Official Tax Address and Residence Tax


Residence tax is an element of the Payroll and the Year-End Adjustment calculation. The deduction of the residence tax is controlled by Infotype 0142 Residence Tax, based on data you enter.

The Residence tax is deducted from the montly payroll. Usually the deduction starts in June of the specified tax year. The deduction is done for the city where the employee is domiciled as of January 1st of the specified tax year.

The following employee data affects the deduction of residence tax:


After you enter the tax address in Infotype 0006 subtype J1, choose infotype change to change the address.

Choose infotype change to change the residence tax information in Infotype 0142.

Enter uncollected residence tax handling in Infotype 0145 when an employee retires.

See also:

Maintaining an Employee’s Tax Address

Employee’s Residence Tax Information

Maintaining an Employee’s Tax Status Information for Residence Tax