[$250] Expense - Tax rate changes to default rate 0% after adding unreported expense to expense report

[lanitochka17]

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Version Number: 9.3.16-4
Reproducible in staging?: Yes
Reproducible in production?: Yes
If this was caught during regression testing, add the test name, ID and link from BrowserStack: #78358
Email or phone of affected tester (no customers): sjdoisjnodjsojdinsoi@gmail.com
Issue reported by: Applause Internal Team
Bug source: Exploratory - Significant User Experience Deterioration
Device used: Mac 26.2 / Chrome
App Component: Money Requests

Action Performed:

Precondition:

• Enable Taxes in workspace settings > More features.

1. Go to staging.new.expensify.com
2. Go to self DM.
3. Create an expense with 5% tax rate.
4. Go to workspace chat.
5. Create an empty report.
6. On the empty report, click Add expense > Add unreported expense.
7. Select the self DM expense from Step 3 > Add to report.
8. Open the expense report.

Expected Result:

Tax rate should remain unchanged - 5% rate.

Actual Result:

Tax rate changes to default rate 0% after adding unreported expense to expense report.

Workaround:

Unknown

Platforms:

• Android: App
• Android: mWeb Chrome
• iOS: App
• iOS: mWeb Safari
• iOS: mWeb Chrome
• Windows: Chrome
• MacOS: Chrome / Safari

Screenshots/Videos

Bug7073807_1770742277658.19.mp4

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Issue Owner

Current Issue Owner: @jayeshmangwani

Upwork Automation - Do Not Edit

• Upwork Job URL: https://www.upwork.com/jobs/~022021332581426929860
• Upwork Job ID: 2021332581426929860
• Last Price Increase: 2026-02-17

[melvin-bot]

Triggered auto assignment to Contributor-plus team member for initial proposal review - @jayeshmangwani (External)

[melvin-bot]

Triggered auto assignment to @laurenreidexpensify (Bug), see https://stackoverflow.com/c/expensify/questions/14418 for more details. Please add this bug to a GH project, as outlined in the SO.

[melvin-bot]

Job added to Upwork: https://www.upwork.com/jobs/~022021332581426929860

[abbasifaizan70]

Proposal

Please re-state the problem that we are trying to solve in this issue.

Tax Rate Should Remain 5% After Adding Unreported Expense to Expense Report

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What is the root cause of that problem?

When the expense is moved from self DM to the workspace report, the transaction can contain a taxCode that does not exist in the destination policy tax list.

In MoneyRequestView, the tax label is derived with getTaxName(policy, transaction, isExpenseUnreported).

• For many expense reports, isExpenseUnreported is false.
• This disables fallback to the transaction's stored taxValue.
• When taxCode is not found in destination policy taxes, UI resolves tax display through destination defaults (often 0%) instead of preserving the original transaction tax value (5%).

So the tax appears reset even though transaction-level tax data should be preserved.

App/src/components/ReportActionItem/MoneyRequestView.tsx

Lines 311 to 318 in 292a97c

	: convertToDisplayString(Math.abs(transactionTaxAmount ?? 0), transactionCurrency);
	const taxRatesDescription = taxRates?.name;
	const taxRateTitle = updatedTransaction ? getTaxName(policy, updatedTransaction, isExpenseUnreported) : getTaxName(policy, transaction, isExpenseUnreported);
	const actualTransactionDate = isFromMergeTransaction && updatedTransaction ? getFormattedCreated(updatedTransaction) : transactionDate;
	const fallbackTaxRateTitle = transaction?.taxValue;

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What changes do you think we should make in order to solve the problem?

Proposed solution:
Always allow getTaxName() fallback behavior in MoneyRequestView for this display path by passing true as the third argument.

This ensures:

• If taxCode exists in destination policy, we show that mapped tax normally.
• If taxCode does not exist in destination policy (move from self DM case), we fall back to transaction taxValue (e.g. 5%) instead of showing the policy default (0%).

This is a minimal and localized UI fix in one TypeScript file.

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Change - Preserve transaction tax value fallback in MoneyRequestView

App/src/components/ReportActionItem/MoneyRequestView.tsx

Lines 311 to 318 in 292a97c

	: convertToDisplayString(Math.abs(transactionTaxAmount ?? 0), transactionCurrency);
	const taxRatesDescription = taxRates?.name;
	const taxRateTitle = updatedTransaction ? getTaxName(policy, updatedTransaction, isExpenseUnreported) : getTaxName(policy, transaction, isExpenseUnreported);
	const actualTransactionDate = isFromMergeTransaction && updatedTransaction ? getFormattedCreated(updatedTransaction) : transactionDate;
	const fallbackTaxRateTitle = transaction?.taxValue;

New code (TypeScript):

const taxRatesDescription = taxRates?.name;
const taxRateTitle = updatedTransaction ? getTaxName(policy, updatedTransaction, true) : getTaxName(policy, transaction, true);

const actualTransactionDate = isFromMergeTransaction && updatedTransaction ? getFormattedCreated(updatedTransaction) : transactionDate;
const fallbackTaxRateTitle = transaction?.taxValue;

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