fix: Tax amount field is not zero on confirm page when tax reclaimable on is empty by etCoderDysto · Pull Request #81805 · Expensify/App

etCoderDysto · 2026-02-08T19:26:31Z

Explanation of Change

Fixed Issues

$ #79867
$ #73413
PROPOSAL: #79867 (comment)

Tests

Same as QA steps

Verify that no errors appear in the JS console

Offline tests

Same as QA steps

QA Steps

// TODO: These must be filled out, or the issue title must include "[No QA]."

Test 1

Precondition:

Distance rates and Taxes are enabled.
Track tax is enabled in Distance rates settings.

Go to staging.new.expensify.com
Go to workspace settings > Distance rates.
Open the default rate.
Click Tax rate.
Select Tax rate 5% (can be any rate as long as it is not 0%).
Leave Tax reclaimable on empty.
Go to workspace chat.
Click + > Track distance > Manual.
Enter amount > Next.
Verify that Tax amount field is zero on confirmation page
Click Create expense.
Open the distance expense.
Verify that Tax amount field is 0.00

Verify that no errors appear in the JS console

PR Author Checklist

Screenshots/Videos

Android: Native

android.1.Screen.Recording.2026-02-09.at.1.11.09.in.the.afternoon.mp4

Android: mWeb Chrome

android.chrome.1.Screen.Recording.2026-02-09.at.12.41.00.in.the.afternoon.mp4

iOS: Native

ios.1.Screen.Recording.2026-02-09.at.12.19.52.in.the.afternoon.mp4

iOS: mWeb Safari

ios.safari.1.Screen.Recording.2026-02-09.at.12.33.54.in.the.afternoon.mp4

MacOS: Chrome / Safari

web.1.Screen.Recording.2026-02-08.at.9.49.34.at.night.mp4

…s undefiend

…ance rate is deleted

… tax rate deletion

codecov · 2026-02-14T08:13:20Z

Codecov Report

✅ Changes either increased or maintained existing code coverage, great job!

Files with missing lines	Coverage Δ
src/libs/DistanceRequestUtils.ts	`86.45% <100.00%> (ø)`
... and 19 files with indirect coverage changes

…than zero

melvin-bot · 2026-02-14T11:16:52Z

@Ollyws Please copy/paste the Reviewer Checklist from here into a new comment on this PR and complete it. If you have the K2 extension, you can simply click: [this button]

ZhenjaHorbach · 2026-02-14T11:26:01Z

Reviewer Checklist

I have verified the author checklist is complete (all boxes are checked off).
I verified the correct issue is linked in the ### Fixed Issues section above
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- I verified the steps for local testing are in the Tests section
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I verified tests pass on all platforms & I tested again on:
- Android: HybridApp
- Android: mWeb Chrome
- iOS: HybridApp
- iOS: mWeb Safari
- MacOS: Chrome / Safari
If there are any errors in the console that are unrelated to this PR, I either fixed them (preferred) or linked to where I reported them in Slack
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- I verified any copy / text shown in the product is localized by adding it to src/languages/* files and using the translation method
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- I verified any copy / text that was added to the app is grammatically correct in English. It adheres to proper capitalization guidelines (note: only the first word of header/labels should be capitalized), and is either coming verbatim from figma or has been approved by marketing (in order to get marketing approval, ask the Bug Zero team member to add the Waiting for copy label to the issue)
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Screenshots/Videos

Android: HybridApp

Android: mWeb Chrome

iOS: HybridApp

iOS: mWeb Safari

MacOS: Chrome / Safari

joekaufmanexpensify

👍

heyjennahay · 2026-02-20T10:52:20Z

Removing myself since @joekaufmanexpensify has already reviewed

Ollyws · 2026-03-12T10:03:03Z

@ZhenjaHorbach are you reviewing this one?

ZhenjaHorbach · 2026-03-12T10:04:18Z

@ZhenjaHorbach are you reviewing this one?

