> ## Documentation Index
> Fetch the complete documentation index at: https://integrations.docs.commenda.io/llms.txt
> Use this file to discover all available pages before exploring further.

# Overview

> A Tax Rate is the percentage at which an individual or corporation is taxed.

**The Tax Rates Data Model** is designed to provide a unified representation of tax rates across various accounting platforms.

* Unified tax rate properties: The model unifies essential tax rate details, such as name, code, effective tax rate, and total tax rate, streamlining the handling of tax data from different platforms.
* Tax components support: The data model encompasses an array of individual tax components, enabling the representation of complex tax structures and relationships between components.
* Effective tax rate calculation: The model accounts for the compounding effects of all tax components, providing an accurate effective tax rate for each entry.

### Properties Supported

| Property             | Type                                                                            | Description                                                                               |
| -------------------- | ------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------- |
| platform\_id         | string                                                                          | The Platform's ID for the tax rate                                                        |
| name                 | string                                                                          | Display name                                                                              |
| code                 | string                                                                          | Simple ID for the tax rate                                                                |
| tax\_type            | string                                                                          | The type of tax as mentioned in the accounting platform                                   |
| effective\_tax\_rate | float                                                                           | The total tax rate after accounting for the compounding effects of the all tax components |
| total\_tax\_rate     | float                                                                           | The sum of all the tax rate components                                                    |
| components           | [Tax Component](/api-reference/v3/accounting/tax-rates/overview#tax-components) | An array of all the tax components                                                        |

## Tax Components

**The Tax Components Data Model** complements the Tax Rates Data Model by providing detailed information about individual components of tax rates.

* Essential component properties: The model captures important tax component details, such as name, code, and rate, making it easier to work with tax components from various platforms.
* Compounding effect tracking: The `is_compound` property indicates whether a tax component has a compounding effect on the overall tax rate, allowing for accurate tax rate calculations.
* Seamless integration with Tax Rates Data Model: Tax Components are integrated as part of the Tax Rates Data Model, ensuring a comprehensive representation of tax rate structures and relationships.

### Properties Supported

| Property     | Type    | Description                              |
| ------------ | ------- | ---------------------------------------- |
| name         | string  | Display name                             |
| code         | string  | Simple ID for the tax component          |
| rate         | float   | Tax Rate                                 |
| is\_compound | boolean | If the tax rate has a compounding effect |

<ResponseExample name="The Tax Rates Object">
  ```json The Tax Rates Response Object theme={null}
  {
    "platform_id": "3770712000001298001",
    "name": "Inter State Exchange Taxes",
    "code": "GST",
    "tax_type": "sgst",
    "effective_tax_rate": 18,
    "total_tax_rate": 18,
    "components": [
      {
        "name": "Inter State Exchange Taxes",
        "rate": 18,
        "tax_agency": "igst",
        "is_compound": false
      }
    ],
    "updated_at": "2000-12-31T18:30:00.000Z"
  }
  ```
</ResponseExample>