SAP Corporate Income Tax Functionality

Hello. This may be a stupid question, but we are wondering what other SAP customers do for Corporate Income Tax requirements in SAP, for actual and for planning. Seems like our Tax team basically does everything off-line. I know there are SAP partner-companies out there like Vertex that offer bolt-on packages for Sales Taxes, but is there any SAP delivered functionality or bolt-on functionality for Corporate Income Taxes??
Thanks for your responses.
Gary Parsons.

Hi Gary,
What is the country you are referring to?
SAP does have standard tax procedures established for different countries. For example CIN version is used for Purchase & Sales Tax for Country India. SAP has one for USA. However it is based on Actuals only.
When you say "is there any SAP delivered functionality or bolt-on functionality for Corporate Income Taxes" I believe you are referring to online tax information about a particular company. Based on this I think there is no such functionality in SAP. However you can get this information by configuring your systems accordingly and passing manual entries to give you this figure.
Hope this helps......
Thank You.

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Hi
You can use additional wage type (infotype 0015)
and subtype voluntary tax std is MVT1 as per SAP
if you maintain 0.01 value here and indicating the month
SAP calculated income tax is supressed and this is how u can stip income tax deduction for a month
with regards
partha
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Function module for calculation of Income Tax

Hi Friends,
Please guide me any function module which calculates income tax.
I have total income with me.
I want to know the :--
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Shivani

Hi,
Refer below link
http://help.sap.com/saphelp_470/helpdata/en/0d/bec6ba2cec4cf69e9ba5b43dbec440/content.htm
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venkat

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Dear Friends,
My issue is closed, by applying the below note. this will be useful for others in future
SAP NOTE :- 1850965
As per the Union Budget 2013 - 2014, for individuals having a taxable income less than 5 Lac, a tax credit of INR 2,000 would be given. While executing payroll (TCode: PC00_M40_CALC_SIMU) for employees, when a cross financial year retro is triggered from previous year, tax credit amount is being generated. However, it is not reducing the overall tax liability of the employee. This behavior is incorrect. For an employee 'X' a cross financial retro is triggered. After considering the cross FY arrears, employees' taxable income comes out to be less than 5 Lac. In this case, a tax credit of INR 2,000 is generated. Suppose, the overall tax liability of employee 'X' was INR 10,000, then even after tax credit his liability remains 10,000. Tax liability for employee shall become INR 8,000 (10,000 - 2,000).
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What is Income Tax Depreciation - India and How it is dealt in SAP?

Dear Experts,
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Nimish Agarwal
deleted
Moderator: Upon next violation of SDN rules your user will be blocked

Hi Nimish,
Please follow the link below where I have replied on IT Depreciation and the concept of Group Asset earlier. This will help you.
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Hi all,
Can anyone please tell me that how would i know the tax ranges defined in payroll and where we maintain the ranges? suppose i have income from 100000 to 200000 per annum so how we know that how much tax i'll have to pay and where can i maintain this range?
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Edited by: saurabh srivastava on Mar 16, 2009 6:28 AM

Hi Dude,
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Corporate Profit Tax (CPT) solution for Russia in ECC6

Hi,
We are implementing Russia localization solution for a client and would like help on configuration of SAP solution of corporate profit tax.
If someone has implemented CPT for Russia in ECC6 version, pls. can you provide me any documentation that could help me in configuring corporate profit tax solution in ECC6.
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Nitin

Hello,
ECC6 does not mean that you are having New GL with document splitting functionality. Please check the same.
If are on classic GL you cannot have profit center on Customer Line item.
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If you are having
Customer Account Dr 1000
To Income Account 1 100 Profit Center A
To Income Account 2 200 Profit Center B
To Income Account 3 500 Profit Center C
Which profit center do you want now in Customer Account??
In classic GL you do not have document splitting, hence, this CANNOT be achieved.
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Ravi

Income tax depreciation in india

Dear All,
How do we adress the income tax depreciation in India.
As we know the depreciation treatment for Income tax depreciation is a block concept...how do we adress that...
Could any one explain elaborately if possible...short and precise inputs are also most welcome...
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Existing group asset concept for income tax depreciation functionality was withdrawn with Note 738919.
Following limitations/restrictions are there in the existing process.
Limitations of Group Assets
Locking
Cap on the volume of transactions u2013 99,999
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Assets Acquired and Sold in the same year
Asset Block Retirement by Scrapping
Asset put to use date capture
Report Formatting Issues
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Income tax dedcution is not taking place on medical reimbursement .

