The Personal Tax Status infotype (0541) contains details about the employee’s personal tax status. This information is used to calculate withholding and year-end adjustment tax.

You need to maintain the Personal Tax Status record for different types of employees.

• For non-Korean-resident employees, they are only eligible for basic tax deduction.
• Handicapped employees are eligible for additional tax deduction.
• When employees work overseas, their income is exempted from tax.
• In case a female employee is the matriarch of her family who has no spouse but needs to support her dependents, the employee is eligible for additional tax deduction.
• If the employee’s job is within the production industry and his or her monthly income is less than 1,000,000 KRW, his or her overtime allowance is not liable for taxation.
• Employees who work in a special industry are therefore eligible for non-taxable income depending on the years of work experience.

To perform the year-end adjustment taxation for foreigners, you need to determine whether the foreigner is eligible for tax exemption according to the tax exemption regulation law and/or the income tax law.

If the foreigner is eligible for the tax exemption regulation law or the income tax law, he or she needs to submit the qualification document to the authority. Enter the date on which the document was submitted and the date on which it was received by the authority.

If the personal tax status changes during a payroll period, you should delimit the previous record at the end date of the payroll period and create a new record from the next payroll period because the SAP System uses the last record in the payroll period to calculate tax.