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Core HR Capabilities in SAP ERP: Asia Pacific and Japan

Keep your core human capital management operations running at peak performance by following the latest news, improvements, legal changes, and documentation for SAP ERP software that’s localized for use in countries in the Asia Pacific.
The term “country” is used for convenience only and does not necessarily infer the existence of a nation state.

Core HR Capabilities for Asia Pacific and Japan

Australia

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, and learn about the redesign of the tax solution from SAP*.

News and developments for Australia

  • 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 thiis.
  • 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 employeefor unused leave on the termination of their employment, then the paymentshould either be taxed at the rate of 32% or should be marginally taxed basedon 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.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 and ECP customers in the cloud on ECC 6.08
    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 country version for Australia


Find all Australia-related documentation >

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China

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*

  • 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 country version for China


Find all China-related documentation >

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Hong Kong

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

Important Notes for Legal Changes

More information regarding HK legal change for HCM can be found at annual announcement SAP Note 1811594*

  • 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. For more details about, visit the HK government site.
  • 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.

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India

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.

News and developments for India

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

  • 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 >

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Indonesia

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.

Online Help and Legal Changes

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

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Japan

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 country version for Japan

 

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

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Kazakhstan

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 country version of SAP ERP.

Legal Changes

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

Highlights of the country version for Kazakhstan – HCM


Find all Kazakhstan-related documentation >
 

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South Korea

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.

News and developments for Korea

For more information, consult SAP Note 2251634* – LC2016: Separation payment tax and health insurance premium.

  • Legal change of 2016 separation payment (December 2015) – NTS informs new income tax calculation rule for 2016 and receipt for 2016 income tax calculation rule for separation payment. For more information, consult SAP Note 2251634* – LC2016: Separation payment tax and health insurance premium.


Find all Korea-related documentation >

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Malaysia

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.

Online Help and Legal Changes

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

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New Zealand

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

  • 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 paydate).
  • 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 country version for New Zealand


Find all New Zealand-related documentation >

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Philippines

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.

 

Highlights of the country version for Philippines

 

Online Help and Legal Changes

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

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Singapore

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.

Online Help and Legal Changes

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

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Taiwan

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

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

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

  • 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 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 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. For more details, refer to the NHI siteSAP 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 >

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Thailand

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.

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