Hi SAP-HR Experts .
I am facing a issue that for few employees Medical Exemption for incomeTax is not taking place for few employees ,
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a employee whose exemption is taking place /3m1 wage type generated , while for those employees for which exempted for Income Tax in not taking place /3m1 is not generating .
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having IT-589 , 2MER : 30,600.00 , for the duration of 01.04.2008 to 31.03.2009
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Thanks & Regards : rajneesh

Hi Sikinder.
I have checked the Log of payroll both Correct case 'Emp-X' and wrong case 'Emp-Y'
Both emps are of same department and same location .
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Income Tax in Off cycle payments

Hi Folks,
Please provide u r inputs for the following conditions
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2. Is it possible to make custom IT deduction in Off cycle payments, i.e the actual IT deduction for Bonus is Rs.1000, but i want to overwrite it by 1500 rsthru INVT rule. Is it possible -how?
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Regards,
Sekar

1.I don't want Income tax deduction for Off cycle payments, if i comment INBTD function and run the Off cycle payment, will the off cycle amount will be considered for Taxation in the subsequent month Regular Payroll.
If you comment taxation of off-cylce in standard SAP schema for the country, then you have to manually add this WT for taxation during regular processing.
2. Is it possible to make custom IT deduction in Off cycle payments, i.e the actual IT deduction for Bonus is Rs.1000, but i want to overwrite it by 1500 rsthru INVT rule. Is it possible -how?
Of course it is possible, but not recommended (as to change any standard IT/SI logic). You have to disable standard taxation and add deduction as you wish in payroll schema for off-cycle.
3.Is it possible to make deductions in offcycel, if so how?
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Client is saying that as per their existing SAP system, the Income tax calculation is made on Gross salary. And they are saying that if any additional taxable payout is made in a month to an employee, then the total tax on this additional payout should be paid by the employee in the same month. So basically his total tax would be the (general regular monthly tax + total tax on the additional payment), which as per them the system is not calculating correctly since October 2010.

Hi,
Thanks for your reply Jurgen & Remi. I am pretty new to Payroll & this is India Payroll.
Now, the issue is how should I proceed ahead.
1. The client says that the wage types are already configured in the system in such way that on certain wage types, the tax which is calculated is paid in the same month. Can u pls inform that which processing class & cumulation class do I need to check in Table 512w_d for this wage type.
2. As I need to see this whole functioning in Schema, pls guide as to where I should check this whole tax calculation in Schema.
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Looking forward to your reply.
Thanks a lot!!!
Edited by: SAP ST on Nov 25, 2010 7:24 PM

Income tax is not calculated After Total Income

Dear All,
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Basic-19500
HRA-13650
Performance-15000
LIC(IT0586 80C)-35215
Tution Fee(IT0586 80 C)-16800
Calculated PF-2340
CAlcualtion is done on the basis of 11 month
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Exemption U/S 10               107,250.00 (HRA Annual Ex)
Balance                        422,400.00
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Gross Tot Income               422,400.00
Agg of Chapter VI               77,755.00
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Tax on total Income             52,395.00
Tax payable and surcharg        53,967.00
Income Tax                       4,906.00
Kindly help me to resolve this issue am not a functional guy.
Thanks
Sandeep

Dear Siknder ,
                           I alredy check in it0002 it male.
I want to know how should i check in my payroll log what calculation is happening after my total income get.
And also how i can identify which finacial year calculation is been performed.

Income tax calculation

Dear All,
Presently In payroll system income tax calculation is based on allowance paid basis. but our client is required that is projected bais. for example
presently if am paying bonus through info type 15 rs 100,000 then system is deducting tax from remaining month in equal installment but client is required that it has to be deducted one time at this month.
please help me
BMS

Dear All,
I read the attached document in sap note i.e.1024284 in this sap note attached document is Guideline.pdf in this document they have clearly mention that ....
Introduction
There may be a need to apply flat tax rate on irregular payments for a particular month. If
they are required to be taxed separately it is not possible to do in the regular payroll run
in the system currently. Currently the system supports TDS at different rate on these
payments through offcycle payroll run. This document explains how this can be achieved
during regular run.
It means if we applied this note then system will deduct flat % on bonus amount if i am wrong please tell me the fact
BMS

Income Tax Calculation problem: Urgent Help Needed

Dear Gurus,
I am facing a unique problem. Our client has two incentives
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Waiting for an early reply.
Thanking You,
With Best Regards,
Pratik

Hi,
I am not understand your problem give your mb then i talk to you
mhpo

Income tax gross salary projection

Hi,
Income tax calculations upto Jan 2012, i.e 10th period gross salary calculations is calculating correctly, but the calculations for February 2012 shows the Gross salary only for three months ( i.e Jan 2012, feb 2012, Mar 2012).
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Madhu

Hi Madhu,
Do you have any rehiring or company code change for the pernr? Please go through the explanation below:
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Regards,
Nishtha

SAP Corporate Income Tax Functionality

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