Fix incorrect tax rate selected with distance rate

src/components/MoneyRequestConfirmationList.tsx

@@ -25,7 +25,7 @@ import * as MoneyRequestUtils from '@libs/MoneyRequestUtils';
 import Navigation from '@libs/Navigation/Navigation';
 import * as OptionsListUtils from '@libs/OptionsListUtils';
 import * as PolicyUtils from '@libs/PolicyUtils';
-import {isTaxTrackingEnabled} from '@libs/PolicyUtils';
+import {getCustomUnitRate, isTaxTrackingEnabled} from '@libs/PolicyUtils';
 import * as ReceiptUtils from '@libs/ReceiptUtils';
 import * as ReportUtils from '@libs/ReportUtils';
 import {getDefaultWorkspaceAvatar} from '@libs/ReportUtils';
@@ -371,17 +371,21 @@ function MoneyRequestConfirmationList({
             return;
         }
 
-        let taxAmount;
+        let taxableAmount: number;
+        let taxCode: string;
         if (isDistanceRequest) {
-            taxAmount = DistanceRequestUtils.calculateTaxAmount(policy, transaction, TransactionUtils.getRateID(transaction) ?? '');
+            const customUnitRate = getCustomUnitRate(policy, customUnitRateID);
+            taxCode = customUnitRate?.attributes?.taxRateExternalID ?? '';
+            taxableAmount = DistanceRequestUtils.getTaxableAmount(policy, customUnitRateID, TransactionUtils.getDistance(transaction));
         } else {
-            const defaultTaxCode = TransactionUtils.getDefaultTaxCode(policy, transaction) ?? '';
-            const taxPercentage = TransactionUtils.getTaxValue(policy, transaction, transaction?.taxCode ?? defaultTaxCode) ?? '';
-            taxAmount = TransactionUtils.calculateTaxAmount(taxPercentage, transaction?.amount ?? 0);
+            taxableAmount = transaction?.amount ?? 0;
+            taxCode = transaction?.taxCode ?? TransactionUtils.getDefaultTaxCode(policy, transaction) ?? '';
         }
+        const taxPercentage = TransactionUtils.getTaxValue(policy, transaction, taxCode) ?? '';
+        const taxAmount = TransactionUtils.calculateTaxAmount(taxPercentage, taxableAmount);
         const taxAmountInSmallestCurrencyUnits = CurrencyUtils.convertToBackendAmount(Number.parseFloat(taxAmount.toString()));
         IOU.setMoneyRequestTaxAmount(transaction?.transactionID ?? '', taxAmountInSmallestCurrencyUnits);
-    }, [policy, shouldShowTax, previousTransactionAmount, previousTransactionCurrency, transaction, isDistanceRequest]);
+    }, [policy, shouldShowTax, previousTransactionAmount, previousTransactionCurrency, transaction, isDistanceRequest, customUnitRateID]);
 
     // If completing a split expense fails, set didConfirm to false to allow the user to edit the fields again
     if (isEditingSplitBill && didConfirm) {

src/libs/DistanceRequestUtils.ts

@@ -4,15 +4,14 @@ import type {LocaleContextProps} from '@components/LocaleContextProvider';
 import type {RateAndUnit} from '@src/CONST';
 import CONST from '@src/CONST';
 import ONYXKEYS from '@src/ONYXKEYS';
-import type {LastSelectedDistanceRates, Report, Transaction} from '@src/types/onyx';
+import type {LastSelectedDistanceRates, Report} from '@src/types/onyx';
 import type {Unit} from '@src/types/onyx/Policy';
 import type Policy from '@src/types/onyx/Policy';
 import type {EmptyObject} from '@src/types/utils/EmptyObject';
 import {isEmptyObject} from '@src/types/utils/EmptyObject';
 import * as CurrencyUtils from './CurrencyUtils';
 import * as PolicyUtils from './PolicyUtils';
 import * as ReportUtils from './ReportUtils';
-import * as TransactionUtils from './TransactionUtils';
 
 type MileageRate = {
     customUnitRateID?: string;
@@ -272,22 +271,20 @@ function getCustomUnitRateID(reportID: string) {
     return customUnitRateID;
 }
 
