PY-HK Tax (0345) (SAP Library - Payroll Hong Kong)

PY-HK Tax (0345)

Definition

This infotype stores the relevant information required for the processing of an employee's tax information, which is valid both for payroll and tax reporting.

Use

In this infotype, you can record:

The employee's enrollment in the rental and overseas travel allowance scheme
The percentage of salary declared as rental and overseas travel allowance
The amount deducted from the employee’s salary for accommodation provided by the employer
The employee's plan to depart from Hong Kong on termination of employment. You can enter the reason for departure and the country the employee is heading for
Whether the employee has overseas payment or not, and the payment amount in case there is
Other Information relevant to the IR56 tax forms

Structure

Overseas Travel Allowance

You may input a percentage of the employee’s wages as the allowance. Afterwards, you must define the base amount as MX00 in the Recurring Payments / Deductions infotype (0014).

Otherwise, you may define the allowance directly in infotype 0014 as MX02.

However, if you maintain all of the above parameters, the system will total them up as the allowance.

For tax reporting purpose, the employee must provide overseas travel receipts, which are recorded in the Receipts infotype (0440).

Rental allowance

The Quarter provided by ER and Nature fields are for IR56 tax forms.

There are two ways to maintain the rental allowance:

If you specify a percentage in % to Rent field, you must maintain a value for MX00 as the calculation base in Recurring Payments/Deductions infotype (0014) accordingly.

As an alternative, you can maintain the allowance manually as an additional payment as MX01 in the infotype.

By selecting ER pays rent to landlord, and specifying the percentage recovered from EE, you can create a rental deduction from the employee.
By selecting EE pays rent to landlord, and specifying the percentage recovered from ER, you can create a rental allowance for the employee.

Other information related to IR56

This section provides information required for IR56 tax forms, such as:

Whether the employee has other income overseas

When the employee plans to leave Hong Kong
Whether the employee's salary tax is paid by the employer

Whether the employee is working part-time and the principal employer’s name if affirmative