How To Fix HRPAYAT_0042104 - Tax procedure/exemption combination does not permit DTC values

SAP Error Message - Details

• Message type: E = Error

• Message class: HRPAYAT_0042 - Notifications Relating to IT0042: Tax

• Message number: 104

• Message text: Tax procedure/exemption combination does not permit DTC values

What causes this issue?

The entries for tax procedure and tax exemption do not allow further
values to be entered for the DTC (exemption method/imputation method).

System Response

The system issues a warning and deletes any values that may have been
specified for the DTC.

How to fix this error?

Delete the values for the DTC or correct the entries for tax procedure
and tax exemption.

Procedure for System Administrators

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message HRPAYAT_0042104 - Tax procedure/exemption combination does not permit DTC values ?

  The SAP error message HRPAYAT_0042104 indicates that there is an issue with the tax procedure or exemption combination that does not allow for Double Taxation Convention (DTC) values. This error typically arises in the context of payroll processing, particularly when dealing with tax calculations for employees who may be eligible for tax exemptions or reductions under international tax treaties.
  Cause:
  
  Incorrect Tax Configuration: The tax procedure or exemption settings in the SAP system may not be configured correctly to allow DTC values.
  Missing DTC Settings: The necessary settings for DTC in the tax configuration may not be defined or activated.
  Employee Master Data Issues: The employee's master data may not have the correct tax information or exemptions set up.
  Incompatibility: The combination of the tax procedure and the exemption type may not be compatible with DTC processing.
  
  Solution:
  
  
  Review Tax Configuration:
  
  Check the tax procedure settings in the SAP system to ensure that they are correctly configured to allow DTC values.
  Ensure that the relevant tax codes and exemptions are set up properly in the system.
  
  
  
  Update Employee Master Data:
  
  Verify the employee's master data to ensure that the correct tax exemptions and DTC eligibility are recorded.
  Make sure that the employee's nationality and residence status are correctly entered.
  
  
  
  Consult Tax Experts:
  
  If necessary, consult with tax experts or SAP consultants who specialize in payroll and tax configurations to ensure compliance with local tax laws and international treaties.
  
  
  
  Testing:
  
  After making changes, perform a test run of the payroll process to ensure that the error does not reoccur and that DTC values are being processed correctly.
  
  
  
  Documentation:
  
  Document any changes made to the configuration or employee data for future reference and compliance purposes.
  
  
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide guidance on configuring DTC settings.
  Tax Procedures: Familiarize yourself with the specific tax procedures applicable to your organization and the countries involved.
  Training: Consider training for HR and payroll staff on handling international tax issues and the implications of DTC.
  
  By addressing the configuration and data issues outlined above, you should be able to resolve the HRPAYAT_0042104 error and ensure that DTC values are processed correctly in your SAP payroll system.