Core HCM capabilities in the localized version of SAP ERP for Egypt support global business best practices and local legal compliance to meet your end-to-end HR and payroll processing needs.

Legal Changes

Get online help and learn about legal changes* in the latest release of SAP ERP.

News and developments for Egypt

• Social Insurance Contribution Change (August 2016) –The pool contribution for social insurance (SI) in Egypt has changed. The solution has been adjust accordingly. For more information, please refer to SAP Note 2218704*.
• Release of Phase 4 (August 2016) – We have released Phase (4) of Egypt HCM Localized Product with the following enhancement:
  • Employee Salary Increment Report.

• List of Employee Leaves Report.
• Occupational Hazard Infotype
• End of Service (EOS) Calculation and Provisioning

For more information, please refer to SAP Note 2297526*.

For info about previous phases, please refer to SAP Notes 2118089, 2150259 & 2198380*

• Report Generation Utility (July 2016) – Reports Generation Utility is a new utility that helps in creating HCM reports in very easy steps and display output in an ALV or PDF format. For more details, please refer to SAP Note 2174367*.
• Country Version on Employee Central – Country version includes ISO code, currency, national ID, home address, personal information and job classification details.

Technical Information

• HR Renewal 2.0 - The latest support packages, details and delivery timelines are available in SAP Note 1965692*.
• Software Component Version: SAP_HRCEG 608

Highlights of the local version for Egypt: PDF

• Overview
  • SAP HCM Localization for Egypt Overview
  • Report Generation Utility for Legal Forms
• Webinars
  • SAP HCM Localization for Egypt Webinar
  • Report Generation Utility for Legal Forms Webinar
  • Payroll Control Center Overview Webinar

Payroll capabilities in the localized version of SAP ERP for Kuwait can help you simplify and integrate end-to-end payroll functions to meet all your HR and payroll processing needs.

Online Help and Legal Changes

Get online help and learn about legal changes* in the latest release of SAP ERP.

News and developments for Kuwait

• Report Generation Utility (July 2016) – Reports Generation Utility is a new utility that helps in creating HCM reports in very easy steps and display output in an ALV or PDF format. For more details, please refer to SAP Notes 2174367 & 2151128*.
• Salary Reporting (March 2016) – Pre-DME report now available to populate payroll information necessary for bank file generation mandated by MOSAL for salary reporting purposes. For more details, please refer to SAP Note 2274434

Technical Information

• HR Renewal 2.0 - The latest support packages, details and delivery timelines are available in SAP Note 1965692*.
• Software Component Version: SAP_HRCKW 608

• View the Highlights of the local version:  PDF
  
  
• Overview
  • Report Generation Utility for Legal Forms
• Webinars
  • SAP HCM Localization for Kuwait Webinar
  • Report Generation Utility for Legal Forms Webinar
  • Payroll Control Center Overview Webinar

Find all Kuwait-related documentation >

Payroll capabilities in the localized version of SAP ERP for Oman can help you simplify and integrate end-to-end payroll functions to meet all your HR and payroll processing needs.

Online Help and Legal Changes

Get online help and learn about legal changes* in the latest release of SAP ERP.

News and developments for Oman

• New Local Version on Employee Central (September 2016) – There is a new country version for Oman. Features covered include ISO code, currency, national ID, home address, corporate address, personal information, work permit information and job classification details. 
• Report Generation Utility (July 2016) – Reports Generation Utility is a new utility that helps in creating HCM reports in very easy steps and display output in an ALV or PDF format. For more details, please refer to SAP Note 2174367*.
• Oman Solution Release for PrS – For more information about the solution, please refer to the SAP Notes 1983375, 2007785 & 2059279*.

Technical Information

• HR Renewal 2.0 - The latest support packages, details and delivery timelines are available in SAP Note 1965692*.
• Software Component Version: SAP_HRCOM 608

Highlights of the local version for Oman - HCM:     PDF

• Overview
  • SAP HCM Localization for Oman Overview
  • Report Generation Utility for Legal Forms
• Webinars
  • SAP HCM Localization for Oman Webinar
  • Report Generation Utility for Legal Forms Webinar
  • Payroll Control Center Overview Webinar

Find all Oman-related documentation >

Payroll capabilities in the localized version of SAP ERP for Qatar can help you simplify and integrate end-to-end payroll functions to meet all your HR and payroll processing needs.

Online Help and Legal Changes

Get online help and learn about legal changes* in the latest release of SAP ERP.

News and developments for Qatar

• Qatar Q-Companies Localization (February 2017) – includes more functionalities, more flexibility and new features for HR and Payroll (HCM) as extension for Qatar public sector solution. This product is an extension to the Qatar public sector localization delivered in 2013 and will be the base for HCM solutions for any Q-company subsidiary. 
  The set of functionalities available in November 2016:
  Benefits & Allowances applicable, Benefit Eligibility Report for processing multiple employees (for processing allowances) Advances Claims Solution: new solution for Qatar Public Sector
  The set of functionalities available in February 2017: Termination of Service, Settlement, Job Elements and Salary Structure (Part of Public Sector),Time Management, Training and Development (Part of Public Sector)
  For more technical details and documentation, please refer to the following SAP Notes:
  SAP Note 2345602 – Qatar Public Sector Allowances & Benefits
  SAP Note 2372123 – Down port of Qatar Public Sector Allowances & Benefits
  SAP Note 2400472 – Qatar Public Sector HR Law 
  SAP Note 2378880 – EOS benefit and Leave Validation for Q-Companies 
  SAP Note 2426193 – Qatar: Settlement Workbench
  
• Report Generation Utility (July 2016) – Reports Generation Utility is a new utility that helps in creating HCM reports in very easy steps and display output in an ALV or PDF format. For more details, please refer to SAP Note 2174367*.
• Sick Leave Valuation since Joining (June 2016) – Employee shall be entitled to sick leave with pay for each year of his service. For more details, please refer to SAP Note 2311435*.
• New Country Version on Employee Central Payroll (June 2016) – The new country version includes the replication of country specific employee master data from EC to EC Payroll and country-specific mashups.
• Provision for EOS and Annual Leave (February 2016) – Enhancements for provisioning calculation functionality related to EOS and Annual Leaves. For more details, please refer to SAP Note 2277779*.
• Updates for WPS (January 2016) – Enhancements for WPS functionality such as ALV output for WPS data. For more details, please refer to SAP Note 2249057*.

Technical Information

• HR Renewal 2.0 - The latest support packages, details and delivery timelines are accessible from SAP Note 1965692*.
• Software Component Version: SAP_HRCQA 608

Highlights of the local version for Qatar:   PDF

• Overview
  • Report Generation Utility for Legal Forms
• Webinars
  • SAP HCM Localization for Qatar Webinar
  • Report Generation Utility for Legal Forms Webinar
  • Payroll Control Center Overview Webinar

Find all Qatar-related documentation >

Payroll capabilities in the localized version of SAP ERP for Saudi Arabia can help you simplify and integrate end-to-end payroll functions to meet all your HR and payroll processing needs.

Online Help and Legal Changes

Get online help and learn about legal changes* in the latest release of SAP ERP.

News and developments for Saudi Arabia

• Impact of COVID-19 on Time, Social Insurance and Visa Management in Saudi Arabia
• GOSI Salary Changes Can Now be Reported Monthly
• EC Payroll for Saudi Arabia is Now Mashup Free
• The Latest on Visa and Permits Management
• Integrating Visa and Permits Management with Muqeem

Highlights of the local version for Saudi Arabia:   PDF

• Localization Offering for Saudi Arabia 2020
• SuccessFactors Localization for Saudi Arabia Private Sector – Q2 2020
• SAP HCM Localization for Saudi Arabia Public Sector – Q2 2020

Customers Stories

• Hoshan Holding Saudi's First Adopter of SAP S4 HANA Public Cloud
• Almarai Implements SAP HR Solution to Increase Workforce Productivity
• Arabian Drilling HR Transformation with SuccessFactors

• Technical Information
• HR Renewal 2.0 - The latest support packages, details and delivery timelines are available from SAP Note 1965692*.
• Software Component Version: SAP_HRCSA 608
• HR Support Packages for EHP8

Find all Saudi Arabia-related documentation >

Payroll capabilities in the localized version of SAP ERP for South Africa can help you simplify and integrate end-to-end payroll functions to meet all your HR and payroll processing needs.

Get online help and learn about legal changes* in the latest release of SAP ERP.

Highlights of the local version:

View the Highlights: PDF

News and developments for South Africa

• Upcoming SAP HCM Localization Workshop for South Africa in July
  The HCM Steering Committee, together with the SAP HCM Localization Team, invites you to our next half-day workshop, where the focus will be on the updated legal changes for the SARS BRS August 2017 release and basic guidelines on how to configure the Payroll Control Centre. There will also be a special guest presentation on "Machine Learning" by Simon Carpenter (SAP Africa - Chief Technology Advisor). Further, we will continue to explore SuccessFactors with another system demonstration. This workshop invitation is extended to all SAP customers and partners. The workshop will be held in Johannesburg on 25 July, Durban on 26 July, and Cape Town on 27 July. More details about the workshop can be found here: Workshop Agenda.You may register for the workshop with the Registration Link.
  
