What is retention tax in SAP (PY-FR - France)?

SAP Term: retention tax

• Component: PY-FR

• Component Name: France

• Description: A type of withholding tax deducted from a foreign national's income 'Retenue à la source'.

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• Key Concepts: 
  Retention tax is a type of withholding tax that is applied to certain types of income in France. It is collected by the employer and paid to the French tax authorities. The amount of retention tax depends on the type of income and the employee's tax status. 
  
  How to use it: 
  In SAP, retention tax is managed through the PY-FR France component. This component allows employers to calculate and manage the withholding taxes for their employees. It also provides reports and other tools to help employers comply with French tax laws. 
  
  Tips & Tricks: 
  When setting up the PY-FR France component, it is important to ensure that all relevant information is entered correctly. This includes the employee's tax status, income type, and any other relevant information. This will ensure that the correct amount of retention tax is calculated and paid to the French tax authorities. 
  
  Related Information: 
  For more information about retention tax in France, please refer to the French Tax Authority website or contact a qualified accountant or tax advisor.