-function calculateTaxAmount(policy: OnyxEntry<Policy>, transaction: OnyxEntry<Transaction>, customUnitRateID: string) {
+/**
+ * Get taxable amount from a specific distance rate, taking into consideration the tax claimable amount configured for the distance rate
+ */
+function getTaxableAmount(policy: OnyxEntry<Policy>, customUnitRateID: string, distance: number) {
     const distanceUnit = PolicyUtils.getCustomUnit(policy);
-    const customUnitID = distanceUnit?.customUnitID;
-    if (!policy?.customUnits || !customUnitID) {
+    const customUnitRate = PolicyUtils.getCustomUnitRate(policy, customUnitRateID);
+    if (!distanceUnit || !distanceUnit?.customUnitID || !customUnitRate) {
         return 0;
     }
-    const policyCustomUnitRate = policy?.customUnits[customUnitID].rates[customUnitRateID];
-    const unit = policy?.customUnits[customUnitID]?.attributes?.unit ?? CONST.CUSTOM_UNITS.DISTANCE_UNIT_MILES;
-    const rate = policyCustomUnitRate?.rate ?? 0;
-    const distance = TransactionUtils.getDistance(transaction);
+    const unit = distanceUnit?.attributes?.unit ?? CONST.CUSTOM_UNITS.DISTANCE_UNIT_MILES;
+    const rate = customUnitRate?.rate ?? 0;
     const amount = getDistanceRequestAmount(distance, unit, rate);
-    const taxClaimablePercentage = policyCustomUnitRate.attributes?.taxClaimablePercentage ?? 0;
-    const taxRateExternalID = policyCustomUnitRate.attributes?.taxRateExternalID ?? '';
-    const taxableAmount = amount * taxClaimablePercentage;
-    const taxPercentage = TransactionUtils.getTaxValue(policy, transaction, taxRateExternalID) ?? '';
-    return TransactionUtils.calculateTaxAmount(taxPercentage, taxableAmount);
+    const taxClaimablePercentage = customUnitRate.attributes?.taxClaimablePercentage ?? 0;
+    return amount * taxClaimablePercentage;
 }
 
 export default {
@@ -300,7 +297,7 @@ export default {
     getRateForP2P,
     getCustomUnitRateID,
     convertToDistanceInMeters,
-    calculateTaxAmount,
+    getTaxableAmount,
 };
 
 export type {MileageRate};

src/libs/PolicyUtils.ts

@@ -97,6 +97,14 @@ function getCustomUnit(policy: OnyxEntry<Policy> | EmptyObject) {
     return Object.values(policy?.customUnits ?? {}).find((unit) => unit.name === CONST.CUSTOM_UNITS.NAME_DISTANCE);
 }
 
+/**
+ * Retrieves custom unit rate object from the given customUnitRateID
+ */
+function getCustomUnitRate(policy: OnyxEntry<Policy> | EmptyObject, customUnitRateID: string): Rate | EmptyObject {
+    const distanceUnit = getCustomUnit(policy);
+    return distanceUnit?.rates[customUnitRateID] ?? {};
+}
+
 function getRateDisplayValue(value: number, toLocaleDigit: (arg: string) => string): string {
     const numValue = getNumericValue(value, toLocaleDigit);
     if (Number.isNaN(numValue)) {
@@ -513,6 +521,7 @@ export {
     getCurrentXeroOrganizationName,
     getXeroBankAccountsWithDefaultSelect,
     getCustomUnit,
+    getCustomUnitRate,
     sortWorkspacesBySelected,
 };
 

src/libs/TransactionUtils.ts

@@ -12,7 +12,7 @@ import {isCorporateCard, isExpensifyCard} from './CardUtils';
 import DateUtils from './DateUtils';
 import * as Localize from './Localize';
 import * as NumberUtils from './NumberUtils';
-import {getCleanedTagName} from './PolicyUtils';
+import {getCleanedTagName, getCustomUnitRate} from './PolicyUtils';
 
 let allTransactions: OnyxCollection<Transaction> = {};
 Onyx.connect({
@@ -662,7 +662,7 @@ function hasNoticeTypeViolation(transactionID: string, transactionViolations: On
 }
 