• Upcoming SAP HCM Localization Workshop for South Africa 
  The HCM Steering Committee, together with the SAP HCM Localization Team, invites you to a half-day workshop, where the focus will be on updates to the Localization Roadmap, Legal Changes, Employee Central, Employee Central Payroll, SAP Payroll Enhancements, SAP Tips and Tricks and a Breakaway Session.  
  This workshop invitation is extended to ALL SAP Customers and Partners. The workshop will be held in Johannesburg on 22nd March, Cape Town on 23rd March, and Durban on 24th March.
  You may register for the workshop at Registration Link.

• Legal changes as per Budget Speech 2017
  In accordance with the South African Budget speech of 2017 and the resulting new legislation for the tax year 2018, legal changes have been made in system behavior related to tax rates, tax rebates, medical aid credits and fuel reimbursement rates. For more information, see SAP Note 2433579.

• Age identification of persons 65 years or older for processing tax claims and rebates (February 2017)
• Age identification has been automated so that staff members 65 years or older are considered for additional medical tax credit and/or secondary tax rebate even if the age letter indicator in infotype 0149 is not maintained. For more information, see SAP Note 2401183.
• Increase in Remuneration Proxy Threshold and Bursary Exemption Threshold (February 2017)
  Payroll constants BRSAL, BURHE and BURTH have been changed in the system effective 01.03.2016 to comply with increase in the Remuneration Proxy Threshold and Bursary Exemption Threshold notified in the Taxation Laws Amendment Act No.15 of 2016. For more information, see SAP Note 2418046.
  
• Changes in Employment Tax Incentive as per Taxation Laws Amendment Act 15, 2016 (February 2017)
  In compliance with the Taxation Laws Amendment Act 15 of 2016, effective September 2016 the actual monthly remuneration [ETI Gross amount (/1EG)] will be reported under SARS code 7002 instead of the deemed remuneration [Monthly Gross remuneration (/MGR)].Further, the employment tax incentive will not be calculated and generated after February 28, 2019.For information on the related system changes, see SAP Note 2416759.
• In accordance with the South African Budget speech of 2017 and the resulting new legislation for the tax year 2018, legal changes have been made in system behavior related to tax rates, tax rebates, medical aid credits and fuel reimbursement rates. For more information, see SAP Note 2433579.

Core HCM capabilities in the localized version of SAP ERP for United Arab Emirates support global business best practices and local legal compliance to meet your end-to-end HR and payroll processing needs.

Online Help and Legal Changes

Get online help and learn about legal changes* in the latest release of SAP ERP, and get online help for LOCHRSAE add-on.

News and developments for United Arab Emirates

• Tickets Benefit (January 2017)
  New solution is now released to manage tickets benefits without the need of using time evaluation in addition to new features such as correction.
  For more information please refer to SAP Note 2346940.
  For customers who need to migrate from the old solution (Leave Passage) to this solution, please refer to SAP Note 2400436.
  For more info about the sunset of the old solution, please refer to SAP Note 2384520.
  
• Report Generation Utility (July 2016) – Reports Generation Utility is a new utility that helps in creating HCM reports in very easy steps and display output in an ALV or PDF format. For more details, please refer to SAP Note 2174367*.
• Extending SI for GCC Nationals (June 2016) – Support for different contribution requirements for GCC pension funds for both private and public sector. For more details, please refer to SAP Notes 2300648, 2268351, 2289914, 2303745, 2300665 & 2312404*.
• GPSSA Bank File Generation (May 2016) – New functionality to enable the employer to generate a file containing contribution related info from payroll and master data for each employee. For more details, please refer to SAP Notes 2270732, 2295742, 2270734 & 2313832*.
• New Country Version on Employee Central Payroll (March 2016) – The new country version includes the replication of country specific employee master data from EC to EC Payroll and country-specific mashups.
• Support for Ratibi Card in WPS (February 2016) – Pre DME can now populates Ratibi card info for employees that do not have a bank account. For more details, please refer to SAP Note 2274382*.

Technical Information

• HR Renewal 2.0 - The latest support packages, details and delivery timelines are accessible from SAP Note 1965692*.
• Software Component Version: SAP_HRCAE 608
• Packages for LOCHRSAE 605 - The latest support packages, details and delivery timelines are available from SAP Note 1551074*.

Highlights of the local version for United Arab Emirates HCM

• PDF
  
• Overview
  • SAP HCM Localization for UAE Overview
  • Report Generation Utility for Legal Forms
• Webinars
  • SAP HCM Localization for UAE Webinar
  • Report Generation Utility for Legal Forms Webinar
  • Payroll Control Center Overview Webinar

Find all UAE-related documentation >

Core HCM capabilities in the localized version of SAP ERP for Australia support global business best practices and local legal compliance to meet your end-to-end HR and payroll processing needs.

Online Help and Legal Changes

Get online help and learn about legal changes* in the latest release of SAP ERP.

News and developments for Australia

• HR/PY User Group Meeting – Wednesday 30th October 2019.  2pm-3:30pm AEDT (Melb time)
  Please register to receive the Meeting URL here
  Get an overview of the upcoming STP Phase II from the ATO’s Director STP Policy, Admin and Content, Angela Lehmann.   
  There will also be a detailed demonstration of recent enhancements to the Generic Reporting Framework tool, which allows reconciliation between the CRT and ACRT tables.   
  An update on the Device Auskey replacement – Machine 2 Machine (M2M) Credentials that is mandatory from March 2020 will be presented.  Other topics will be presented and a Q & A session. 
  We will have two of our AU Indian Developers in attendance and also Cloud Platform experts. 
  **There are limited seats at SAP Melbourne office - please email matt.voce@sap.com to reserve a seat.  Or join the meeting after registering and receiving the meeting URL**
• The ATO is running a series of webinars, starting 5 February 2019, to help and support large employers/multinationals to transition into STP reporting.  
  These webinars are covering several topics that will provide great insight into some of the areas every large employer may have questions on, regardless if you are already submitting or in the process of going live.
  Details on the webinars and how to register can be accessed on the link below.
  Webinar series details: 
  https://www.ato.gov.au/Business/Single-Touch-Payroll/News,-events-and-resources/
  Register now: To register: click on the webinar topic link in the table for any event you are interested in attending and then click Register.
• SAP have released the ERP Single Touch Payroll solution.  Please refer to the SAP Master Note for more details: 2674330 - Master Note: New Cluster Table changes and Single Touch Payroll
• Single Touch Payroll (STP) Solution Demonstration 25/09/2018
  SAP presented an overview and update on STP. Please find the presentation here. 
  Please find all presentations and recordings from the webinar held 25th September 2018 via the following link.
  
  
• Overview and update on STP in August
  SAP presented an overview and update on STP in August.  Please find the presentation via the following link.

• Message for Customers that Process Pay for Australia and New Zealand (Sept 2018)
  New Zealand also has a similar legal change to STP.  It is called Pay Day Filing and is mandatory from 1 April 2019. The SAP solution is similar to the solution for STP and uses SAP Cloud Platform Integration to communicate with the authorities. The solution is released in the September Support Pack and full details can be found in SAP Note 2672190.  It is recommended that customers go live prior to the mandatory date.
• SAP wishes to advise our Australian Payroll Customers that the Single Touch Payroll (STP) solution delivery has been delayed by approximately one month until 11th October 2018.
  There were many factors that led to this decision and rest assured, it was not taken lightly. SAP understands that this change of delivery date could have an impact on customers, however, our priority is to deliver an accurate and appropriate solution. Our pilot customers are on track to start their testing in a few weeks. Due to the release date slippage, the deferral from the ATO has also been moved back one month until 31st May 2019. The ATO have provided Amended Deferral specific letters for SAP On-Premise customers on versions ECC6.0, ECC6.04, ECC6.08 and ECP customers in the cloud on ECC 6.08. Please note that all Enhancement Packs are specific to ECC releases, and therefore by default are included in the deferral. 
  Please click on the following links that contain these letters from the ATO for your reference:  ECC6.0, ECC6.04, ECC6.08 and ECP customers in the cloud on ECC 6.08

• The 2018/19 tax rate changes are planned to be available start of business, Friday 29th June.  Delivery will be via SAR files for all supported ECC releases (608/604/600). These changes contain the tax cuts passed late last week.
• The legislation to vary the tax rates for the 2018/19 year has not passed both houses of parliament
  The legislation to vary the tax rates for the 2018/19 year has not passed both houses of parliament, and therefore the standard thresholds/coefficients and HELP/SFSS could have 2 different sets of values. SAP will not deliver any changes until the legislation is passed. This could be after the start of the new financial year; however it is out of our hands. As soon as we know final rates etc. SAP will update the market on planned delivery time frames. Rates will stay as is for the time being.
• EOY 2017/18 and STP Solution Overview (May 2018):
  Presentations of the webinar held on the 16th May 2018 can be found at the following links: EOY 2017/18and the Single Touch Payroll (STP) Solution overview
  Check out the recording!
• Single Touch Payroll (STP) Update (April 2018)
  STP Solution Demonstration - SAP is planning for solution demonstrations either in late April or early May 2018. We will keep you updated on this.
• New average gross for marginally taxed termination payments and taxation - Non-CE
  As per the ATO guidelines, if an employer pays an amount to an employee for unused leave on the termination of their employment, then the payment should either be taxed at the rate of 32% or should be marginally taxed based on the table given by ATO (Schedule 7 – Tax table for unused leave payments on termination of employment).
  Currently, SAP payroll uses the average earnings (/109) for the marginally taxed termination payments. This average does not include additional payments like bonuses.
  The new average will include additional payments like bonuses so that payroll calculates the marginal tax on termination payments correctly. 
  Summary of changes:
  - A new gross average wage type (/129) has been introduced. It will contain additional payments.
  - It will be used only in the marginal taxation of termination payments.
  - There is no change in the taxation of additional payments (bonus and XFY back payments). These will continue to be taxed using /109 as per ATO NAT 3348.
  - SAP Note 2599851 has been released for this changes
  
  It is mandatory to have the changes of this Note in your system before running the first payroll run for financial year 2018-19. The changes will be effective from 01/07/2018. For more details, please refer to the SAP Note 2599851.

