diff --git a/erpnext/patches/v12_0/update_item_tax_template_company.py b/erpnext/patches/v12_0/update_item_tax_template_company.py
new file mode 100644
index 0000000000..54ce78ed22
--- /dev/null
+++ b/erpnext/patches/v12_0/update_item_tax_template_company.py
@@ -0,0 +1,11 @@
+from __future__ import unicode_literals
+import frappe
+
+def execute():
+    item_tax_template_list = frappe.get_list('Item Tax Template')
+    for template in item_tax_template_list:
+        doc = frappe.get_doc('Item Tax Template', template.name)
+        for tax in doc.taxes:
+            doc.company = frappe.get_value('Account', tax.tax_type, 'company')
+            break
+        doc.save()
\ No newline at end of file