How To Fix 5K016 - Tax authority not valid for subtype

SAP Error Message - Details

• Message type: E = Error

• Message class: 5K - HR: Messages for Canada

• Message number: 016

• Message text: Tax authority not valid for subtype

What causes this issue?

Table 591A contains a level which corresponds to the taxing authority
level: Federal, Provincial or Local. You have entered a
mismatch here. Please check values entered in the screen's subtype.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message 5K016 - Tax authority not valid for subtype ?

  The SAP error message 5K016, which states "Tax authority not valid for subtype," typically occurs in the context of tax processing within the SAP system. This error indicates that the tax authority you are trying to use is not valid for the specific tax subtype you are working with. Here’s a breakdown of the cause, potential solutions, and related information:
  Cause:
  
  Incorrect Configuration: The tax authority may not be configured correctly for the specific tax subtype in the system.
  Missing Tax Authority: The tax authority might not be defined for the specific tax type/subtype combination in the system.
  Data Entry Error: There could be a mistake in the data entry where an incorrect tax authority is selected for a transaction.
  Version or Update Issues: Sometimes, updates or changes in tax regulations may not be reflected in the system, leading to discrepancies.
  
  Solution:
  
  
  Check Tax Authority Configuration:
  
  Go to the transaction code OBYZ (for tax configuration) and verify that the tax authority is correctly set up for the relevant tax subtype.
  Ensure that the tax authority is assigned to the correct country and tax type.
  
  
  
  Verify Tax Type/Subtype:
  
  Check the tax type and subtype being used in the transaction. Ensure that they are compatible with the tax authority you are trying to use.
  
  
  
  Update Tax Configuration:
  
  If the tax authority is missing for the required subtype, you may need to add it. This can be done in the tax configuration settings.
  Consult with your SAP FI/CO consultant or tax specialist to ensure compliance with local tax regulations.
  
  
  
  Review Transaction Data:
  
  Double-check the transaction data for any errors in the selection of tax authority or subtype. Correct any discrepancies.
  
  
  
  Consult Documentation:
  
  Review SAP documentation or notes related to tax configuration for your specific version of SAP. There may be specific guidelines or updates that need to be applied.
  
  
  
  Testing:
  
  After making changes, perform a test transaction to ensure that the error no longer occurs.
  
  
  
  Related Information:
  
  SAP Notes: Check SAP Notes for any known issues or patches related to tax authority configurations.
  Tax Compliance: Ensure that your tax configurations comply with local tax laws and regulations, as these can change frequently.
  User Roles: Ensure that the user has the necessary permissions to access and modify tax authority settings.
  
  If the issue persists after following these steps, it may be beneficial to engage with SAP support or a qualified SAP consultant for further assistance.