 /**
- * this is the formulae to calculate tax
+ * Calculates tax amount from the given expense amount and tax percentage
  */
 function calculateTaxAmount(percentage: string, amount: number) {
     const divisor = Number(percentage.slice(0, -1)) / 100 + 1;
@@ -695,10 +695,16 @@ function getRateID(transaction: OnyxEntry<Transaction>): string | undefined {
 }
 
 /**
- * Gets the tax code based on selected currency.
- * Returns policy default tax rate if transaction is in policy default currency, otherwise returns foreign default tax rate
+ * Gets the tax code based on the type of transaction and selected currency.
+ * If it is distance request, then returns the tax code corresponding to the custom unit rate
+ * Else returns policy default tax rate if transaction is in policy default currency, otherwise foreign default tax rate
  */
 function getDefaultTaxCode(policy: OnyxEntry<Policy>, transaction: OnyxEntry<Transaction>, currency?: string | undefined) {
+    if (isDistanceRequest(transaction)) {
+        const customUnitRateID = getRateID(transaction) ?? '';
+        const customUnitRate = getCustomUnitRate(policy, customUnitRateID);
+        return customUnitRate?.attributes?.taxRateExternalID ?? '';
+    }
     const defaultExternalID = policy?.taxRates?.defaultExternalID;
     const foreignTaxDefault = policy?.taxRates?.foreignTaxDefault;
     return policy?.outputCurrency === (currency ?? getCurrency(transaction)) ? defaultExternalID : foreignTaxDefault;
@@ -743,7 +749,7 @@ function getWorkspaceTaxesSettingsName(policy: OnyxEntry<Policy>, taxCode: strin
 }
 
 /**
- * Gets the tax name
+ * Gets the name corresponding to the taxCode that is displayed to the user
  */
 function getTaxName(policy: OnyxEntry<Policy>, transaction: OnyxEntry<Transaction>) {
     const defaultTaxCode = getDefaultTaxCode(policy, transaction);

src/pages/iou/request/step/IOURequestStepConfirmation.tsx

@@ -81,10 +81,13 @@ function IOURequestStepConfirmation({
     const {windowWidth} = useWindowDimensions();
     const {isOffline} = useNetwork();
     const [receiptFile, setReceiptFile] = useState<Receipt>();
+    const requestType = TransactionUtils.getRequestType(transaction);
+    const isDistanceRequest = requestType === CONST.IOU.REQUEST_TYPE.DISTANCE;
 
     const receiptFilename = transaction?.filename;
     const receiptPath = transaction?.receipt?.source;
     const receiptType = transaction?.receipt?.type;
+    const customUnitRateID = TransactionUtils.getRateID(transaction) ?? '';
     const defaultTaxCode = TransactionUtils.getDefaultTaxCode(policy, transaction);
     const transactionTaxCode = (transaction?.taxCode ? transaction?.taxCode : defaultTaxCode) ?? '';
     const transactionTaxAmount = transaction?.taxAmount ?? 0;
@@ -108,8 +111,6 @@ function IOURequestStepConfirmation({
         };
     }, [personalDetails, transaction?.participants, transaction?.splitPayerAccountIDs]);
 
-    const requestType = TransactionUtils.getRequestType(transaction);
-
     const headerTitle = useMemo(() => {
         if (isCategorizingTrackExpense) {
             return translate('iou.categorize');
@@ -290,7 +291,7 @@ function IOURequestStepConfirmation({
     );
 
     const createDistanceRequest = useCallback(
-        (selectedParticipants: Participant[], trimmedComment: string, customUnitRateID: string) => {
+        (selectedParticipants: Participant[], trimmedComment: string) => {
             if (!transaction) {
                 return;
             }
@@ -314,7 +315,7 @@ function IOURequestStepConfirmation({
                 customUnitRateID,
             );
         },
-        [policy, policyCategories, policyTags, report, transaction, transactionTaxCode, transactionTaxAmount],
+        [policy, policyCategories, policyTags, report, transaction, transactionTaxCode, transactionTaxAmount, customUnitRateID],
     );
 
     const createTransaction = useCallback(
@@ -477,9 +478,8 @@ function IOURequestStepConfirmation({
                 return;
             }
 
