Define Tax Status

In this step, you set up the tax statuses that are assigned to every employee in the Taxation Philippines infotype (0411). The tax status affects the amount of tax deducted from an employee's gross remuneration every payroll period.

Standard Settings

The standard system contains model entries of all the tax statuses provided by the Bureau of Internal Revenue (BIR).

Recommendation

You should only enter an additional tax status or modify the model entries in the event of:

• Legislative changes to a tax status by the BIR

• An additional exemption status introduced by the BIR

Activities

To set up tax statuses, you can either: