Entering content frameProcess documentation Determine Tax Payable Locate the document in its SAP Library structure

Purpose

At the end of each calendar year, employers are required to give to each employee and the Inland Revenue Board (IRB) a statement (Form CP8A/EA) showing the total remuneration paid for the year and the amount of tax deductions made.

Although a schedule is provided by the IRB, the system uses a pre-determined formula that reflects the schedule.

Prerequisites

Process Flow

The processing steps for determining tax deductions are:

Note  In the case of bonuses, the monthly component is used to calculate the tax on bonus for the month which is projected for the whole year. In this case, the last normal payroll run is used.

Result

The result of this process is the amount of tax payable.

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