Yes!
But unfortunately, we need to wait for BE fix

etCoderDysto · 2026-04-06T11:50:02Z

@ZhenjaHorbach PR is ready for further review. BE issue is fixed.

etCoderDysto · 2026-04-06T11:59:44Z

There is a bug I have noticed.

BUG: Wrong tax rate is used when selecting a distance rate that doesn't have a tax rate associated with it.

Enable Tax feature
Create tax rate 1 (10 %), and tax rate 2 (15%)
Open tax rate settings -> Set Workspace currency default and Foreign currency default to the default tax rate (5%)
Go distance rates -> add rate 1 ($1/ mile) and rate 2 ($2 /mile)
On rate 1, add 10% tax without tax reclaimable
On rate2, add 15% tax without tax reclaimable
Delete tax rate on taxes page
Go to workspace chat -> Track distance -> Manual -> Select rate 1 -> Change it to rate 2

Expected: Tax rate should be the workspace currency default tax rate (5 %)

Actual result: Tax rate equals to rate 1's tax rate while selecting rate 2

Screen.Recording.2026-04-06.at.2.35.22.in.the.afternoon.mp4

etCoderDysto · 2026-04-06T12:16:19Z

BUG: Wrong tax rate is used when selecting a distance rate that doesn't have a tax rate associated with it.

Root cause:

When we select a different distance rate, we call selectDistanceRate

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

Lines 145 to 152 in e470b0a

    
           const defaultTaxCode = getDefaultTaxCode(policy, currentTransaction) ?? ''; 
        
           // eslint-disable-next-line @typescript-eslint/prefer-nullish-coalescing 
        
           taxRateExternalID = policyCustomUnitRate?.attributes?.taxRateExternalID || defaultTaxCode; 
        
           const taxableAmount = DistanceRequestUtils.getTaxableAmount(policy, customUnitRateID, getDistanceInMeters(currentTransaction, currentUnit)); 
        
           const taxPercentage = taxRateExternalID ? getTaxValue(policy, currentTransaction, taxRateExternalID) : undefined; 
        
           taxAmount = convertToBackendAmount(calculateTaxAmount(taxPercentage, taxableAmount, getCurrencyDecimals(rates[customUnitRateID].currency))); 
        
           setMoneyRequestTaxAmount(transactionID, taxAmount, shouldUseTransactionDraft(action)); 
        
           setMoneyRequestTaxRate(transactionID, taxRateExternalID ?? null, shouldUseTransactionDraft(action));

Inside selectDistanceRate, we fall back to using defaultTaxCode when the selected distance rate’s taxRateExternalID is undefined.

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

Line 147 in e470b0a

    
           taxRateExternalID = policyCustomUnitRate?.attributes?.taxRateExternalID || defaultTaxCode;

We then update the transaction’s taxRateExternalID with the defaultTaxCode.

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

Line 152 in e470b0a

    
           setMoneyRequestTaxRate(transactionID, taxRateExternalID ?? null, shouldUseTransactionDraft(action));

The problem is inside getDefaultTaxCode. It uses the transaction’s customUnitRateID to get the customUnitRate, and then returns the taxRateExternalID associated with that transaction. As a result, we end up using the previously selected distance rate’s (rate 1) tax rate when switching to a different distance rate (rate 2).

App/src/libs/TransactionUtils/index.ts

Lines 2117 to 2123 in ed04796

    
           const customUnitRateID = getRateID(transaction) ?? ''; 
        
           const customUnitRate = getDistanceRateCustomUnitRate(policy, customUnitRateID); 
        
           const customUnit = getDistanceRateCustomUnit(policy); 
        
           if (!customUnitRate?.attributes?.taxRateExternalID && customUnit?.attributes?.taxEnabled) { 
        
               return policy?.taxRates?.defaultExternalID; 
        
           } 
        
           return customUnitRate?.attributes?.taxRateExternalID;

ZhenjaHorbach · 2026-04-06T12:40:04Z

BUG: Wrong tax rate is used when selecting a distance rate that doesn't have a tax rate associated with it.

Root cause:

When we select a different distance rate, we call selectDistanceRate

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

Lines 145 to 152 in e470b0a

const defaultTaxCode = getDefaultTaxCode(policy, currentTransaction) ?? '';

// eslint-disable-next-line @typescript-eslint/prefer-nullish-coalescing

taxRateExternalID = policyCustomUnitRate?.attributes?.taxRateExternalID || defaultTaxCode;

const taxableAmount = DistanceRequestUtils.getTaxableAmount(policy, customUnitRateID, getDistanceInMeters(currentTransaction, currentUnit));

const taxPercentage = taxRateExternalID ? getTaxValue(policy, currentTransaction, taxRateExternalID) : undefined;

taxAmount = convertToBackendAmount(calculateTaxAmount(taxPercentage, taxableAmount, getCurrencyDecimals(rates[customUnitRateID].currency)));

setMoneyRequestTaxAmount(transactionID, taxAmount, shouldUseTransactionDraft(action));

setMoneyRequestTaxRate(transactionID, taxRateExternalID ?? null, shouldUseTransactionDraft(action));

Inside selectDistanceRate, we fall back to using defaultTaxCode when the selected distance rate’s taxRateExternalID is undefined.

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

Line 147 in e470b0a

taxRateExternalID = policyCustomUnitRate?.attributes?.taxRateExternalID || defaultTaxCode;

We then update the transaction’s taxRateExternalID with the defaultTaxCode.

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

Line 152 in e470b0a

setMoneyRequestTaxRate(transactionID, taxRateExternalID ?? null, shouldUseTransactionDraft(action));

The problem is inside getDefaultTaxCode. It uses the transaction’s customUnitRateID to get the customUnitRate, and then returns the taxRateExternalID associated with that transaction. As a result, we end up using the previously selected distance rate’s (rate 1) tax rate when switching to a different distance rate (rate 2).

App/src/libs/TransactionUtils/index.ts

Lines 2117 to 2123 in ed04796

const customUnitRateID = getRateID(transaction) ?? '';

const customUnitRate = getDistanceRateCustomUnitRate(policy, customUnitRateID);

const customUnit = getDistanceRateCustomUnit(policy);

if (!customUnitRate?.attributes?.taxRateExternalID && customUnit?.attributes?.taxEnabled) {

return policy?.taxRates?.defaultExternalID;

}

return customUnitRate?.attributes?.taxRateExternalID;

Let's fix it in a separate PR when we merge this PR
And I will check this PR today or tomorrow

ZhenjaHorbach · 2026-04-08T13:22:36Z

LGTM!

OSBotify · 2026-04-08T23:27:11Z

✋ This PR was not deployed to staging yet because QA is ongoing. It will be automatically deployed to staging after the next production release.

github-actions · 2026-04-08T23:55:49Z

🚧 @roryabraham has triggered a test Expensify/App build. You can view the workflow run here.

github-actions · 2026-04-09T00:12:11Z

🧪🧪 Use the links below to test this adhoc build on Android, iOS, and Web. Happy testing! 🧪🧪
Built from App PR #81805.

Android 🤖	iOS 🍎
https://ad-hoc-expensify-cash.s3.us-east-1.amazonaws.com/rock-artifacts/ad-hoc/rock-android-Adhoc-b70d8fe-25f65b6-7e2e60065770b134e8808e0a5fa0864d786f24d0/index.html	https://ad-hoc-expensify-cash.s3.us-east-1.amazonaws.com/rock-artifacts/ad-hoc/rock-ios-device-AdHoc-b70d8fe-25f65b6-2e882f6005e80f14722485e5d39bc4af12992f92/index.html

Web 🕸️
https://81805.pr-testing.expensify.com

👀 View the workflow run that generated this build 👀

OSBotify · 2026-04-09T00:56:40Z

🚀 Deployed to staging by https://github.com/roryabraham in version: 9.3.55-0 🚀

platform	result
🕸 web 🕸	success ✅
🤖 android 🤖	success ✅
🍎 iOS 🍎	success ✅

Bundle Size Analysis (Sentry):

Android
iOS

MelvinBot · 2026-04-09T01:01:59Z

No help site changes are required for this PR.

