Tax Statement s for Year End Adjustment

Use

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 t ax s tatement s 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.

The following function applies to the HCM, Localization for CA, CN, FI, IN, IE, JP, SG, and TW (HCM_LOC_CI_11) business function . If you activate the business function, companies can prepare the withholding tax statement for each tax category for an employee if the following conditions are satisfied:

  • The employee is not subject to YEA.

  • The employee receives payments from different tax categories within the same year.

If the employee is subject to YEA, the withholding tax statement contains all payments paid during the processing year, regardless of the tax categories.

The report retrieves and calculates the data from the YEA result. However, if the employee is not subject to YEA and has payments from different tax categories, the report retrieves and calculates the data from the payroll result.

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

Prerequisites

  • Tax Statement s must be created after the Year End Adjustment processing is completed .

  • The following prerequisites only apply to the business function HCM, Localization for CA, CN, FI, IN, JP, SG, and TW (HCM_LOC_CI_11)

    • If you want to change the total taxable amount and the income tax amount for employment income or retirement income, you can do so in Customizing for Payroll for Japan under Tax-> Reporting -> Business Add-Ins (BAdIs)-> BAdI: Modification ofOutput Results of Withholding Tax Statement .

    • If you want to change the sorting order or the layout of withholding tax statements or salary payment reports in PDF form, you can do so in Customizing for Payroll for Japan under Tax-> Reporting-> Business Add-Ins-> BAdI: PDF Form Output Change for RPCEADJ0 .

  • If you want to change the logic to judge whether the employee you are processing needs to submit withholding tax statements, you can do so in Customizing for Japan for Payroll under Tax ->Reporting -> Business Add-Ins-> BAdI: Modification of Withholding Tax Statements . This function only applies for data medium submission. This prerequisite only applies to the business function This prerequisite only applies to the business function HCM, Rehiring Following Retirement Topics for Japan (HCM_LOC_CI_13).

Features

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.

    For retirement allowance, Tax Statement for Retirement Allowance must also be issued. But the tax statement for retirement allowance requires different form which is created by a separate function. For more information, see Periodical Retirement Allowance Income Tax Statement .

    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.

    The report prints withholding tax statements or salary payment reports on plain paper. This function only applies to the HCM, Localization for CA, CN, FI, IN, IE, JP, SG, and TW (HCM_LOC_CI_11) business function .

    • When you print the withholding tax statements in PDF form, the system uses the format provided by the National TaxAgency.

    • When you print salary payment reports in PDF form, the system uses the format provided by the Ministry of Internal Affairs and Communications (MIC).

Activities

  1. For printing Withholding Tax Statement for Employment Income form for employee's and Tax Authority, and Salary Income Information Return for Salary Income Earner form for municipal offices, see Creating Tax Statements for Y.E.A. on Printed Forms .

  2. For creating Withholding Tax Statement for Employment Income data file for Tax Authority, see Creating Tax Statements for Y.E.A. on Date Fil e and Copying Tax Statement Data in the TemSe to Data Medium .