What is non-resident for tax purposes in SAP FIN-FSCM-TRM - Treasury and Risk Management?

SAP Term: non-resident for tax purposes

• Component: FIN-FSCM-TRM

• Component Name: Treasury and Risk Management

• Description: Tax payer whose residence is not in Germany. According to German tax law, a non-resident for tax purposes only has a limited tax liability. For example, interest is exempt from tax but dividends are taxed.

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• Key Concepts: 
  Non-resident for tax purposes is a term used in SAP Treasury and Risk Management (FIN-FSCM-TRM) to describe a company or individual who is not liable to pay taxes in the country where they are located. This could be due to a variety of reasons, such as having a permanent residence in another country or being a foreign company. 
  
  How to use it: 
  In SAP Treasury and Risk Management, non-residents for tax purposes are identified by their tax identification number (TIN). This number is used to determine whether the company or individual is liable to pay taxes in the country where they are located. The TIN can be entered into the system when setting up a new customer or vendor. 
  
  Tips & Tricks: 
  When entering a TIN for a non-resident for tax purposes, it is important to ensure that the correct country code is used. This will ensure that the system recognizes the customer or vendor as a non-resident for tax purposes and will not apply any taxes to their transactions. 
  
  Related Information: 
  For more information on non-residents for tax purposes, please refer to the SAP Treasury and Risk Management documentation. Additionally, you can contact your local tax authority for more information on how non-residents are treated in your country.