• 2599851.Single Touch Payroll (STP) Update (Feb 2018) 
  Development of the STP solution continues as planned and is on track for the September 2018 delivery to all customers. The new ebMS3 adaptor is being tested with the ATO External Vendor Testing Environment systems (EVTE).  SAP is planning to announce to market the SCP (SAP Cloud Platform) licensing options in the next month (March 2018). Please remember that SAP is planning to deliver a fully integrated solution: 
  - executing your payroll, storing data in new tables for STP 
  - extracting and validating STP related data 
  - transforming this data to the required XML payloads
  - sending and receiving ebMS3 messages to/from the ATO. 
  SAP is planning for solution demonstrations during March 2018. We will keep you updated on this.
  
• Single Touch Payroll (STP) Minimum requirements (Feb 2018)
  For the minimum software requirements for all supported releases, please refer to the following link. Note that the solution will only be available via CLC/HRSP (planned September 2018), not individual notes. Customers will need to load the May 2018 sync-point HRSP for this September release, and this will have stack level implications.
• Single Touch Payroll (STP) Deferral Update (Feb 2018)
  The ATO have provided specific letters for SAP On-Premise customers on versions ECC6.0, ECC6.04, ECC6.08 and ECP customers in the cloud on ECC 6.08. Please note that all Enhancement Packs are specific to ECC releases, and therefore by default are included in the deferral. Please click on the following links that contain these letters from the ATO for your reference:
  ECC6.0, ECC6.04, ECC6.08 
  Also, please note as documented in the letters that customers do not need to contact the ATO if they will be reporting via STP by the 30/4/2019 or the first payroll immediately after this date.  
  
• Minimum HRSP for 2017/18 EOY (Jan 2018)
  See SAP Note 2591815 (Announcement Note (AU): Minimum HRSP/CLC levels for implementing 2017/2018 EOY changes) has been released. The minimum as per the note is the November 2017 Sync-point.  Please also refer to the Support Portal for other notes released since the Sync-point that might require implementation.
  
• Single Touch Payroll (STP) Deferral Update (Jan 2018)
  The ATO have provided SAP with the Deferral Reference Number (DRN) and Deferral Date.
  Only ECC6.0, ECC6.04 and ECC6.08 versions of SAP Payroll (including all  EHPs) for AU and those who are receiving support from SAP on those versions will be covered by the DRN. 
  Additional information
  Below the ATO have listed the product version, deferral date and Deferral Reference Number. Customers with 20 or more employees that use any of these product versions will have until the first pay event falling on or immediately after the deferral date to submit their first Single Touch Payroll report.
  Employers that are unable to start their Single Touch Payroll reporting by the deferral date will need to apply to the ATO for a separate further deferral. Similarly, if the ATO has not already granted a deferral for the product version they are using, and they will not be ready to start Single Touch Payroll reporting from 1 July 2018, they will need to apply directly to the ATO for a deferral. 
  Failure to lodge on time penalties will not be applied if Single Touch Payroll reporting obligations are met in accordance with the approved deferral date. Where an employer has been granted a deferral they must continue to meet their existing lodgement and payment obligations (issuing payment summaries and submitting PAYG withholding Payment Summary Annual Reports, BAS for small and medium withholders, electronic payment for large withholders), unless they have been granted separate relief from these obligations.
  
  Product Versions / Deferral Date / Deferral Reference Number: 
  ECC 6.0 On-premise     30/04/2019     66 361 489
  ECC 6.04 On-premise   30/04/2019     66 361 489
  ECC 6.08 On-premise   30/04/2019     66 361 489
  ECC 6.08 Cloud            30/04/2019      66 361 489
• Single Touch Payroll Update (Nov 2017)
  A copy of the presentation (STP Solution Overview Oct 2017) held during the roadshow during the week commencing 30/10/2017 can be found via the following link.
  The iflow creation video in the presentation can be referenced via the following link. A link to the recording from the meeting held in Canberra can be found at:  https://sap.apj.pgiconnect.com/p304mwfy5oy/
  
• Single Touch Payroll Update (Sept 2017)
  SAP has announced an initial high level solution. With incomplete business and technical design details from ATO, the solution will be refined as details emerge. Take a look at the PDF!
• 2016/17 Tax Thresholds and Limits released (May 2016) - SAP has released the 2016/17 PAYGW tables and Tax Thresholds and Limits via SAP Note 2319426*. SAR files are attached to the note as well as manual instructions. With the government in caretaker mode due to the federal election being called, only the HELP and SFSS PAYGW coefficients will be changing. Superannuation quarterly ceilings, Termination tax free limits for redundancies will also increase.
• 2016/17 Tax Thresholds and Limits update (May 2016) - SAP plan to have the 2016/17 Tax Thresholds and Limits available to customers start of business 30th May 2016. With the government in caretaker mode due to the federal election being called, only the HELP and SFSS PAYGW coefficients will be changing. Superannuation quarterly ceilings, Termination tax free limits for redundancies will also increase.
• 2013 Super Solution Update (May 2016) - Customers MUST have implemented the 2013 Super Legal changes prior to the end of the 2015/16 fiscal year, otherwise your payroll will error. Refer to SAP Note 2160883* and the presentation titled “Super 2013 Update (May 2016)”. Note that this solution is required for all customers.
• EOY 2015/16 (April 2016) - The minimum HRSP level for the 2015/16 financial year is the November 2015 sync-point HRSP (e.g., Release 604 HRSP 93). Refer to SAP Note 2268612* for EOY information. Customers MUST have implemented the 2013 Super Legal changes prior to the end of the 2015/16 fiscal year, otherwise your payroll will error. Refer also to SAP Note 2160883* and presentation titled "Super 2013 Update” for a detailed description of the new solution.

Highlights of the local version for Australia

This file will be available, soon.

Find all Australia-related documentation >

Since its launch in the Chinese market, SAP ERP has been providing software and services for more than 2,000 enterprises and many domestic and global implementation partners in China.

Online Help and Legal Changes

Get online help and learn about legal changes* in the latest release of SAP ERP.

Important Notes for Legal Changes

More information regarding the HCM legal changes for China is found in SAP Note 1811538*

• Important Notes for Legal Changes 2018
  More information regarding the HCM Localization for China can be found in HCM Localization for GCN. In case you do not have access, please send the request to sherry.xie@sap.com
  
  
• New tax exemption and the tax table of Individual Income Tax effective from Oct. 1, 2018 (September 2018)
  On August 31, 2018, amendments to the Individual Income Tax Law (IIT Law) have been passed by the Government of China. The new IIT law will take effect with full implementation from January 1, 2019. According to the law, from October 1, 2018 to December 31, 2018, the new standard exemption amount will increase to CNY 5,000 and the new tax table converted by month will be implemented for income from wages and salaries. The SAP Note 2691180 provides you with the relevant system changes to address the above legal change which takes effect from October 1, 2018 to December 31, 2018.
  
  
• Tax Deferring on Commercial Pension Insurance effective May 1st 2018 (June 2018)
  The China government published the document regarding the tax deferring on commercial pension insurance for some pilot cities effective May 1st 2018. The cities (Shanghai, Xiamen, and Suzhou industry Park) mentioned in the document are related to almost each of our clients. The SAP Note 2635715 provides you with a solution to tax exemption on Commercial Pension Insurance that suits the requirements of the pilot plan.
  
  
• Termination EE and Last Working Date in tax report for GTSⅢ (May 2018)
  According to the requirement from GTSⅢ, further information needs to be included when declaration. 
  -  e.g. Last working date, ID type, and ID number for SI/PHF/Tax report etc.
  The planned release with 2 phases will include the enhancement for:
  1. Add sub node for termination EE under node “income tax basic info”; Add column "Last working date"
  2. Add fields of ID type and ID number for SI/PHF/Tax report respectively in infotype 0529. If the fields are maintained, the priority is higher than current logic.
  3. Add field "Shareholder/Investor" in infotype 0529, and add the responding column in tax report.
  4. Download button for ALV file, to download the income from the different category.
  
  The SAP Note 2652542 provides the system enhancements to meet the requirement above.
  
  
• China ID requirements for Statutory Reports (May 2018)
  According to the regulations in China, national ID number, passport number and entry to mainland China ID for foreigner employee are required for the statutory reports of social insurance and public housing fund (PHF). 
  For an employee who is the resident of Hong Kong, Macau or Taiwan, they participate in the unified use of social insurance 'Hong Kong and Macao residents to travel to or from the mainland' or 'Taiwan resident permits from the mainland' (here in after collectively referred to as "pass") as a unique document for identification code. The entry rules of 'ID number' will be:
  (1) Hong Kong: (HKG) + (0) + pass (2-9), for example: pass number is H1234567800, entry number is: HKG012345678.
  (2) Macau: (MAC) + (0) + pass (No. 2-9).
  (3) Taiwan: (TWN) + (0) + Pass (No.1-9)
  
  The SAP Note 2652466 provides features to determine the priority of identification number for China PHF/SI declaration report (HCNCCBD0), Public housing fund result screen list (HCNCPHF0), and Social Insurance Contribution Data (HCNCSI00) reports.
  
  
• Tax reduction in report HCNCTXM0 (February 2018)
  SAP Note 2603076 is released for supporting the tax reduction for disabled staff, which is a fixed amount (470CNY) per month based on the regulatory requirement in Shanghai.
  
  
• Tax calculation of incidental income (January 2018)
  According to the regulations, the following individual income tax rates need to be included in the payroll solution:
  1. For incomes from author's remuneration, the flat tax rate is applicable and the tax rate is 20% and a 30% tax deduction shall be applied to the amount of tax payable.
  2. For incomes from remuneration for labor services, the flat tax rate is applicable and the tax rate is 20%. If a single payment of remuneration for labor service is excessively high, an additional proportion of tax may be levied thereon, and the concrete measures shall be provided for by the State Council.
  3. For incomes from royalties, incomes from interest, stocks dividend, and bonuses, incomes from the lease of property, incomes from a transfer of property, occasional incomes and other incomes, the flat tax rate is applicable and the tax rate is 20%.
  SAP Note 2622224 is released for supporting the Individual tax calculation for above income categories.
  
  
• Labor Occupational Risk Insurance Rate Adjustment for the Year 2016 (January 2016) - SAP Note 2268321* provides information about the new rate of Labor Occupational Risk Insurance, which is effective as of January 1, 2016.
• Employee Stock Transfer Income Tax listed on Declaration Form (January 2016) - SAP Note 2263177* enhances the report HCNCTXD0 to fulfill the legal requirement of displaying the tax for stock transfer within or outside China listed on declaration form.
• Tax Exemption for Supplementary Public Housing Fund Contributions (October 2015) - According to the tax authority, if the upper limit of tax exemption for the public housing fund (PHF) contribution is greater than the PHF contribution, then the remaining portion of the upper limit is used as the tax exemption for the supplementary PHF contribution. Detailed information can be found in SAP Note 2213024*.

Highlights of the local version for China

• View the Highlights of the local version:  PDF

Find all China-related documentation >

Core HCM capabilities in the localized version of SAP ERP for Hong Kong, China support local legal requirements and business best practices, and are included in the standard local version of SAP ERP.

Important Notes for Legal Changes

More information regarding HK legal changes for HCM can be found in the annual announcement SAP Note 1811594*

• Important Notes for Legal Changes 2018
  More information regarding the HCM Localization for Hong Kong, China can be found in the JAM group HCM Localization for GCN.
  In case you do not have access, please send the request to sherry.xie@sap.com
  
  
• 2018 Requirement specifications for submission of form IR56B, IR56E, IR56F and IR56G (February 2018) 
  Hong Kong, China Inland Revenue Department (IRD) released new specifications for the IR56B, IR56E, IR56F, and IR56G forms, effective starting from the tax year of 2018.
  The SAP Note 2630783 updates the layout for the IR56B, IR56E, IR56F, and IR56G forms.
  
  
• Monthly rate of fixed income for Hourly Rated in IR56E 11(a) (February 2018)
  HK IRD confirms and advises that it is required to state in 11(a) Monthly rate of fixed -income or state "hourly rate" to indicate that the amount specified is not a monthly amount but an hourly rate. The SAP Note 2617794 enhances the report to indicate the unit in hour for part-time employees.
  
  
• The SAP Note 2617794 enhances the report to indicate the unit in hour for part-time employees.IR56B: Report Former Employees’ Stock Option Gains After Termination of Employment (February 2016)
  According to the Inland Revenue Department (IRD), for the gains realized by former employees after the termination of employment, the employer should report the share option gains under item 11(j) on IR56B in the year of assessment during which it was realized. For more information, visit the HK government site.

SAP Note 2279494* enhances the Employer’s Return of Remuneration and Pensions for Tax Years (HHKCTXB0) report. You can use this program to report the stock option gains after the termination of employment. When you run the report HHKCTXB0, select the Former employee checkbox on the selection screen.

• IR56B: New PDF Form Since 2015 (August 2015)
  The Inland Revenue Department (IRD) released new specifications for the computerized IR56B form (Employer's Return of Remuneration and Pensions for Tax Years). SAP Note 2194609 provides a new PDF form (HR_HK_IR56B2015) for the IR56B form, which complies with the new specifications. You can use this PDF form since 2015 and it is only available in release 604 and later versions.
• IR56G: New PDF Form Since 2015 (August 2015) - The Inland Revenue Department (IRD) released new specifications for the IR56G form (Notification by an Employer of an Employee Who Is About to Depart from Hong Kong). SAP Note 2194067* provides a new PDF form for the IR56G form.
• View the Highlights of the local version:  PDF

The localized version of the SAP ERP Human Capital Management (SAP ERP HCM) solution for India supports global business practices and Indian tax compliance to meet all your HR and payroll processing needs.

Online Help and Legal Changes

Get online help and learn about legal changes* in the latest release of SAP ERP.

India Localization:  The Intelligent Enterprise

News and developments for India

Missed some news? Take a look into the news archive!

• Upper limit for employer retirement scheme contributions for employees with intercompany transfer.
  In the event of an intercompany transfer of an employee, changes are made in the system to consider all the employers’ contributions towards the retirement schemes to compute the upper limit of such contributions which is considered as perk, and is used in further payroll calculations.
  For more information, refer to SAP Note 3030068
• Union Budget Changes 2020-2021: Section 80EEA claim eligibility extension.
  As per the finance bill 2021, presented by the central government, the system is enabled to extend the eligibility to claim deduction under section 80EEA(interest paid on home loan for affordable housing), for loans sanctioned up to 31st March 2022.
  For more information, refer to SAP Note 3034911
• Labels for Evidence/Particulars details of LTA in Form 12BB
  The system is enabled with the option to customize the labels of the Evidence/Particulars section of LTA such as 'Journey Start Date', 'Journey End Date', 'Journey Start point', 'Destination', 'Mode of travel', 'Class of Travel' and 'Ticket Numbers' in the Form 12BB.
  For more information, refer to SAP Note 3020224.
• Position Text and Employee Number on Form 12BA
  The system is enabled with the options to:
  - Accommodate the designation text of an employee to fit up to 80 characters on the Form 12BA
  - Customize the employee ID of the employee, if there is a need to display this customized ID on the Form 12BA
  For more information, refer to SAP Note 3018670.
• Stoppage of NPS contribution and contribution after purchase of annuity
  The system is enabled with the options to:
  
  - Stop the employer and employee NPS contributions of an employee in the last month, when an employee is getting retired. These contributions are paid to the employee’s bank account by the employer along with the remuneration the employee is eligible to receive.
  
  - Stop the NPS contributions, if annuity is purchased by the employee. The employer NPS contribution and arrears (if any) are added to the taxable income of the employee and paid by the employer.
  For more information, refer to SAP Note 3003605

• Exemption amount not forming after implementing SAP Note 2977955
  After implementing SAP Note 2977955, the system is not computing the leave encashment exemption for terminated employees. A fix is provided for this issue as the terminated employees are eligible to get this benefit.  
  For more information, refer to SAP Note 3005423.
• Taxation of Income from Dividends
  The Dividend Distribution Tax levied on dividend income is scrapped with effect from beginning of the financial year 2020-2021 and the dividend income from shares and mutual funds will be taxable in the hands of the recipient at the applicable income tax slab rates for an individual.
  For more information, refer to SAP Note 2996217
• No reversal of leave encashment exemption in case of rehire
  When an employee is terminated from the services of a company and rehired, while calculating the overall tax liability of the employee for the accounting year, the leave encashment exemption provided at the time of initial termination is considered.  
  For more information, refer to SAP Note 2977955
• Applicability of NPS for Section 89
  When there is a cross financial change in the employee or employer NPS contribution, the system will consider the delta of this NPS contribution from employee and employer from the previous financial year in the current financial year for the Section 89 calculations.
  For more information, refer to SAP Note 2952772.
• Consideration of termination month's salary for calculating gratuity exemption
  When the employee is covered under the gratuity act, the salary of the month in which the employee was terminated is considered for calculating gratuity exemption, irrespective of the date of termination in that month. When the employee is not covered under the gratuity act, the salary of the month in which the employee was terminated is not considered for calculating gratuity exemption irrespective of the date of termination in that month.
  For more information, refer to SAP Note 2971878.
• Deductions under Section 80G
  When a donation is made to special relief funds and charitable institutions, the amount donated can be claimed under Section 80G. The individual can claim either 50% or 100% of the amount donated as a deduction, when the ‘without upper limit’ clause is applicable without any other limitation.
  For more information, refer to SAP Note 2956889.
• Reporting of gross salary arrears due to cross financial year retro under multiple TAN
  The arrears that are generated during the cross financial retro payroll run can now be reported only in the gross salary for the TAN/company code in which these arrears were generated, in Form 16 and Form 24Q (for quarter 4).
  For more information, refer to SAP Note 2945156.
• Resolution for the runtime error due to the new surcharge computation module
  After implementing the SAP Note 2911678 for withdrawal of enhanced surcharge on income under section 111A and 112A, you may encounter the runtime error 'CX_SY_DYN_CALL_PARAM_MISSING' while executing payroll. This issue has been fixed.
  For more information, refer to SAP Note 2944672.
• Minimum amount per contribution to NPS 
  Based on the value of the new Check monthly NPS contribution (CMNPS) payroll constant, the system now decides whether it should consider the monthly NPS contribution or not for the employee if the total contribution is less than the limit. 
  For more information, refer to SAP Note 2939892.
• ESI deduction for terminated employees during full and final settlement
  Based on the value of the new ESI Contribution (ESICN) payroll constant, the system now deducts the ESI contribution for the employees who are terminated in April or October, which happens to be the first month of the two contribution blocks for ESI contribution, and payroll is executed in subsequent months for the full and final settlement of these employees. 
• For more information, refer to SAP Note 2930361.
• Rounding off 'Years of Service' as per gratuity act
  In the case of employees covered under the payment of Gratuity Act, when an employee is in employment for a part of the year such that the number of months exceeds six(even by just a few days), then the year is considered for calculating ‘completed year of service’. If the number of months is below six, then the year shall be ignored for the purpose of calculation of exemption limits for gratuity received by employees covered under the Gratuity Act. 
  For more information, refer to SAP Note 2926489.
• FVU Reconciliation Tool
  The Form 24Q .txt e-file can be validated using the File Validation Utility provided by the NSDL e-Gov and if there are any errors reported, the e-File Consolidation Program for Form 24Q (HINCF24C) report can be used to rectify these errors. The report can also be used to reconcile the Form 24Q data with the payroll results to ensure that the generated Form 24Q is accurate.
  For more information, refer to SAP Note 2884011.
• Withdrawal of enhanced surcharge on income under section 111A and 112A
  The enhanced surcharge levied by Finance (No. 2) Act, 2019 on tax payable at special rate on income arising from the transfer of equity share/ unit referred to in section 111A and section 112A of the Income-tax Act,1961 is withdrawn from the financial year 2019-20.
  For more information, refer to SAP Note 2911678.
• COVID19 - Reduction in EPF rate for 3 months
  As a part of the Self-Reliant India Movement proposed by the government, there will be reduction in the EPF contribution of the employer and the employee for three months. 
  For more information, refer to SAP Note 2927722.
• Changes for professional tax in Maharashtra for senior citizens.
  In the state of Maharashtra, employees who have completed the age of sixty-five years, are exempted from paying professional tax. 
  For more information, refer to SAP Note 2925929.
• Changes in drop down values for ‘Select house property’ in the ITD application.
  The options available to select from in the ‘Select house property’ drop down under the Income from other sources section in the ITD application are changed to make it self explanatory to the users. For more information, refer to SAP Note 2915828.
• Budget 2020-2021: Calculation of loss under Section 24
  As per the finance bill 2020 the, loss under the head income from house property, for rented house shall not be allowed to be set off under any other head. 
  For more information, refer to SAP Note 2915769.
• Budget 2020-2021: Limit of 7.5 lakh on tax-free employer contribution to retirement funds.
  As per the finance bill 2020, a combined upper limit of INR 7,50,000 towards tax-free employer contribution of retirement funds like NPS, superannuation fund and recognized provident fund has been proposed. Apart from this, any excess contribution by the employer towards retirement funds is proposed to be taxable. 
  For more information, refer to SAP Note 2918077.
• ITD: Selection of New Regime cannot be changed during the year
  At the start of every financial year, the employer processes the salaries of the employees based on the old tax regime as the taxation option, if the employee does not select the new tax regime as the taxation option. If an employee selects the new tax regime as the taxation option in the Income Tax Declaration tool, it cannot be reverted back to the old tax regime for that financial year. For more information, refer to SAP Note 2919107.
• Maintain gender as ‘Transgender’
  The gender can now be maintained as ‘Transgender’ in the Family Data (IT0021) infotype. There are some necessary changes that need to be made in the system to be able to maintain the gender as ‘Transgender’ for the employees.
  For more information, refer to SAP Note 2741666.
• New SAP HCM Payroll India Monthly Newsletter
  To get regular updates on hot news and top information, SAP Notes released, quick links, the current month’s Support Packages, good-to-know information, next generation support, tips & tricks, etc. Subscribe to the SAP Payroll India Newsletter today. For more details, see KBA 2758160 (SAP HCM Payroll India Monthly Newsletter - Product Support)
• File Validation Utility 6.6
  A new version of the File Validation Utility which is applicable with effect from 28 February 2020 is released by the government, wherein a few new fillers are added in the 'Deductee Details'.
  For more information, refer to SAP Note 2905338.
• HRA calculation on 'when changed' basis
  The HRA exemption can now be calculated on a ‘when changed’ basis for the employees. There are some necessary changes that need to be made in the system for the system to consider the relevant period for the computation of the HRA exemption. For more information, refer to SAP Note 2857031.

• ESS advanced claims- Form 12BB E-signature
  The employees can view the evidences submitted for the various investments on Form 12BB. They can also digitally sign this Form 12BB in the Income Tax Declaration application, before the Form 16 is issued to them. For more information, refer to SAP Note 2843176.
  
  
• India payroll – Changes related to Union Budget 2020-2021
  The details of the India payroll changes related to the Union Budget 2020-2021 can be found here
• Deletion of unprocessed claims and IT declarations
  As the tax deductions/exemptions declared and claims made by the employee for the current financial year are no longer valid after that, such unprocessed declarations and claims should be deleted at the end of the year. The system has been updated accordingly. For more information, see SAP Note 2754240.
• Display Section 80/80C declarations along with submitted proofs
  The system has been updated so that you can view an employee’s Section 80 and Section 80C investment declarations along with the proofs submitted for the same without accessing the self-service portal. For more information, see SAP Note 2767681.
• Status change of IT declarations and claim request
  The HINUINFU report used to sometimes indicate that information about income tax declarations and claims was successfully updated in the relevant infotype(s) although it was not. The system has been updated to change the status of such declarations/claims from “To be Processed” and “Processing Complete” to “Approved” so that they become available for processing again. For more information, see SAP Note 2767638.
• Labour Welfare Fund for Punjab
  As per the amendments made to the Punjab Labour Welfare Fund Act, 1965 on March 14, 2019, the following is now applicable:
  - Each employee shall contribute to the Labour Welfare Fund 0.2% of his basis, subject to a limit of INR 25.
  - Each employer shall contribute to the fund every month twice the amount contributed by the employee.
  The system has been updated in accordance to this. For more information, see SAP Note 2866624.
• No rounding of leaves earned for leave encashment exemption.
  One of the factor to calculate Leave Encashment Exemption is to convert no. of leaves earned in days to no. of months, by dividing it with 30. Previously, this factor was rounded, but as per the new requirement no rounding is done to the factor.
  For more information, refer to SAP Note 2826381.
• No employer contribution for disabled employees for 3 years 
  The employer is exempted from paying the employer's share of ESI contribution on the wages of disabled employees for a certain duration. The employer is exempt from paying ESI contribution for a maximum of three years from the start date of the contribution period of an employed disabled person. For more information, refer to SAP Note 2767073.
• Budget 2019 changes in HCM
  The following changes are proposed in the budget of July 2019:
  1. To increase the surcharge on income tax. The Revised surcharge slabs are:
  • I. 50 lakhs - 1 crore = 10%
  • II. 1 crore - 2 crores = 15%
  • III. 2 crores - 5 crores = 25%
  • IV. > 5 crores = 37% 

2. Introduction of Section 80EEB: 
Deduction is allowed on interest paid up to Rs. 1.5 lakh on loans taken from any financial institutions to purchase Electric Vehicles, subject to the following conditions:

I.  Loan should be taken between 01.04.2019 and 31.03.2023 and

II. The assessee should not be owning any electric vehicle as on the date of sanction of the loan. 

For more information, refer to SAP Note 2815788

• Madhya Pradesh Professional Tax change
  For Professional Tax computation, new slabs and corresponding deduction amounts are introduced by the Madhya Pradesh Government. Professional Tax Basis is computed annually (using projection) and deductions are made every month. Professional Tax slabs for Madhya Pradesh are as follows:
  Annual Salary or wages / Tax per month
  • Up to 2,25,000:    Nil
  • Up to 3,00,000:    1500
  • Up to 4,00,000:    2000
  • Above 4,00,000:  2500

For more information, refer to SAP Note 2763732

• Income Tax Exemption for Retrenchment Compensation
  As per Section 10 (10B) of The Income Tax Act, 1961, compensation received at the time of retrenchment is exempted from tax to the extent of lowest of the following: 

1. An amount calculated in accordance with the provisions of Section 25 F(b) of The Industrial Dispute Act, 1947.

2. Any amount specified by the Central Government via a Notification, Rs. 5,00,000 being the amount notified at present.

3. Actual amount received.

For more information, refer to SAP Note 2763688

• ESI contribution reduced for both Employee and Employer

Effective from July 01, 2019, employee ESI contribution is reduced from 1.75% to 0.75% and employer ESI contribution is reduced from 4.75% to 3.25%.  For more information, refer to SAP Note 2812803

• Send Form 2f10k as an e-mail attachment
  With effect from FY 2018, Form 16 - Part B can be downloaded from Traces. In case Form 16 is downloaded from Traces, point number 2f and 10k details are missing in the Form 16. A provision is provided in the system to download and send the details of 2f and 10k separately as an attachment along with Form 16 Part A and Part B. For more information, refer to SAP Note 2803810.
• Part B of Form-16 provided without item nos. 2(f) and 10(k)
  A deductor who is opting to download Part B of Form 16, they will be provided without item nos. 2(f) and 10(k). Hence, an annexure format is provided in the system to enable employers to provide details of item nos. 2(f) and 10(k) for the employees. In Form 16 report (HINCF160) selection screen, a new check box 'Print 2f and 10k Details' is created to print the details of section 2f and 10k. Unselect the checkbox 'Print 2f and 10k Details'  to print the Form-16 Part B. Changes have been made to meet this requirement. For more information, refer to SAP Note 2796901.
• A new layout for Form-16 Part B. 
  A new layout for the Form-16 Part B has been released for all the customers. Few columns and fields are now updated to ensure detailed and correct filing. For more information, refer to SAP Note 2788207.
• A new version of the FVU (File Validation Utility) is applicable with effect from May 12, 2019 and is released by the government. 
  Validations related to new fields as per the Income Tax Department (ITD) Notification No. 36/2019 has been incorporated in this FVU version. The following changes are made:
  1) Few columns are added under Annexure-II of form 24Q and ‘Salary Details Record’. For more information, refer to SAP Note 2791110 and SAP Note 2796716.
• Inclusion of components to form the Basis for PF deductions as released by the government. 
  1) Previously, organizations considered only the basic and dearness allowance paid to the employee for calculating the eligible wages for deducting EPF. But, after the supreme court judgement dated 28.02.2019, if a particular allowance is universally paid by various employers or is paid to all the employees of an establishment without any reference to the quantum of efforts put in by such employee or the quantum of the output, then the same takes the form of salary/ dearness allowance and needs to be included for the purpose of determining the quantum of PF.
  2) In case of LOP, if an employee’s Basic salary prorates and becomes less than the Eligible Pay and simultaneously the EPF Basis is more than the Eligible pay after proration, then the Eligible Pay forms the basis for PF Deduction. 
  Changes have been made to meet this requirement. For more information, refer to SAP Note 2778502 and 2789393.
• A new version of the FVU (File Validation Utility) is applicable with effect from April 12, 2019 and is released by the government. 

The following change is made in the field-level validation for the field ‘Deduction under section 16 (ia)’ under Annexure II (Salary Details) of Form 24Q-Q4:

1) In case Section ID ‘16 (ia)’ is mentioned in field no. 6 of Section 16 record (i.e. S16 record as per the file format of Form 24Q-Q4), then a value of more than 40,000.00 should not be allowed in ‘Total Deduction under Section 16’. This validation will be applicable for regular as well as correction statements (C4 type correction)..
For more information, refer to SAP Note 2784489.

• Changes related to Union budget 2019-2020
  
  The following changes are proposed in the interim budget of 2019:
      1) To increase the standard deduction for salaried individuals.
      2) To provide tax rebate on income up to INR 5 lakhs.
  
  Changes have been made to meet this requirement. For more information, refer to SAP Note 2760433.

• Transgender added as a gender option
  A new category of Transgender along with male and female in Form number 49A and 49AA i.e. PAN card application forms for Indian citizens and foreign citizens have been incorporated . Various government agencies and social security organizations such as the Employees’ Provident Fund Organization, the Professional Tax departments etc. also have modified their forms to include transgender as a third gender option. Changes have been made to meet this requirement. For more information, refer to SAP Note 2716382.

• HINCALC0: Gratuity exemption when terminated on last day of a month
  If an employee leaves the organization on the last day of a month, their wages of that last month should be considered in the average monthly salary used to calculate their gratuity exemption. Changes have been made to meet this requirement. For more information, refer to SAP Note 2735651.
• Professional Tax for Punjab region
  For Professional Tax computation, new slabs and corresponding deduction amounts are introduced by the Punjab Government. Professional Tax Basis is computed annually (using projection) every month and subsequently Professional Tax deductions are made in each month. The Professional Tax slabs for Punjab are as follows:
  - Annual Salary or wages up to 2,50,000   - Tax per month: Nil
  - Annual Salary or wages above 2,50,000 - Tax per month: 200
  For more information, refer to SAP Note 2728514

• EDLI basis change from employer pension basis to employer PF basis
  Previously, EDLI basis is formed as per the employer pension (EPS) basis. However at present, EDLI basis is formed as per the employer PF basis. In case employer PF (EPF) basis is less than or equal to eligible pay, EDLI basis is formed as per the employer PF basis. And, if the employer PF basis is more than the eligible pay, then EDLI basis formed is equal to eligible pay.
  Changes have been made to meet this requirement. For more information, refer to SAP Note 2716988
  
  
• SAP HCM India Localization Experts’ Meet - 2018
  SAP Globalization Services conducted the SAP HCM India Localization Forum on November 20, 2018 at the SAP Labs Bangalore campus. The forum serves as a platform for SAP to collaborate, exchange learning and discuss enablement with our customers regarding various trends in the market and initiatives taken by the government. The forum was attended by 37 customers and 64 participants. The following presentations made by SAP experts in the forum are available zipped here:
  - Keynote
  - HCM Strategy by Chief Architect
  - Key Legal Changes in India Payroll
  - Personal Data Protection Bill, 2018
  - Recent Innovations in India Payroll
  - Next Generation Support for Payroll
  - Cloud Transformation for SAP HCM Customers
  - Updates and Roadmap of HCM Fiori Applications
  - Legal Change Notification as a Service
  
  
• Length increased for “Income from Dividends” field
  Previously in few cases it was not possible to maintain income from dividends when it was one core or more, since the maximum amount allowed in the respective field is only up to INR 99,99,999.99. The field length is now increased where it is possible to maintain income in cror or more. For more information, refer to SAP Note 2684568. 
• New format of Form III is created for West Bengal Professional Tax Report
  According to legal change requirements, a new form III is created for the West Bengal Professional Tax reporting. This form can be generated on an annual or quarterly basis. The last page of the form III is displayed in ALV format. For more information, refer to SAP Note 2678463.
• Standard deduction not computed in the payroll for the organization using AFY
  According to Budget 2018-19 requirements the standard deduction must be computed in the payroll results. The standard deduction was not computed in the payroll run for the organization using AFY (Alternate Financial Year). With this SAP note standard deduction will now be computed in the payroll results for the organization using AFY.For more information, refer to SAP Note 2670456.
• A new version of the FVU (File Validation Utility) is applicable with effect from June 29, 2018 and is released by the government
  A new column for “Deduction under Section 16 (ia)” is added under Annexure II (i.e. Salary details) for Form 24Q-Q4:

        - The above referred deduction is applicable for Regular and Correction statements for Form 24Q-Q4.  
        - Deduction under Section 16 (ia) will be applicable for statements pertaining to F.Y. 2018-19 onwards

Introduction of new remark code for Form 26Q.
- A new remark code “R” is introduced under field “Remarks” in Annexure I (i.e. deductee details) for deduction on interest income for Senior Citizens.
- This will be applicable only for section code 194A (i.e. interest other than interest on securities). 
- Same will be applicable for Regular and Correction statements pertaining to Form 26Q from F.Y. 2018-19 onwards. 

For more information, refer to SAP Note 2665212.

• Medical Perk generated even when medical allowance is no longer applicable
  Previously, medical allowance was given to the employees which showed as medical perquisite as one of the component of the salary packaging in the payroll results. Effective April 2018, medical allowance is stopped and relevant changes have been made, so that medical perquisite is longer a component of salary packaging.For more information, refer to SAP Note 2647178.
• EPF Administration charges reduced from 0.65% to 0.5%
  Previously, the administrative charges for provident fund was 0.65% of total wages of an employee. With the current legal notification the charges are reduced to 0.5%.Changes have been made to meet this requirement. For more information, refer to SAP Note 2650363.
• Calculation of car perk in case of mid-month change of car
  In case an employee avails multiple cars in a month, the car with maximum perk value will be considered for the payroll run for that entire month. In case there is a company code change in the middle of financial year for an employee, the car perk from the current company is considered for the payroll run instead of the previous company’s car perk. For more information, refer to SAP Note 2631303.
• Change in exemption limit for gratuity
  Previously, the life time gratuity exemption limit was INR 10,00,000. With the current legal notification the limit is changed to INR 20,00,000.Changes have been made to meet this requirement. For more information, refer to SAP Note 2628519.
• Budget 2018 Webinar
  A webinar for customers was conducted to explain the latest SAP system changes made according to Budget 2018 along with key scenarios and how this can help your organization. For a recap, you can refer to the Power Point file presented in the webinar.
• Changes as per Union Budget 2018
  Changes have been made to meet the Union Budget 2018 proposal. For more information, refer to SAP Note 2606366.

• Tax payable for employees with no PAN when it is less than slab rate tax
  Previously, tax on the income of employees with no PAN was determined by applying a flat tax rate. Now, if the tax determined at this flat rate is less than the tax as per the normal tax slab rates, then the higher of the two should be deducted as tax. Changes have been made to meet this requirement. For more information, refer to SAP Note 2593331.

• HINCF160: 80 characters for employee name in Forms 16, 12BA and 12BB
  Previously in Form 16 Part B, Form 12BA and Form 12BB, the employee name was truncated to 40 characters. Changes have been made to get the employee’s first name and last name from IT0002 and display the same up to 80 characters. For more information, refer to SAP Note 2600294.
  
• IT0581: PAN details of multiple landlords in case of shared property
  Previously, for an employee paying rent to more than one landlord at the same time, additional details such as name, PAN etc. for multiple landlords could not be entered in IT0581. A new “Particulars” field has been created in IT0581 to maintain the additional details. For more information, refer to SAP Note 2581965.
  
• Configuring more panchayats for Tamil Nadu region
  Previously, professional tax was not getting calculated for employees in Tamil Nadu panchayats configured as AX, BX or CX where X has a value from G to Z. It should be possible for maintain more than 45 panchayats for Tamil Nadu (where X can have a value from G to Z), and professional tax should be computed for employees in these panchayats. Changes have been made to meet this requirement. For more information, refer to SAP Note 2603334.
  
• DIAL SAP PICS (Payroll India Critical Support) starts 29 January
  Starting from January 29, 2018, Payroll India Critical Support will be available Monday to Friday from 10 AM to 5 PM IST. See SAP Note 2574315 for details on how to reach Product Support for your critical issues related to Payroll India.
  
• DIAL SAP PICS (Payroll India Critical Support) starts 29 January
  Starting from January 29, 2018, Payroll India Critical Support will be available Monday to Friday from 10 AM to 5 PM IST. See SAP Note 2574315 for details on how to reach Product Support for your critical issues related to Payroll India. 
• Get joining date from IT0041
  A provision has been made to get the actual hiring date of the employee for the Tax Simplifier Statement from IT0041 instead of IT0000 if so desired. For more information, refer to SAP Note 2546239.
  
• HINCBON0: Consider employee’s min. wage for calculating max. bonus payable
  Previously, the maximum bonus payable to all employees was fixed at INR 16,800. However now the minimum wage of the employee should be taken into account as well to determine the maximum bonus payable. Changes have been made to meet this requirement. For more information, refer to SAP Note 2560950.
• Exclude first tax slab for taxation of employee with no PAN
  Previously, the flat tax rate prescribed for employees who do not submit PAN details was applied to their entire income. However, the first tax slab should be excluded and only the remaining income should be taxed at the flat rate in such cases. Changes have been made to meet this requirement. For more information, refer to SAP Note 2519767.
  
• Bonus proration in case of loss of pay
  For employees who have loss of pay in a month, the bonus basis amount should be prorated form from the financial year 2017-18 and not for previous years. The HINCBON0 report and the INBN rule have been modified to achieve this. For more information, refer to SAP Note 2526267.
  
• HINCALC0: Exemption u/s 10 for employee transferred with company code change from northeast to other region
  The salary of an employee who works in the northeast region is eligible for tax exemption under Section 10 of the Income Tax Act, 1961. If such an employee is transferred to a non-northeast region with a company code change, the salary is no longer exempt. For such employees, exemption under Section 10 with respect to northeast should be discontinued after the transfer and the exemption value should be prorated accordingly. Changes have been made to address this. For more information, refer to SAP Note 2505631
  
• FVU 5.5 changes
  FVU 5.5 used for validating the e-file generated by the Form 24Q report has been updated as below. If there is Deduction of Interest under Income from House Property, the lender’s PAN must be provided. However, if the lender does not have a PAN, the following value should be mentioned instead in the PAN of Lender field of the e-file -- ‘GOVERNMENT’ if the lender is a government organization, ‘NONRESDENT’ if the lender is a non-resident, and ‘OTHERVALUE’ if the lender is neither of these. Further, a value should be mentioned in Pan of Lender only if field no. 49 (Whether Interest paid to the lender under the head 'Income from house property') of the Salary details record has the value "Y". Changes have been made to address this. For more information, refer to SAP Note 2511847.HINCALTC
• Checks mapping of tax codes with allowance grouping SAP has delivered the HINCALTC report for reconciling the entries in tables V_T7INT9 and V_T7INA9. The report can be used to identify the invalid tax code wage type mappings for a particular allowance grouping. Resolving these erroneous configurations will ensure that correct exemptions are calculated in payroll for the respective allowances such as HRA, conveyance, gratuity, leave encashment and medical. For more information, see SAP Note 2426635.

Find all India-related documentation

Core HCM capabilities in the localized version of SAP ERP for Indonesia support global business best practices and local legal compliance to meet your end-to-end HR and payroll processing needs.

• Highlights of the local version for Indonesia:

View the Highlights: PDF

Online Help and Legal Changes

Get online help and learn about legal changes* in the latest release of SAP ERP.

Core HCM capabilities in the localized version of SAP ERP for Japan support end-to-end personnel processes.

Online Help and Legal Changes

Get online help and learn about legal changes* in the latest release of SAP ERP.

Highlights of the local version for Japan

• View the Highlights:  PDF 
  
  

Find all Japan-related documentation (in Japanese and English) >

Core HCM capabilities in the localized version of SAP ERP for Kazakhstan support local legal requirements and business best practices, and are included in the standard local version of SAP ERP.

Legal Changes

Learn about legal changes* in the latest release of SAP ERP.

Highlights of the local version for Kazakhstan – HCM

• View the document

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Core HCM capabilities in the localized version of SAP ERP 6.0 for Malaysia support global business best practices and local legal compliance to meet your end-to-end HR and payroll processing needs.

• Highlights of the local version for Malaysia:

View the Highlights: PDF

Online Help and Legal Changes

Get online help and learn about legal changes* in the latest release of SAP ERP.

Core HCM capabilities in the localized version of SAP ERP for New Zealand support global business best practices and local legal compliance to meet your end-to-end HR and payroll processing needs.

Online Help and Legal Changes

Get online help and learn about legal changes* in the latest release of SAP ERP.

• News and Developments for New Zealand 2021-22 Tax Year Changes Released (Feb 2021)
  Changes for the new tax year have been released. These include changes to support version 2 of Pay Day Filing, an extra top tax band, new tax codes, student loan threshold increase, changes to the Quarterly Employment Survey and a new Employment Information reconciliation report.  Refer to SAP Note 3021354 for an overview of the changes.
• 2020-21 Tax Year Changes Released (Feb 2020)
  Changes for the new tax year have been released (SAP note 2872588). These involve ACC and Student loan threshold increases and new functionality to support the repayment of student loans.

• 2019-20 Tax Year Changes Released (Feb 2019)
  Changes for the new tax year have been released (SAP Note 2732054).  These involve threshold changes for ACC/Student Loan, extra pay rate calculation changes, as well as changes to KiwiSaver.  In addition, enhancements have been made to the Pay Day Filing solution which is mandatory from 1 April 2019.  Refer to the Pay Day Filing SAP Overview Note 2695998 for details.
• SAP Notes Released for Pay Day Filing (Sept 2018)
  Pay Day Filing is a significant new legal change for New Zealand that changes what, when and how payroll related information is sent to Inland Revenue. It is a mandatory change from 1 April 2019 but is recommended that customers go live earlier than this date. The solution involves changes to the payroll component and the use of SAP Cloud Platform Integration. The solution is released in the September support pack. Refer to SAP Note 2672190 for full details.
• 2018-19 Tax Year Changes Released (Feb 2018)
  Changes for the new tax year have been released (SAP Note 2588098).  These involve threshold changes for ACC/Student Loan and changes to the EMS schedule to report employee share scheme benefits. In addition SAP Note 2576049 has been released to give the ability to mark an employee as exempt from KiwiSaver. This is not immediately required but will be required before April 2019 (or when you commence reporting by pay date).

• Changes to Support Holiday Act Guidance Material (Nov 2017)
  SAP has released a number of changes to support the new Holidays Act guidance document released by the Ministry of Business Innovation and Employment. Refer to SAP Note 2552462 for details

Highlights of the local version for New Zealand

This file will be available, soon.

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Core HCM capabilities in the localized version of SAP ERP 6.0 for Philippines support global business best practices and local legal compliance to meet your end-to-end HR and payroll processing needs.

News and New developments for Philippines

• Tax Reform for Acceleration and Inclusion (TRAIN) has been published on 29 December 2017. Under Republic Act 10963, non-taxable individual income is P250,000 and the maximum rate of 35% is applicable on income over P8,000,000. Tax exemption of 13th month pay and other bonuses increased the cap to P90,000. Deduction of P2,400 per year or P200 per month worth of premium payments on health and/or hospitalization of an individual taxpayer will be removed from January 1, 2018.
  Personal and additional exemptions are also removed from January 1, 2018. The changes on Revised Withholding Tax table takes effect on January 1, 2018.
  
  Business Background/Impact
  This change is effective on 1 January 2018. We  recommend you to apply SAP notes (2581184, 2584539, and 2585672) or corresponding support package to include these changes before payroll processing.
  
