# Osolix · Multi-Jurisdiction Tax Matrix — v1

**Status:** Wave-B Foundation evidence · 2026-Q2
**Owner:** Finance / Billing + Chief Compliance Officer
**Audit dimensions:** #13 Compliance · #23 Billing · #8 Standards
**Re-attestation:** Quarterly (rates change frequently)

This matrix documents the tax handling Osolix applies on every customer
invoice + every asset acquisition cost, indexed by jurisdiction. Stripe
`tax_behavior=exclusive` is set on every Price; the calculated tax is
collected via Stripe Tax for SaaS B2B + posted to the GL via the ERP
outbox with the matching jurisdiction code.

## 1 · Subscription billing tax handling (Stripe Tax)

| Jurisdiction | Tax type | Rate | B2B reverse-charge? | Filing authority |
|---|---|---|---|---|
| **🇦🇪 UAE** | VAT (Federal Decree-Law 8/2017) | 5 % | Yes (recipient self-assesses; supplier zero-rates if intra-GCC B2B with VAT TRN) | Federal Tax Authority (FTA) |
| **🇸🇦 KSA** | VAT (E-Invoicing Regulation) | 15 % | Yes (B2B with valid TRN) | ZATCA |
| **🇶🇦 Qatar** | None (no consumption tax yet — telecom + tobacco excise only) | — | — | Tax Authority |
| **🇰🇼 Kuwait** | None (no VAT) | — | — | Ministry of Finance |
| **🇧🇭 Bahrain** | VAT | 10 % | Yes | NBR |
| **🇴🇲 Oman** | VAT | 5 % | Yes | Tax Authority |
| **🇪🇬 Egypt** | VAT | 14 % | Yes | ETA |
| **🇬🇧 UK** | VAT | 20 % standard, 5 % / 0 % reduced | Yes (B2B reverse-charge for digital services to VAT-registered) | HMRC |
| **🇪🇺 EU** | VAT | varies (17–27 %) | Yes (digital-services B2B reverse-charge under Art. 196 of VAT Directive 2006/112/EC) | National revenue agencies + OSS |
| **🇺🇸 US** | Sales tax (state-by-state nexus) | varies (0–10.25 %) | No (origin-based for some states) | State Departments of Revenue |
| **🇨🇦 Canada** | GST / HST / QST / PST | 5 % – 15 % | Partial | CRA / Revenu Québec |
| **🇦🇺 Australia** | GST | 10 % | Yes (B2B with ABN) | ATO |
| **🇮🇳 India** | GST | 18 % standard for SaaS | Reverse-charge for cross-border B2B | GSTN |
| **🇿🇦 South Africa** | VAT | 15 % | Yes | SARS |
| **🇸🇬 Singapore** | GST | 9 % | Yes for digital services | IRAS |

## 2 · Asset acquisition cost — capitalisation tax treatment

Osolix's Capitalisation Threshold is per-tenant. Configurable per-jurisdiction defaults:

| Jurisdiction | Standard | Default cap-threshold |
|---|---|---|
| UAE / KSA / GCC | IAS 16 + local CIT regulation | AED 2,000 / SAR 2,000 (small-value expensed) |
| US | IRS §263 + ASC 360 | Any item > $2,500 capitalised (de minimis safe harbor); $5,000 with applicable financial statements |
| UK | HMRC Plant & Machinery + IAS 16 | £200 small-value (MIA) |
| EU | National Tax Code + IAS 16 | varies (Germany €800, France €500, Netherlands €450) |
| India | Income Tax Act §32 + Ind AS 16 | INR 5,000 |
| Australia | Tax Act §40 + AASB 116 | AUD 100 |

## 3 · Depreciation tax method per jurisdiction

| Jurisdiction | Tax method (book often differs) | Notes |
|---|---|---|
| UAE | Straight-line (commercial CIT effective 2023; 9 % rate on profits > AED 375 k) | UAE accepts both SL + DDB for tax. |
| KSA | Declining balance per CIT Article 17 | Specific rates per asset class. |
| US | MACRS (3/5/7/10/15/20-year classes) | Distinct from book SL/DDB. |
| UK | Capital Allowances (WDA + AIA + FYA + structures-and-buildings allowance) | AIA limit £1m. |
| EU | National rules (most allow SL or DDB at fixed rates) | Tax/book differences common. |
| India | WDV / SLM per IT Act schedule II | Differs from Ind AS 16 book method. |
| Australia | Diminishing-value or prime-cost method (taxpayer choice) | Effective life per ATO ruling TR 2024/3. |

## 4 · GL account-mapping defaults

Osolix's `ChartOfAccount` master ships with the following IFRS-aligned defaults
per tenant locale:

| Account category | UAE / GCC / IFRS | US / GAAP |
|---|---|---|
| Land | 1110 | 1110 |
| Buildings | 1120 | 1120 |
| Plant & Machinery | 1140 | 1140 |
| Vehicles | 1150 | 1150 |
| Furniture, Fixtures, Equipment | 1160 | 1160 |
| Computer Hardware | 1170 | 1170 |
| Software (intangible) | 1310 | 1310 |
| Right-of-Use (IFRS 16) | 1180 | n/a (ASC 842 has separate ROU) |
| Lease Liability | 2230 | 2230 |
| Accumulated Depreciation – Buildings | 1121 | 1121 |
| Depreciation Expense – Buildings | 5121 | 5121 |
| Gain/Loss on Disposal | 4910 | 4910 |
| Revaluation Reserve (IAS 16.31) | 3210 | n/a (US GAAP doesn't permit upward revaluation) |
| Impairment Loss (IAS 36 / ASC 360) | 5910 | 5910 |

## 5 · Open items
* Add Switzerland + Israel + Saudi excise to the matrix.
* Wire Stripe Tax Connect for the EU OSS scheme so single-VAT-return is the default for European customers.
* Build per-tenant GL mapping editor UI (currently CSV import only).