There are wage types that are partially taxable.

Article 77 of the Income Tax Act and its regulations establish the conditions that wage types must fulfill to specify tax-exempt amounts.

Using this process you specify the tax exempt amounts for each relevant wage type in accordance with the requirements of current legislation.

SAP provides the current values at any given time.

The client is not allowed to change them, but can display them using the Implementation Guide, section: Payroll accounting ® Payroll accounting: Mexico ® Tax ® Income tax ® Exemptions.

Set the relevant tax wage types assigning to them the appropriate performance value from processing class 61.

Using the personnel calculation rule MX11 you specify the relevant tax wage types. This rule generates technical wage types from the user wage types on the basis of the processing class 61 performance value.

Later, the tax calculation specifies which exemption method you must apply to each technical wage type generated in rule MX11.

You define the exemption method to be applied in the exemptions table mentioned above.

The exempt amounts for each tax wage type are obtained by this process. Once the exemptions have been specified, you can obtain the tax basis.