2424727 - Frequently Asked Questions: HCM Spain Taxes

This is a list of frequently asked questions and answers about the HCM Spain tax solution.

Although we try to make it as comprehensive as possible, this is not an exhaustive document. The document will be updated with new questions and answers as they arise. Questions are organized by topic, and each topic includes an introduction to facilitate understanding.

Before contacting SAP, check whether your questions are already answered here, in SAP correction notes, or in the product documentation. Product documentation includes system documentation (reports/transactions, customizing - SPRO, field help, messages, BAdIs, payroll objects) and SAP Help Portal documentation (http://help.sap.com/).

In the Keywords section, you can find a glossary of terms in Spanish and English that will help you search through the questions and answers.

Please note that there are several questions regarding decisions made by the Tax Agency (Agencia Tributaria), for which SAP is not responsible.

The English version of these frequently asked questions and answers can be found in Knowledge Base Article 2385096.

Withholding Tax Rate

1. When should I force regularization for employees (Force regularization field)?

2. I need to run the Annual Taxable Income Calculation program (RPIGA0E0) monthly because I have many temporary employees. Depending on the number of contracts, employees do not have the same income estimate. I normally run the program for about 20,000 temporary employees. Should I force regularization for these employees every month (Force regularization field)?

3. I have applied SAP Note 2345996, but the system continues to incorrectly calculate estimates when I run the Annual Taxable Income Calculation program (RPIGA0E0) for employees with non-arrears from previous years. What should I do?

4. How do I indicate to the system that a family member should be considered for the purpose of reducing the base used to calculate the withholding tax rate?

Base Types and Withholdings

1. In form 190, an employee has a positive base and a negative withholding. I have heard that the withholding should be adjusted to zero, but this causes forms 111 and 190 not to match. Is this correct? How can I justify the difference to the AEAT (Spanish Tax Agency)? Shouldn’t we adjust the withholding to zero using the Additional Income infotype (0090) so that forms 111 and 190 are consistent?

2. Which payroll wage types should be considered as temporary disability benefits for the year 2016?

3. How does the adjustment of temporary disability benefits work in the Additional Income infotype (0090)?

4. An employee has been dismissed, and therefore a reduction has been applied to the severance pay according to article 18.2 of the Personal Income Tax Law (IRPF). How should this be reported in the system?

5. Which payroll wage types should be considered as temporary disability benefits for the year 2017?

Arrears

1. How is it defined in the system whether the nature of a wage type is arrears or non-arrears?

2. How are temporary disability benefits from arrears and non-arrears reported in form 190?

3. From what date should I activate the situation 190: Benefits transition solution (190PR)?

4. Can the situation 190: Benefits transition solution (190PR) cause different system treatment for dates prior to the activation date? Are wage types prior to /164 used?

5. How does the system define which differences in irregular income are arrears and non-arrears?

Non-Resident Taxation

1. The Additional Income infotype (0090) is not specific to any form. However, for employees who work abroad and return to Spain, I sometimes have problems adapting the information from form 296, for example, to form 190. Will there be any functionality specific to form 296?

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Atrasos = arrears

Cuadrar = match

Estatales = communities of common regime

Forales = communities of chartered regime

Impuesto sobre la renta de las personas físicas (IRPF) = employment tax (IRPF)

Impuesto sobre la renta de no residentes = Non-resident income tax

Incapacidad temporal (IT) = temporary disability (IT)

Modelo 190 = Form 190

Modelo 296 = Form 296

No atrasos = no arrears

Porcentaje de integración = integration percentage

Prestaciones = benefits

Prestaciones de incapacidad laboral abonadas = work incapacity benefits

Régimen común = common regime

Régimen foral = chartered regime

Regularización = regularization

Rendimiento irregular = irregular income

Retención = tax withholding, withholding

Tipo de IRPF = IRPF code , KBA , PY-ES , Spain , PA-PA-ES , Spain , How To