Create Withholding Tax Returns for Non-Localized Countries in SAP Cloud Applications Studio

[nalin_sharma]

In the SAP Business ByDesign system, you can configure Withholding Tax contents only for SAP country versions. The purpose of this blog is to describe how to use SAP Cloud Applications Studio to configure and use Withholding tax for a country without an SAP country version.

 

Prerequisites

1. You have installed the latest SAP Cloud Applications Studio release for creating the tax content.


2. The country you want to configure is already available in the tax country table delivered by SAP.

 

Steps to create Withholding Tax Returns for Non-Localized Countries

1.1 Setup Business Configuration

1.1.1 Configure Tax Declaration Type

This configuration object allows you to define a Tax Declaration (return) Type for a country. To represent Withholding Tax Returns in the SAP Business ByDesign system, you must configure a tax declaration type code.

You can configure a Tax Declaration Type in the following way:

1. In the solution explorer, right-click the solution name and select Add New Item. Select Business Configuration node and then select Business Configuration Set.  The system opens the Business Configuration Wizard.


2. Under Business Configuration Object Type, select Use SAP Business Configuration Object. Provide a name and a description.


3. Under Business Configuration Object -> Name, select TaxDeclarationType from the list.


4. Click Next to open a new window.


5. Maintain the field values as shown below. Maintain a code, the country for which you want to make the changes and give a name for the Tax return.

1.1.2 Configure Tax Declaration Profile

The Tax Declaration Profile defines the configuration for tax returns. You must define the profile for each tax declaration type code and country combination.

In this configuration object, you can store the following settings:

• Assignment of tax types against a tax return type


• Assignment of tax events against a tax return type


• Grouping criteria for a tax return type


• Income types against tax return type and tax type.


• Summary declaration settings for a tax return type

You can create a tax declaration profile in the SAP Applications Studio by following the steps below:

1. Follow the steps 1 and 2 of section 1.1 above and continue with the steps below.


2. Navigate to Business ConfigurationObject -> Name and select TaxDeclarationProfile from the list.


3. Open the Tax Return Types Node and enter the values as below-
   
   
   
   • Tax Return Type: Enter the Tax Declaration Type that you have created in the step 1.1.1. Maintain the same Country as above.
   
   
   • Restricting Tax Return Type: Enter any of the parameters below:
   
   
   
   
   
   
   • Deferred Tax: Select the checkbox if you want to include deferred tax items in the tax return.
   
   
   • Reporting Tax Corrections: Specify if you want to include all items or only the corrected items when creating a correction return.
   
   
   • Level of Detail: Specify if you want to report the tax return items in sub-total manner or in summary manner.
   
   
   • Object Type Code: Enter 134 (This value is meant for Withholding tax).
   
   
   • Nil Return: Select the checkbox if you want to indicate whether a tax return should be created when there are no items to be reported.
   
   
   • State Relevant: Select the checkbox if you want to indicate that the tax return is state relevant.
   
   
   • Jurisdiction Relevant: Select the checkbox to indicate that the tax return is jurisdiction relevant.
   
   
   • Tax Reporting Unit Relevant: Select the checkbox to indicate that the tax return is tax reporting unit relevant.
   
   
   • Payment Relevant: Select the checkbox if this tax return is payment relevant.
   
   
   
   


4. Open the Tax Event node and enter the values as given below:


5. You don’t need to maintain anything in the Summery Layout node as this is not supported for Withholding tax.


6. Open the Group Criteria for Sub Totaling node and maintain the data as given below:
   
   
   
   • Enter the Country Code and Tax Return Type as above.
   
   
   • Grouping Section: Enter any numerical value >= 1. You can define as many sections as you want. These sections differ in grouping criteria. Each section has its own individual line in this node. Hence, if you have 2 sections defined, then there will be two lines in this node corresponding to each section.
   
   
   • Grouping Level: Enter any numerical value >= 1. Within a section, levels of grouping can be different. So, you may have 2 grouping levels/criteria sets for the same section.
   
   
   • Group1 to Group5: Select an appropriate code from the value help. These coded values represent the tax declaration item grouping criteria. You can specify a maximum of 5 grouping criteria.
   
   
   • Summary Required: Select the checkbox if you want to report the tax return in the summary type (currently not supported for Withholding tax).
   
   
   • Section Usage: Select the appropriate section depending on your business requirements to display the relevant layout in a tax declaration.
   
