Purpose
This report generates the Income Tax statement form that has to beprinted and submitted to the employees in accordance with the SHCP (Taxand Public Credit Office) rules.

Warning
From February 18th 2009 this report will no longer maintained. Insteadprocess report Annual Declaration (HMXCDAN0).

Integration

Prerequisites
All wage types that must be issued in the Income Tax must have a valueof the evaluation class 12. For this setting, refer to theImplementation Guide (IMG), section Payroll México -> Income Tax ->Wage Types -> Define wage types for Income Tax

Selection
On the report selection screen you can specify the following, amongother data:

• Company RFC


• Year to be declared


• Total income to be compared: In this field, you determine the
employees for whom you wish to run the report, on the basis of theirannual income. For example, you can define that the report is executedonly for those employees whose annual income is equal or lower than 400
,000 pesos. The rest of the employees have to submit their income taxpersonally.

• Excluded from adjustment according to Tax IT: If this checkbox is
flagged, the report is generated only for those employees whose Infotype0561 (Tax Data) has the checkbox Exclude from process flagged. Ifthis checkbox is not flagged, the report is generated for all employees.

• Layout: Template (free printout) or official document.

Based on the year selected on screen, this report determines theappropriate format to be generated. For the official format option, thestandard SAP system provides two SAPScripts:
HRMX_LIB_RET0000: Official form 37
HRMX_LIB_RET000A: Official form 37-A
HRMX_LIB_RETASI0: Official form 37 for assimilated employees

• Assimilated key: Using this field you select the type of
assimilated employee for whom you wish to run this report. If you wantto run the report for salaried employees, select the blank value.

• Annual adjustment date: This selection criterion is used for
specifying the date on which the annual adjustment was carried out. Thereport will analyze the payroll results for the date entered, anddetermine whether the annual adjustment has been carried out or not. Ifthe definitive annual adjustment has been carried out over differentdates, we recommend that you process this report several times, one foreach adjustment date, each time selecting the corresponding employees.If the parameter has an initial value, then the report will determinewhether the annual adjustment used the last payroll result of the yearin question, taking into account that this could be either a regular oran off-cycle payroll. It is also important to be aware that if theannual adjustment was carried out the following year, then there is nopoint using this parameter, because it will not be checked in thecurrent year.

• Declaration date and number: These two fields are interdependent.
This means that if you make an entry in one of these fields, you mustalso enter a value in the other. The declaration date refers to the dateon which the Multiple Declaration (HMXCDEM0) was submitted. Thedeclaration number is the number assigned by the correspondingauthorities for the same declaration. If values are entered in thesefields, the report output in both official and preliminary formats willdisplay the corresponding legal text.

• Legal representative: If you wish to use for this for report a
legal representative different from the legal representative defined inthe Implementation Guide (IMG) settings, specify in this field therelevant personnel number. If you leave the field blank, the systemreads the legal representative set in the Implementation Guide (IMG), insection Personnel Administration -> Personnel Administration ->Payroll Data -> IMSS Data -> Assign IMSS EmployerRegistration Number to Personnel Area/Subarea.

• Informative Off-cycles: In these fields you specify the reason

for off-cycle payroll that you wish to include in the report.

Standard_variants

Output
The sectons of the Multiple Income Tax generated by the report aredescribed below:
Header Data


• Period: Start month and end month. The periods in which an employee has
been active in each company are determined on the basis of the executiondates of the first and the last payroll runs for that employee in theyear in which the report is executed.

• Personal details: Father's surname, mother's surname and first name(s).
It is obtained from infotype 0002 (Personal Data).

• RFC (Federal Taxpayer Reg. No.): obtained from infotype 0185 (ID
documents), subtype 02 (RFC).

• CURP (unique ID number): Obtained from infotype 0002.


• Whether the employer carried out the annual calculation: In order to
determine whether or not the annual adjustment was carried out, thesystem checks for the Annual Adjustment Amount (/446) and AdjustmentAmount Previous Year (/449) wage types. If one of these wage types ispresent in the cluster, this means that the annual adjustment has beencarried out.

• Indicate whether the worker belongs to a union: The system concludes
that an employee belongs to a union if it detects infotype 0057(Associations).

• Key of the federating body that services were rendered to: Obtained from
table T7MX24. Includes the value specified in the official format.

• RFC of other employers: Obtained from infotype 0371 (Deductions from
Other Jobs), all the subtypes and the the MXCRT table for the RFCs otherthan the current one. The output will include a maximum of ten RFCs.This field is printed only if the annual adjustment has been performed.

• Rate used: To determine the rate used (for the fiscal year being
declared or the updated 1991 rate), the system analyses the calculationmethod used for the annual tax adjustment (TAX cluster table).

• Pay scale area of the minimum wage: Obtained from table T7MX64
(Implementation Guide, under Personnel Management -> PersonnelManagement -> Personal Data -> Addresses -> CheckAllocation of economic areas). To do this, the system calculatesthe employer's location for tax purposes according to table T7MX24(Implementation Guide, under section Personnel Management ->Personnel Management -> Payroll Data -> IMSS Information ->Define address for IMSS employer registration).

