Tax Jurisdiction Model: Local Jurisdiction Withholding Improvements
Legal Administrators can now group multiple cities under a single local jurisdiction for tax withholding purposes.
Why is this an improvement?
Issuers now have greater flexibility in capturing jurisdictions where their participants pay taxes, particularly for county-level taxes or jurisdictions that are not specific to countries, states/provinces, or cities.
How does it work?
Navigate to Carta’s Tax jurisdiction and rates table by following Compliance & Tax -Tax Rules-Tax jurisdictions and rates.
Add a jurisdiction below the state or province level and select Multi-Regional Tax Jurisdiction. Enter all of the cities that belong to that jurisdiction.
The jurisdiction is then displayed as Multi-Regional. Any tax rate or rule set for the jurisdiction will apply to all stakeholders with tax addresses containing any of its included cities and will be used to calculate tax withholding for applicable transactions.