- If the base price is tax-inclusive:
- Tax-inclusive final price = Base price x Exchange rate
- Tax amount = [Tax-inclusive final price/(1 + Tax rate)] x Tax rate
Example: Assume that the base price is CNY7.08, CNY-USD exchange rate is 1/7, and tax rate is 10%. The tax-inclusive final price is USD7.08 x 1/7, that is, USD1.0114 and then optimized to USD1.06. The tax amount is [USD1.06/(1 + 10%)] x 10%, that is, USD0.096363 and rounded off to USD0.10.
- If the base price is tax-exclusive:
- Tax-inclusive final price = Base price x Exchange rate x (1 + Tax rate)
- Tax amount = Base price x Exchange rate x Tax rate
Example: Assume that the base price is CNY7, CNY-USD exchange rate is 1/7, and tax rate is 10%. The tax-inclusive final price is USD7 x 1/7 x (1 + 10%), that is, USD1.10. The tax amount is USD7 x 1/7 x 10%, that is USD0.10.
- If the tax amount contains decimal places, it will be rounded off to two decimal places.
- If the tax-inclusive final price contains decimal places, it will be optimized.