Income Type 

Definition

A system object that classifies payment recipients according to whether they are resident in South Korea. This information is shown when you print a withholding tax certificate for the vendor.

Use

Define the following income types in Customizing for Financial Accounting (FI), by choosing Financial Accounting Global Settings ® Withholding Tax ® Extended Withholding Tax ® Basic Settings ® Define Income Types.

Income Type	Text
1	Resident
2	Nonresident

Assign an income type to each withholding tax code.

Day-to-Day Activities

All withholding tax items are assigned to a withholding tax code. Since each withholding tax code is also assigned to an income type, the system automatically knows whether the tax was withheld from a vendor that is resident in South Korea.

Periodic Processing

The tax certificates for other income show whether the vendor is resident in South Korea, and if not, in which country they are resident.