Processing Schedular Tax Deduction 
Purpose
The payroll portion of tax computation involves a function LTAX (Process STD Tax). This function retrieves STD information for the employee using infotypes Schedular Deduction Tax (0198) and Family/Related Person (0021), and calculates the tax based on normal and other earnings of the employee.
Prerequisites
The following actions must be performed:
Schedular Deduction Tax (0198) and Family/Related Person (0021) must be entered.
- Set up the LTAXD feature using the Implementation Guide of the Payroll Malaysia component. Choose
Tax ® Schedular Tax Deduction
® Determine tax category.
- Set up the tax payee details and employer tax reference number using the Implementation Guide of the Payroll Malaysia component. Choose
Tax ® Setting Tax Payee and Employer Reference Number.
Enter tax-related payroll schemas and rules before running payroll in the Implementation Guide of the Payroll Malaysia component. Choose
Tax ® Maintaining Tax-Related Payroll Schemas and Rules.
Process Flow
The following are the processing steps for STD:
- Data in infotype Schedular Deduction Tax (0198) is read.
- The values for total tax earnings are obtained i.e. normal and other earnings.
- The statutory tax rates table is read.
- The various deductions based on constants stored in the statutory constants table are computed.
- The tax structure of the payroll results is filled.
Result
The monthly tax deduction is calculated.
- If a monthly payroll was run, CP39 is printed.
- If an annual payroll was run, the following are printed.
- EA Form
- CP159
- PCB 2(II)
- Summary EA Form