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OHACN_TX201 - Define Tax Withhold Fast Formula (Obsolete)

OHACN_TX201 - Define Tax Withhold Fast Formula (Obsolete)

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In this step, you define the tax withhold fast formula which is set by the Tax Bureau of China to specify different tax rate in tax calculation.

Different employee tax types in Income Tax Infotype (0531)have different Tax Withholding Fast Formulas.

  • When the value in the TxGrp field is N/A, the tax withhold fast formula is applicable for the following employee tax types:
  • Residents

  • Chinese working abroad

  • Foreigners

  • Foreigners with high position

  • When the value in the TxGrp field is 1, the corresponding tax withhold fast formula is only applicable for the employee tax type casual workers.

If the employee tax type for an employee is casual workers and the employee's taxable income is 5000 CNY, the tax percentage and the progressive difference are as follows:

TxGRP Class Taxable income Tax perct Progressive diff Start date End date
1 1 0.01 20 01.01.1990 01.01.9999

The following tax withhold fast formula is used: Tax amount =taxable income * tax percentage -progressive difference. The tax amount is 1000.

The standard SAP system contains entries set by the Tax Bureau which you should use.

To assign a tax rate group to a special rule, see Master data -> Individual Income Tax -> Define Special Rule and Assign Tax Rate Group.






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