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Finance | Project Operations, Human Resources, ...
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Creating specific Taxes to a non US country

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Posted on by 99

Hello everyone,

I am trying to create specific taxes to Tunisia and i am following (in general) Microsoft AX official step by step configuration (that works on a US example) in which they started by creating Tax regions then Tax codes, and i found out that i can't change the country/region field directly. 
Any ideas on how to tackle this or if there is another procedure to follow to localize payroll and setup different types of taxes?

Thanks in advance.


Tax-region-error-v2.jpg

I have the same question (0)
  • Verified answer
    André Arnaud de Calavon Profile Picture
    301,020 Super User 2025 Season 2 on at

    Hi Fares,

    The payroll is only supported for the US region. There is no localization for Tunesia out of the box.

  • Suggested answer
    Junaid Idrees Profile Picture
    on at

    Hi Fares,

    You cannot change the country/Region because there are many things tied to country. Once of them is D365 license key.

    As Andre suggested you cannot use US payroll in Tunisia. The reason being Tunisia payroll taxation rules are totally different than US.  

  • Fares Ben Miled Profile Picture
    99 on at

    Thanks Junaid Idrees for the clarification,

    so i created a Tunisian organization (new Legal entity) which contains several employees, and after creating their earning codes, how could i generate their pay statements with tunisian taxation without managing the payroll module ? (i am new to D365 and creating a localized pay statement with D365 FO is my internship project)

    I really appreciate any type of help you could provide.

  • Fares Ben Miled Profile Picture
    99 on at

    Thanks André for clearing this out,

    so i created a Tunisian organization (new Legal entity) which contains several employees, and after creating their earning codes, how could i generate their pay statements with tunisian taxation without managing the payroll module ? (i am new to D365 and creating a localized pay statement with D365 FO is my internship project)

    I really appreciate any type of help you could provide.

  • Suggested answer
    Junaid Idrees Profile Picture
    on at

    hi Fares,

    You have to use payroll module default engine to process the payroll as we don't have localized tunisian payroll:

    1. The first thing you should do is to create a high level document & specify all earning codes/deduction codes/benefits codes with all calculations. Do mention all income tax slabs with deduction % used in Tunisia with sample examples.

    For example: Annual Income: 100,000 | Income Tax: 32,000 | Total Deduction: 32,000 | Salary After tax: 68,000

    2. Run Out of the box payroll engine to get an idea how exactly payroll works in D365. Please refer to the below URL to setup payroll:

    docs.microsoft.com/.../noam-usa-worker-position-payroll-tasks  

    3. Refer to below URL to generate payroll:

    dynamics.folio3.com/.../

    4. Once you get an idea about US payroll engine then identify GAPs and areas where exactly you have to do customization. Main area would be earning codes salary calculator and Income tax Slabs.

    Note: Do some R & D if any Microsoft partner in Tunisia has customized local payroll or ISV (ndependent software vendor ) solution.

  • Fares Ben Miled Profile Picture
    99 on at

    Thanks again Junaid Idrees, I will definitely do more research on the matter and with the help of the links you provided, I really appreciate it.

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