This PR fixes a bug in src/libs/DistanceRequestUtils.ts where the taxClaimablePercentage default fallback was 1 (100%) instead of 0 when the field is empty/undefined. This caused the tax amount to be incorrectly non-zero on the confirmation page when "Tax reclaimable on" is left empty for a distance rate.

This is a purely internal calculation fix — it corrects a default value in the tax computation logic. I reviewed the relevant help site articles:

docs/articles/new-expensify/workspaces/Set-distance-rates.md
docs/articles/new-expensify/workspaces/Track-Taxes.md
docs/articles/new-expensify/reports-and-expenses/Distance-Expenses.md

None of these articles describe the specific behavior of the taxClaimablePercentage field or its default value. The fix aligns the frontend behavior with the backend (defaulting to 0% when unconfigured), which is the expected behavior — no new user-facing functionality or changed workflows to document.

etCoderDysto added 2 commits February 7, 2026 12:32

use 0 as default taxClaimablePercentage when taxClaimablePercentage i…

b311ae4

…s undefiend

avoid calculating tax rate when when tax rate associted with the dist…

67a38d6

…ance rate is deleted

melvin-bot bot assigned etCoderDysto Feb 8, 2026

etCoderDysto added 4 commits February 11, 2026 15:16

Merge branch 'main' into fix_79867

ba17f7e

Remove taxRateExternalID check and rely on backend null assignment on…

c29d92f

… tax rate deletion

Merge branch 'main' into fix_79867

1f63cf2

Merge branch 'main' into fix_79867

32cf3ac

etCoderDysto added 3 commits February 14, 2026 12:47

add test for getTaxableAmount when taxClaimablePercentage is undefined

fd32b3e

add test for getTaxableAmount when taxClaimablePercentage is greater …

3cd271b

…than zero

rename variable to avoiding scoping issue

e43e963

etCoderDysto marked this pull request as ready for review February 14, 2026 11:16

etCoderDysto requested review from a team as code owners February 14, 2026 11:16

melvin-bot bot requested review from a team, Ollyws and joekaufmanexpensify and removed request for a team February 14, 2026 11:16

melvin-bot bot requested review from heyjennahay and removed request for a team February 14, 2026 11:16

joekaufmanexpensify previously approved these changes Feb 16, 2026

View reviewed changes

heyjennahay removed their request for review February 20, 2026 10:51

resolve conflict

354c95a

etCoderDysto dismissed joekaufmanexpensify’s stale review via 354c95a April 6, 2026 09:14

etCoderDysto added 2 commits April 6, 2026 13:29

fix a failing test

63b5493

fix grammar error

addfe30

ZhenjaHorbach approved these changes Apr 8, 2026

View reviewed changes

melvin-bot bot requested a review from roryabraham April 8, 2026 13:22

roryabraham approved these changes Apr 8, 2026

View reviewed changes

roryabraham merged commit b70d8fe into Expensify:main Apr 8, 2026
32 checks passed

OSBotify mentioned this pull request Apr 9, 2026

Deploy Checklist: New Expensify 2026-04-09 #87435

Open

62 tasks

ZhenjaHorbach mentioned this pull request Apr 9, 2026

[$250] Distance - Tax amount field is not zero on confirm page when tax reclaimable on is empty #79867

Open

7 tasks

jponikarchuk mentioned this pull request Apr 9, 2026

Expense - Tax amount briefly updates before resetting to 0 when editing amt in distance expense #87483

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7 tasks

c3024 mentioned this pull request Apr 9, 2026

[HOLD E/E #601592] Distance - Change waypoint before create expense, Tax amount change to 0 #79861

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Explanation of Change

Fixed Issues

Tests

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QA Steps

Test 1

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Root cause:

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