-            if (requestType === CONST.IOU.REQUEST_TYPE.DISTANCE && !isMovingTransactionFromTrackExpense) {
-                const customUnitRateID = TransactionUtils.getRateID(transaction) ?? '';
-                createDistanceRequest(selectedParticipants, trimmedComment, customUnitRateID);
+            if (isDistanceRequest && !isMovingTransactionFromTrackExpense) {
+                createDistanceRequest(selectedParticipants, trimmedComment);
                 return;
             }
 
@@ -490,7 +490,7 @@ function IOURequestStepConfirmation({
             report,
             iouType,
             receiptFile,
-            requestType,
+            isDistanceRequest,
             requestMoney,
             currentUserPersonalDetails.login,
             currentUserPersonalDetails.accountID,
@@ -581,7 +581,7 @@ function IOURequestStepConfirmation({
                         bankAccountRoute={ReportUtils.getBankAccountRoute(report)}
                         iouMerchant={transaction?.merchant}
                         iouCreated={transaction?.created}
-                        isDistanceRequest={requestType === CONST.IOU.REQUEST_TYPE.DISTANCE}
+                        isDistanceRequest={isDistanceRequest}
                         shouldShowSmartScanFields={isMovingTransactionFromTrackExpense ? transaction?.amount !== 0 : requestType !== CONST.IOU.REQUEST_TYPE.SCAN}
                         action={action}
                         payeePersonalDetails={payeePersonalDetails}

src/pages/iou/request/step/IOURequestStepDistanceRate.tsx

@@ -11,7 +11,7 @@ import * as CurrencyUtils from '@libs/CurrencyUtils';
 import type {MileageRate} from '@libs/DistanceRequestUtils';
 import DistanceRequestUtils from '@libs/DistanceRequestUtils';
 import Navigation from '@libs/Navigation/Navigation';
-import {getCustomUnit, isTaxTrackingEnabled} from '@libs/PolicyUtils';
+import {getCustomUnitRate, isTaxTrackingEnabled} from '@libs/PolicyUtils';
 import * as ReportUtils from '@libs/ReportUtils';
 import * as TransactionUtils from '@libs/TransactionUtils';
 import CONST from '@src/CONST';
@@ -50,8 +50,6 @@ function IOURequestStepDistanceRate({
     const styles = useThemeStyles();
     const {translate, toLocaleDigit} = useLocalize();
     const isDistanceRequest = TransactionUtils.isDistanceRequest(transaction);
-    const distanceUnit = getCustomUnit(policy);
-    const customUnitID = distanceUnit?.customUnitID;
     const isPolicyExpenseChat = ReportUtils.isReportInGroupPolicy(report);
     const shouldShowTax = isTaxTrackingEnabled(isPolicyExpenseChat, policy, isDistanceRequest);
 
@@ -78,10 +76,12 @@ function IOURequestStepDistanceRate({
     const initiallyFocusedOption = sections.find((item) => item.isSelected)?.keyForList;
 
     function selectDistanceRate(customUnitRateID: string) {
-        if (policy?.customUnits && customUnitID && shouldShowTax) {
-            const policyCustomUnitRate = policy?.customUnits[customUnitID].rates[customUnitRateID];
+        if (shouldShowTax) {
+            const policyCustomUnitRate = getCustomUnitRate(policy, customUnitRateID);
             const taxRateExternalID = policyCustomUnitRate.attributes?.taxRateExternalID ?? '';
-            const taxAmount = CurrencyUtils.convertToBackendAmount(DistanceRequestUtils.calculateTaxAmount(policy, transaction, customUnitRateID));
+            const taxableAmount = DistanceRequestUtils.getTaxableAmount(policy, customUnitRateID, TransactionUtils.getDistance(transaction));
+            const taxPercentage = TransactionUtils.getTaxValue(policy, transaction, taxRateExternalID) ?? '';
+            const taxAmount = CurrencyUtils.convertToBackendAmount(TransactionUtils.calculateTaxAmount(taxPercentage, taxableAmount));
             IOU.setMoneyRequestTaxAmount(transactionID, taxAmount);
             IOU.setMoneyRequestTaxRate(transactionID, taxRateExternalID);
         }