Define Annual Salary Brackets

In this step, you set up:

• Annual tax salary brackets

• Minimum fixed tax amounts

• Excess tax percentages

These settings should coincide with the tax table provided on the Individual Income Tax Return BIR form.

Standard Settings

In the standard system, the salary brackets and taxes provided by the Bureau of Internal Revenue (BIR) and valid at time of creation have been set up as defaults.

Recommendation

If the BIR changes a salary bracket, SAP recommends that you delimit the validity dates of existing records and create new records.
You must never modify an existing record, because tax calculation errors may arise if changes to an existing record are only valid from a certain period.

Activities

To define annual salary brackets, you can either: