For all the tax related information, there are 3 main tables which need to be looked at:
T5UTE (Tax Authority / Tax Calculation Model): The tax model will be assigned to the tax authorities.
T5UTM (Tax Model): Taxability model will be defined here with respect to definition of type of payment, type of employee and residency or work. Tax combo for each definition will be assigned.
T5UTY (Tax Type Combinations): Here we define the Tax Type combination. Against each tax combo tax type will be defined.
The tax combo defined will be assigned to taxability model and the taxability model will be assigned to tax authority.
Steps to be followed to stop the deduction of a particular tax which is being withheld from the employees who work for a particular region:
Ø Check for the taxability model assigned to the tax authority (in table T5UTE)
Ø Then check for the tax combo attached to the tax model. (in table T5UTM).
Ø Check if any of the tax combo’s are assigned with the tax type that calculates the tax which needs to be stopped from deduction from employees. (in table T5UTY)
ØIf so, create a new tax combo ignoring the relevant tax type that calculates tax which needs to be stopped from deduction.
ØAssign the newly created tax combo to the taxability model with the effective date by delimiting the earlier tax combo.
*Note: These steps can be followed only when the tax model and the tax combo are used only for that particular region for which the tax deduction from the employees needs to be stopped.