For most in-house tax teams having a centralised, single source of truth for entity and tax data is a great value-add. Loctax's 'All entities' tab provides a comprehensive list of all the entities in your group plus a host of additional, useful features.
💡Pro tip: if a custom user role is selected - which provides access to a subset of the entities within the group, the user will see 'All entities' renamed to 'Entities' and a list of the entities they have access to only - i.e. not the full list.
Creating a new entity:
Click 'new entity'.
Complete the information in the pop up window. (Tip: to create an entity in Loctax, just 3 data points are required: Entity name, Country of Incorporation & Financial year-end). The remaining fields are optional but will provide a richer database over time if completed.
What else does the 'All entities' tab show and what can I do here?
A single overview of either all entities in the group (Admin/Member/Viewer) or a subset, customised list of entities if a custom user profile is in use.
The country code next to the entity name indicating the country the entity is located in. Example: BE for Belgium, MX for Mexico etc.
The entity status next to the entity name and country of incorporation: Merged/divested/liquidated. Below we see an example:
What does the 'All entities' tab show and what can I do here? (Cont.)
Change the colour of the entity on the Legal Org. Chart. This allows you to colour-code entities by any internal qualifier. Live examples of this feature include colour-coding entities by region, business unit etc.
Set whether the entity's tax is managed by group (yes/no). Toggling this to 'yes' means the entity can be included in compliance workflows and also shows in compliance dashboards.
Select a main responsible person for Corporate Tax, Withholding Tax, Transfer Pricing and VAT/GST. Selecting a main responsible person here allows you to easily assign a single task spanning many entities to the relevant people with one click, instead of having to individually assign the tasks. Example: there are 10 VAT responsible people in our group who all take care of step 2 in a workflow. Simply assign the 'main VAT responsible' and the system automatically pulls the right assignee in.
Adding a child entity, changing an entity status and deleting an entity.
On the right side of the all entities table is an ... ellipsis. Clicking this opens a submenu where further actions can be taken. See below:
'Add child entity' opens a 'create entity' pop up window. Once saved, this newly created entity will appear in the 'all entities' list and will show as 100% owned by the parent by default. This can be edited accordingly.
'Change entity status' allows you to denote whether the entity is divested, inactive, in liquidation, liquidated or merged. Note that a status update may influence your Chart. Liquidated, merged and divested entities will be hidden from the Chart.
'Delete entity' should be used when you want to fully delete an entity from your Loctax environment. As an additional layer of security and to ensure a purposeful deletion, you must type 'DELETE' in the pop up before the entity is deleted. We do not recommend deleting entities who are divested, inactive, in liquidation, liquidated or merged - instead they should have their entity status updated accordingly.