Income Tax (ISLR) (Infotype 0399) 

Definition

Infotype 0399 is mandatory for all employees and enables you to enter the information required to calculate the Income Tax (ISLR) rate that must be deducted from the employee’s income in accordance with the information included in the Withholding Agent AR-I return form.

Structure

This infotype has been designed in accordance with the AR-I form structure. The required fields for entering the relevant information are grouped into basic data, remuneration and tax deductions, reductions and effected remuneration and benefits.

The different groups contain the following fields:

Basic data

Taxable Year: this is the fiscal year or tax year to which the Income Tax (ISLR) return applies.

Period: this refers to one of the five legal periods in which the AR-I (Withholding Agent) form must be presented during the tax year.

Maximum ISLR Percentage: this checkbox indicates that the company must deduct the maximum percentage of income tax (ISLR) from the employee. This applies to natural non-resident persons

ISLR contribution: percentage deducted from all items subject to ISLR (income tax).

Remuneration and Tax deductions

Remuneration: refers to the estimated income amount the employee is to receive from the company during the tax year.

Deduction: refers to the estimated amount of expenses the employee will incur during the tax year. There are two options:

●     One-off: if the employee chooses the one-off tax deduction established by law.

●     Amount: if the employee states an estimated tax deduction amount.

Reductions

Dependent relatives: corresponds to the number of people economically dependent on the employee.

Overtaxation: amount corresponding to the overtaxation of the employee in previous tax years.

Effected Remuneration and Deductions

You can use this section when the previously made tax return is modified. The relevant data applicable to the rest of the year are indicated in the following fields:

Received Remuneration: total income paid to the employee from the start of the tax year up until the AR-I form modification date.

Tax deducted: total tax amount deducted from the employee from the start of the tax year up until the AR-I form modification date.