Company that withholds income tax at source from the payment to an employee must report the details of the income paid to the employee, describing the amount of salary income and other items paid in the preceding year.

The SAP System enables you to create the following tax statements for your employees and tax offices.

• Withholding Tax Statement for Employment Income (Kyuyo Shotoku no Gensenchoshu-Hyo) for employees and Tax Authority

• Salary Income Information Return for Salary Income Earner (Kyuyo Shiharai Houkoku-Sho) for municipal offices

The Withholding Tax Statement must be submitted to the Tax Authority and Salary Income Information Return must be submitted to the Tax Authority and to the inhabitant tax office (municipal office) administering the salary income earner's (employee's) place of domicile by January 31 of the year.

For more information on Year End Adjustment (YEA) processing scenarios, see:

Tax Statements must be created after the Year End Adjustment processing is completed.

Printing layout of tax statements are designed based on pre-printed format provided by Nihon Horei.

Tax Statement function has the following features:

• Printing information on Withholding Tax Statement for Employment Income form
  If you select Withholding tax statement, in the Output selection block on the selection screen, Withholding Tax Statement for Employment Income form will be printed.

• Printing information on Salary Income Information Return for Salary Income Earner form
  If you select Pay slip, in the Output selection block on the selection screen, Salary Income Information Return for Salary Income Earner will be printed and additionally printed forms will be sorted by the municipal city code.

• Creating tax statement on data file
  If your company is approved to submit Tax Statement information in data file (MTR), you can do so by selecting Tax statement by data medium in the Output selection block.

• Printing tax statement and return for retiree
  You can also create Tax Statement and Salary Income Information Return for retirement liquidation if Year End Adjustment process is performed together with retirement liquidation. You can do so by selecting Employee with termination in the Employee selection block on the selection screen.

• Tax Statement function uses SAPscript to specify printing format and sample forms are delivered together with this function. The SAPscript form name is GENSEN. For more information about SAPscript, see BC - Word-Processing in the SAPscript Editor.