How To Fix DEFTAX034 - There is no deferred tax in the selected tax reporting country

SAP Error Message - Details

• Message type: E = Error

• Message class: DEFTAX - Message Class for BTE Call - RFUMSV50

• Message number: 034

• Message text: There is no deferred tax in the selected tax reporting country

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message DEFTAX034 - There is no deferred tax in the selected tax reporting country ?

  The SAP error message DEFTAX034 indicates that there is no deferred tax configuration for the selected tax reporting country in the system. This error typically arises when trying to process transactions or generate reports that involve deferred tax calculations, but the necessary settings have not been established for the specified country.
  Cause:
  
  Missing Configuration: The most common cause is that the deferred tax settings have not been configured for the specific tax reporting country in the SAP system.
  Incorrect Country Code: The country code used in the transaction may not be correctly set or may not correspond to a country that has deferred tax settings.
  Inconsistent Master Data: The master data for the company code or tax reporting country may not be properly maintained, leading to discrepancies in tax calculations.
  
  Solution:
  
  
  Check Configuration:
  
  Navigate to the SAP Customizing Implementation Guide (IMG) and check the configuration for deferred tax.
  Go to Financial Accounting (New) > Financial Accounting Global Settings > Tax on Sales/Purchases > Deferred Tax > Define Deferred Tax.
  Ensure that the deferred tax is defined for the relevant tax reporting country.
  
  
  
  Maintain Tax Codes:
  
  Ensure that the tax codes used in transactions are correctly set up to handle deferred tax.
  Go to Financial Accounting (New) > Financial Accounting Global Settings > Tax on Sales/Purchases > Maintain Tax Codes and verify the settings.
  
  
  
  Review Master Data:
  
  Check the master data for the company code and ensure that the tax reporting country is correctly assigned.
  Verify that the relevant settings in the company code configuration are correct.
  
  
  
  Consult Documentation:
  
  Review SAP documentation or help resources for any specific requirements or additional steps needed for the country in question.
  
  
  
  Testing:
  
  After making the necessary 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 deferred tax configurations.
  User Roles: Ensure that the user has the necessary authorizations to access and modify tax settings.
  Consulting Help: If the issue persists, consider reaching out to your SAP support team or a consultant with expertise in SAP Financials for further assistance.
  
  By following these steps, you should be able to resolve the DEFTAX034 error and ensure that deferred tax is properly configured for the selected tax reporting country.