface Standard. The new standard requires a number of XML-based reports, using data primarily from the General Ledger, Payables, Receivables, Assets, and Payroll modules. It is currently required for state-owned enterprises and public sector organizations.

India: Enhanced Value Added Tax (VAT) Functionality to Support Flexible Recovery Schedule for India

Oracle Financials for India now provides the flexibility to use VAT recovery schedules and percentages to derive the tax installments and dates to claim or recover VAT on capital goods.

India: Value Added Tax (VAT) Statutory Accounting and Reporting for Non-Shippable Items

Users can now have the ability to generate Value Added Tax Invoice Numbers, perform VAT Repository updates, and account for VAT taxes for customer billable non-shippable items on sales orders.

Israel: Israel VAT Report Enhancement

Effective January 2010, new legislation was introduced affecting companies issuing periodic VAT declarations in Israel. The legislative changes include:

  • Enhanced tax reporting boxes for declared input and output taxes
  • New electronic flat file format declaration related to 835
  • Aggregated reporting of taxable sales transactions below the official published limits
  • Monthly percentage or amounts limits for tax reclaimed on Petty Cash transactions
  • Mandatory declaration of export trade transactions (Rshimon Export)

The EMEA VAT Reporting Setup has been updated to capture monthly aggregation and declaration limits for Israel.

The following Israeli reports have been enhanced to incorporate the legislative changes

  • Israeli VAT AR Detail report
  • Israeli VAT AP Detail report
  • Israeli VAT Summary Declaration to Tax Authorities
  • Israeli VAT File Generation Related to 835

This update has also been back-ported to the following releases:

Release Patch Number Oracle Support Document
R12.0.6 9241039:R12.JE.A 981126.1
R12.1.1/R12.1.2 9241039:R12.JE.B 981126.1
Israeli: Withholding Tax File – 856

Legislative amendments to the Income Tax Ordinance require updates to the ‘Withholding Tax File – 856’. These amendments impact the existing ‘Israeli Withholding Tax File to Tax Authority’ report.

In summary, the amendments are as follows:

  • The existing Row 60 has been updated. New fields ‘Tax Year’, ‘Supplier Type’ and ‘Explanation for the Tax File in IRS’ have been added to this row.
  • The existing Row 70 has been updated. New fields ‘Foreign Suppliers Total Payments Paid by Bank’ and ‘Foreign Suppliers Total Withhold Amounts Paid by Bank’ have been added to this row. Positions 53 to 101 are filled out with spaces.
  • A new row (Row 80) has been added to the file. This row has 216 positions and is composed of 12 lines, one line for each month of the year.

The following data is also generated as part of row 80:

  • IRS Deduction File Number, Reporting Type Code, Tax Year, Period, Number of Reported Suppliers, Total Payments, Total Withholding Tax, 155 spaces and the constant ‘80’.

This update has also been back-ported to the following releases:

Release Patch Number
R12.0.5 92536066:R12.JE.A
R12.1.1/R12.1.2 92536066:R12.JE.B
Asset Impairment for Japan Tax Reform 2007

As defined by previous regulatory initiatives in Japan and the Japan Tax Reform of 2007, the impairment functionality in Oracle Assets has been extended to perform and account for asset impairments in compliance with Japanese accounting regulations. Impairment losses can now be derived and recorded for Japan-specific depreciation methods.

The following impairment feature functionality is now available for Japan depreciation methods

  • Japan specific impairment loss calculations
  • Assignment and impairment of asset
  • Impairment of fully reserve and non-depreciating assets
  • Impairment of assets exceeding depreciating limits
U.S. Federal: Extract File Changes for Central Contractor Registration (CCR)

CCR processing has been enhanced to process the BPN extract v4.09 files. The extracts contain additional NAICS information, as well as the Excluded Parties List System (EPLS) status. The CCRXML request version number has been updated to 2.10. The CCR Vendors pages have also been updated to display the additional information.

U.S. Federal: Regulatory Updates to Statement of Budgetary Resources

The setup and concurrent process for the following Federal Financial Statements have been modified to align with the OMB Circular A-136 Revised (dated June 10, 2009) as well as USSGL Fiscal Year 2010 crosswalk attributes:

  • Statement of Budgetary Resources
  • Statement of Changes in Net Position
U.S. Federal: Regulatory Updates to SF-133 Report

The setup and concurrent process for the SF 133, Report on Budget Execution, has been modified to align with OMB Circular A-136 Revised (dated June 10, 2009) as well as USSGL Fiscal Year 2010 crosswalk attributes.

This update has also been back-ported to the following releases:

Release Patch Number Oracle Support Document
11.5.10 9307464 979828.1
R12.0 9162915:R12.FV.A 979828.1
R12.1.1/R12.1.2 9162915:R12.FV.B 979828.1
Global: European Community VAT Changes for 2010

Effective January 1, 2010, the European Union (EU) introduced changes related to Value Added Tax (VAT) to modernize and simplify the rules for cross-border supply services and tax recovery. Business-to-business supply of services will now no longer be taxed where the supplier is located but will be taxed where the customer is situated. The changes also introduced new reporting requirements.

Oracle Financials has been enhanced to address the new VAT changes by providing the following features:

  • Identify the intra EU service transaction lines and display them on the European Sales Listing report
  • Print standard legal messages on sales invoices.

This update has also been back-ported to the following releases:

Release Patch Number Oracle Support Document
R12.0 9337544:R12.ZX.A9123675:R12.BPA.A 974979.11107453.1
R12.1 9337544:R12.ZX.A9123675:R12.BPA.A 974979.11107453.1

R12.1.3: New Functionality Added for Financials for India

Descriptive Flexfield Support

Users can now capture customer specific data using descriptive flexfields within Oracle Financials for India. The data is stored and available within the OFI tables

Display of Value Added Tax (VAT) Invoice Number in Receivables Transaction Workbench for India

The VAT Invoice number is now displayed within the reference field of Receivables Transaction Workbench. This simplifies the process of matching receipt of payments against a VAT invoice.

General Ledger Drilldown Support

Users can now drilldown from General Ledger to transactions for the accounting entries generated by Oracle Financials for India.

Topics: E-Business Suite, Oracle Application Services