Section Code 

Definition

An organizational unit in the system that represents a combination of district tax office and local tax office. You assign a section code to all withholding tax items. When you come to prepare a withholding tax return, the system uses the section code to determine which district tax office to remit the income tax to, and which local tax office to remit the inhabitant tax to.

Use

Customizing

Set up your section codes in Customizing for Financial Accounting (FI), by choosing Financial Accounting Global Settings ® Withholding Tax ® Extended Withholding Tax ® Basic Settings ® South Korea ® Define Section Codes.

You typically create one section code for each of your VAT registrations, but if within a VAT registration you have to report to more than one local tax office, you create a section code for each combination of district tax office and local tax office.

Day-to-Day Activities

Whenever you post an incoming invoice (or any other document involving withholding tax), assign it to a section code. If you have specified which business place the section code belongs to in Customizing, the system automatically enters the business place (for internal controlling purposes, if you require).

Reporting

When you prepare a withholding tax return, you enter the section code in the dialog box that appears when you execute program. The system selects only the withholding tax items that have been assigned to this section code.