  Reference
  SENATE S.B. No. 1592, Republic Act 10963: Revised Withholding Tax Table
  
  Solution
  Under Republic Act 10963, non-taxable individual income is P250,000 and the maximum rate of 35% is applicable on income over P8,000,000. Tax exemption of 13th month pay and other bonuses increased the cap to P90,000. Deduction of P2,400 per year or P200 per month worth of premium payments on health and/or hospitalization of an individual taxpayer will be removed from January 1, 2018. Personal and additional exemptions are also removed from January 1, 2018. The changes on Revised Withholding Tax table takes effect on January 1, 2018. To meet these changes, a new tax status 'TRN' (Tax status for tax reform 2018) has been delivered. All previous tax status (HF, HF1, HF2..etc.) will be deemed to be tax status 'TRN' from Jan. 1st 2018.
  For more details, please refer to SAP Notes 2581184, 2584539, and 2585672.

• View the Highlights of the local version:   pdf
   

Online Help and Legal Changes

Get online help and learn about legal changes*in the latest release of SAP ERP.

Core HCM capabilities in the localized version of SAP ERP 6.0 for Singapore support global business best practices and local legal compliance to meet your end-to-end HR and payroll processing needs.

• View the highlights of the local version:   PDF

Online Help and Legal Changes

Get online help and learn about legal changes* in the latest release of SAP ERP.

Payroll capabilities in the localized version of SAP ERP for Korea can help you simplify and integrate end-to-end payroll functions to meet all your HR and payroll processing needs.

Legal Changes

Learn about legal changes* in the latest release of SAP ERP.

Highlights of the local version for South Korea:

View the Highlights: PDF

Find all Korea-related documentation >

Core HCM capabilities in the localized version of SAP ERP for Taiwan, China support local legal requirements and business best practices, and are included in the standard local version of SAP ERP.

• View the highlights of the local version:  PDF

Online Help and Legal Changes

Get online help and learn about legal changes* in the latest release of SAP ERP.

News and developments for Taiwan, China

More information regarding the HCM legal change for Taiwan, China is found SAP Note 1811593*.

• Important Notes for Legal Changes 2018
  More information regarding the HCM Localization for Taiwan, China can be found in the HCM Localization JAM for GCN . In case you do not have access, please send the request to sherry.xie@sap.com

• Employee SNHI accumulation after company (June 2018) 
  After you have transferred an employee to another company, e.g. to another personnel area with a different enterprise ID, the employee receives a bonus payment in the new company, which is subject to supplementary NHI calculation.
  According to the NHI bureau, the yearly accumulated amount in the Bonus Cumulation of the previous company should not be taken to the new company, namely, the employee's yearly accumulated bonus amount should be cleared in the new company. The SAP Note 2688022 provides customers the Action Type for Company Transfer (TWCMT) feature to enable them to configure their own action type for company transfer. If employee transfer happens with the specified action type, then the Yearly Bonus Accumulation amount (/T11) will be cleared.
  
  
• Enhancement for the cumulation period of overtime limitation (April 2018)
  According to legal statement in Labor Standards Act, employers and employees can negotiate and determine a start period for the cumulated 3 consecutive months for overtime limit check. Overtime hours in 3 consecutive months shall not exceed 138 hours. The SAP Note 2618980 also adjusts the configurations of some model wage types for overtime limit check rule.
  
  
• Amendment to Labor Standards Act 2018 (February 2018)
  The newly amended Labor Standards Act takes effect from March 1, 2018. Overtime pay policies are revised accordingly as below:
  -  Article 24, overtime hours on rest days are calculated based on overtime that actually happen.
  -  Article 32, total overtime hours within 3 consecutive months should not exceed 138 hours.
  The SAP Note 2609233 enhances the Carry out cutoff date and overtime hours taxable limit (TWOT) payroll function to perform the 138-hour overtime limit check. For overtime payment configurations of Rest Day, you can check the attached document for reference. Kindly know that you'd follow your own business to address the legal change.
  
  
• ALV output of report PC00_M42_LAM0 (February 2018)
  The SAP Note 2618408 adds two new fields Old Class and New Class in the ALV output of the Read payroll result and update infotype 0354/0355/0818 (HTWLAM00) report in order to help improve the efficiency during LI/NHI/NP adjustment cross check.
  
  
• Withholding Tax Tables for 2018 (February 2018)
  According to the Taxation Administration, Ministry of Finance, a new Tax Withholding Table for the year of 2018 is effective on January 1, 2018. For more information, click here.
  The SAP Note 2596904 updates the layout for the IR56B, IR56E, IR56F, and IR56G forms.
  
  
• Year-end file Format (January 2018)
  According to Taiwan Ministry of Finance, a new income format 50C (Salary from Mainland) is added to the year-end file format released for year The SAP Note 2592390 provides two specification values for evaluation class 06, user can customize their own wage types of 50C income/tax with these specifications, and declare them via the tax certificate reports.
  
  
• Enable Function TWTRF to Recalculate Tax for Previous Periods by Pay Date (February 2016)
  SAP Note 2283612* is a correction of legal function based on SAP Note 1828539*. According to this note, you delimit the Income Tax (TW) (0353) infotype with the rule Residency in Taiwan, China less than 183 days in the current month for a foreign employee, and the tax for previous months of the calendar year is recalculated according to the foreigner tax rule.
  However, if the pay date of the payroll period is in the next month, the tax of last December should also be recalculated in the above case. Here is an example:
  -  You delimit the infotype 0353 with the rule Residency in Taiwan, China less than 183 days in April for a foreign employee.
  -  You need to recalculate the tax for previous months, including March, February, January, and Last December with foreigner tax rule.
  
  
• Family Member’s NHI Calculation for Transfer in and Transfer out in One Month (January 2016) - The National Health Insurance Administration has released that, when the NHI insured transfers in and transfers out in one month, the NHI insured is eligible for NHI contribution for this month in the company. SAP Note 2260758* addresses this legal compliance.
  
  
• NHI and SNHI Premium Rate Adjusted from January 1, 2016 (January 2016) - SAP Note 2263609* provides details about the changes based on the announcement from National Health Insurance (NHI) Administration. The premium rate for NHI and supplementary NHI (SNHI) is as follows, effective on January 1, 2016 (for more information, visit the NHI site):
  • The premium rate for NHI is adjusted to 4.69%.
  • The premium rate for supplementary NHI is adjusted to 1.91%.
  • The lower limit of SNHI for professional practice income is adjusted to TWD 20,000.

Find all Taiwan-related documentation >

Payroll capabilities in the localized version of SAP ERP for Thailand can help you simplify and integrate end-to-end payroll functions to meet all your HR and payroll processing needs.

Online Help and Legal Changes

Get online help and learn about legal changes* in the latest release of SAP ERP.

Highlights of the local version for Thailand

This file will be available, soon.

Payroll capabilities in the localized version of SAP ERP for Denmark can help you simplify and integrate end-to-end payroll functions to meet all your HR and payroll processing needs.

Get online help and learn about legal changes* in the latest release of SAP ERP.

Highlights of the local version for Denmark

• View the e-book (.mp4 | .pdf)
  All e-books will be updated, soon. At the moment the old name "country version" is still used, meaning "local version".
• View the e-book addendum

Find all Denmark-related documentation >

Payroll capabilities in the localized version of SAP ERP for Finland can help you simplify and integrate end-to-end payroll functions to meet all your HR and payroll processing needs.

Get online help and learn about legal changes* in the latest release of SAP ERP.

Highlights of the local version for Finland

• View the Highlights of the local version:  pdf
  
  

Find all Finland-related documentation >

Payroll capabilities in the localized version of SAP ERP for Ireland can help you simplify and integrate end-to-end payroll functions to meet all your HR and payroll processing needs.

• View the Highlights of the local version:   PDF

Get online help and learn about legal changes* in the latest release of SAP ERP.

Payroll capabilities in the localized version of SAP ERP for Norway can help you simplify and integrate end-to-end payroll functions to meet all your HR and payroll processing needs.

Get online help and learn about legal changes* in the latest release of SAP ERP.

Highlights of the local version for Norway

This file will be available, soon.

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Payroll capabilities in the localized version of SAP ERP for United Kingdom can help you simplify and integrate end-to-end payroll functions to meet all your HR and payroll processing needs.

Get online help and learn about legal changes* in the latest release of SAP ERP.

News and Developments

• Please double check your HMRC Security Settings are correct
  In SAP Note 2750539 - PY-GB: GB e-Filing Update HMRC Security Changes - MD5, TLS 1.0 and Credential Length,  released 05.02.2019, SAP delivered the changes needed to meet the new HMRC security requirements.
  HMRC have contacted SAP to advise that a number of customers using our software are still using MD5. Currently HMRC are accepting these submissions but very soon they will start rejecting submissions not using the new clear text password. 
  We have released a Knowledge Based Article to help you check you have made the correct changes. You need to ensure table entries are imported correctly from client 000.
  SAP Note 2807435 - Switch from MD5 to clear text for RTI submissions
  Please check your settings carefully and ensure you have followed all the implementation steps required.
  If you do not check and correct your settings then you run the risk that future submissions will be rejected by HMRC. 
• GB UK Withdrawal from the EU (Brexit)
  SAP Note 2885225 - BREXIT: Through the Transition Period and Beyond (central note)
  Please also see: UK Withdrawal from the EU (Brexit)
  For further information on BREXIT please read the SAP Brexit Readiness Whitepaper 
• Check out the following documents: 
  Multiple Employment, Apprenticeship Levy, Apprentice Levy for Pooled Payrolls and PBIK and Salary Sacrifice
  
  
• View the highlights of the local version:  PDF

Find all United Kingdom related documentation (English) >