   
   • Regular Tax Items Relevance Indicator: Select the checkbox if you want to include regular tax items. Regular tax items get created for taxes included in supplier invoice, customer invoice etc.
   
   
   • Additional Split items Relevance Indicator: Select the checkbox if you want to include additional split items. Items which are added using the provided Badi are considered as additional split items.
   
   
   
   


7. Open the Tax Type node and enter the values as below-
   
   
   
   • Country/Region:  Specify the country for which you want to configure the tax type.
   
   
   • Tax Return Type: Specify the tax return type
   
   
   • Tax Type:              Enter a new tax type according to your requirements
   
   
   
   


8. Open the Income Type Node and enter the values as below:
   
   
   
   • Country/Region:  Specify the country for which you want to configure the tax type.
   
   
   • Tax Return Type: Specify the required tax return type.
   
   
   • Tax Type:              Maintain the Withholding tax type you would have created.
   
   
   • Income Type:       Select the appropriate income type from the value help.
   
   
   
   

1.2 Implementing BAdi

1.2.1 Check Master Data

You must implement the CheckMasterData BAdI to check on the master data and raise message if some master data is missing. The system implements this BAdI, during the creation of the tax return.

Follow the steps below to create the implementation:

1. In the solution explorer, right-click the solution name and select Add New Item. Select Enhancement Implementation and click on Add.


2. In the next screen give the namespace and BADI name as given below:


3. This BADI has 2 filter parameters – Country Code and Tax Declaration Type code. Maintain these filter parameters as shown below:


4. The importing parameter of the operation Check_Master_Data of this enhancement method has three parts, which are defined below:
   
   
   
   1. CompanyTaxArrangment :
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      

      CompanyID	ID of the company
      CompanyUUID	UUID for company
      SystemAdministrativeData
      TaxAuthorityCountryCode	Country of the Tax Authority
      TaxAuthorityInternalID	ID of the Tax Authority
      TaxAuthorityJurisdictionCode	Jurisdiction code of the Tax Authority
      TaxAuthorityRegionCode	Region code of the Tax Aauthority
      TaxAuthorityUUID	UUID of the Tax Authority
      TaxWithholdingRequiredIndicator	Indicator to set if the company can withhold taxes
      ValidityPeriod	The period between which the company tax arrangement will be valid

      
      
   
   
   2. TaxReturnArrangement :
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      

      CarryForwardRequiredIndicator	Is set if carry forward is allowed
      ElectronicSubmissionRequiredIndicator	Is set if the file is available for tax return
      ID	Tax Return Arrangement ID
      IsInitial	(NA)
      PaymentCalendarDayRecurrence	Provides the details on frequency of payment, period of payment like month or weekday selection.
      PrintFormRequiredIndicator	Is set if the print form is available for tax return
      ResponsibleBusinessPartnerUUID	UUID of the person responsible maintained at company tax arrangement level
      SupportingDocumentsSeparatelySubmittedIndicator	Set if the documents to be submitted separately from the tax return
      SystemAdministrativeData	Provides the details on creation date and time as well as last changed date and time (NA)
      TaxAdvisorID	ID of the Tax Advisor maintained at company tax arrangement
      TaxAdvisorUUID	UUID of the Tax Advisor
      TaxDeclarationCalendarDayRecurrence	Tax reporting recurrence details like yearly /Monthly reporting date /month etc.
      TaxDeclarationTypeCode	Tax return type code
      TaxPaymentRequiredIndicator	Is set if the tax return is payment relevant
      TaxRefundAmountTolerance	Tax refund amount /currency details
      ThresholdAmount	Threshold amount for reporting tax return
      ThresholdRelevanceIndicator	Is checked then threshold amount must not be blank.
      UUID	UUID for Tax Return Arrangement
      ValidityPeriod	Validity period of the tax return arrangement
      CorrectionDeclarationIndicator	Is set if the return created is correction relevant
      ProductTaxRelevantIndicator	Is set if the return is product tax relevant.
      VATGroupIndicator	Is set if the companies belong to the same VAT group
      EndDate	End date of the tax return run which created this tax return
      StartDate	Start Date of the tax return run which created this tax return
      WithholdingTaxRelevantIndicator	Is set if the return is Withholding tax relevant.

      
      
   
   
   
   


5. Save and activate the solution.

Summary

You can now create Withholding Tax Return arrangements for non-localized countries in the SAP Business ByDesign System.

 

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