• Assimilated key, if applicable: in the case of assimilated employees,
the selected value will be displayed in the selection screen of thisreport.

• Subsidy proportion applied: It obtains the proportion stored in the
cluster table TAX IT, field PRSUA, for the last period selected in thecluster. When this field is set to zero, then:
If the rate of the year selected on the screen was applied, this fieldwill be equal to the field Subsidy proportion, that is obtainedfrom the table T7MX16 for the company in process (Implementation Guide,section Payroll Mexico -> Taxes -> Income Tax ->Maintain Tax subsidy).
If the rate of the year selected on the screen was not applied, thisfield will be equal to the field 1991 subsidy proportion, that isobtained from table T7MX16 for the company in process.
This field is printed only if the annual adjustment has been performed.
Income Tax (overview)

• Total salaries, wages and assimilated concepts: The sum of the taxed and
exempt income from the above section plus the paid pension andtermination payment amounts.

• Exempt income: The sum of the exempt income from the above section plus
the exempt pension and termination payment amounts.

• Non-cumulable income: The sum of non-cumulable income in payments due to
the employee leaving (pension and termination).

• Cumulable income: the difference between the salaries, wages and
assimilated wage types total, minus exempt income, minus non-cumulableincome.

• Tax according to the annual rate: wage types /402 and /40G. Wage type
/40G is read from table MXCRT for the following year.

• Accredited subsidy amount: wage types /405 and /40J. Wage type /40J is
read from table MXCRT for the following year.

• Non-accredited subsidy amount: Wage types /406 and /40K. Wage type /40K
is read from table MXCRT for the following year.

• Accredited subsidy amount Fraction III (for 2001 only): This field is
not maintained in this report.

• Accredited subsidy amount Fraction IV (for 2001 only): This field is not
maintained in this report.

• Tax on cumulable Income: This field is included only if the annual
adjustment has been performed:
/440 Regular tax.
/446 Annual adjustment tax.
/447 Extraordinary tax.
/449 Annual adjustment tax, previous year.

• Tax on non-cumulable income: This field is printed only if the annual
adjustment has not been performed.
/44B Lump sum pension payment tax.
/44C Recurring pension payments tax.
/445 Settlement tax.

• Income tax incurred in the fiscal year being declared:

/440 Regular tax.
/447 Extraordinary tax.
/446 Annual adjustment tax.
/449 Annual adjustment tax, previous year
Income tax withheld during the fiscal year being declared
/440 Regular tax.
/447 Extraordinary tax.
/44B Lump sum pension payment tax.
/44C Recurring pension payments tax.
/445 Settlement tax.
/446 Annual adjustment tax.
/449 Annual adjustment tax, previous year
Unless otherwise specified, the above technical wage types are read fromthe cumulated results table (MXCRT) for the processing year that hasbeen selected on the screen. When you specify that the wage typecorresponds to the previous year adjustment, it is understood that thesame table (MXCRT) is accessed for the year following the year selectedon the screen.
Payments due to employee leaving, retirement, pension or retirementpayments
The fields in this section will only have value in the report output ifit is determined that the worker received pension payments (if the totalincome for part payments is different to zero, or the total amount paidin a lump sum is different to zero). For employees who have not receivedthese payments, all fields in this section will report zero.

• Total amount of lump sum payment: wage type /456.


• Total income from recurring payments: wage type /45G.


• Amount received per day for retirement, pensions or retirement payments
in part payments: Obtained by dividing wage type /45G by wage type /40C.

• The amount that the employee would have received in the period if there
had been no lump sum payment for retirement, pension, or retirementpayments: wage type /45H.

• Number of days: wage type /40D. If the value of this wage type is zero,
then use the value of wage type /40C.

• Exempt income: Is the addition of wage types /424, /42A and /421.


• Taxable income: The result of subtracting wage types /424, /42A and /421
from wage types /45G and /456.

• Cumulable income: The result of subtracting wage type /424 from wage
type /45G, and then adding /45H and subtracting wage type /42A.

• Non-cumulable income: The result of subtracting wage type /421 from wage
type /456.

• Tax deducted: The sum of wage types /44B and /44C.

Other payments due to employee leaving

• The fields in this section will only contain a value in the report
output if the report detects that the worker received terminationpayments (amount paid is different to zero). For employees who have notreceived these kinds of payments, all the fields in this section willreport zero.

• Total amount paid: Wage type /457.


• Employee's years of service: wage type /45A.


• Exempt income: Wage type /425.


• Taxed income: The result of subtracting the exempt amount from the total
amount paid.

• Cumulable income: Wage type /45D. This wage type is read from the
results table (RT).

• Tax corresponding to the last regular monthly payment: It is obtained
from the wage type /45P. If this wage type does not exist, it iscalculated with taxed basis equal to the wage type /45D with direct rate'ME01' and the current proportion in the moment when the employeeleaves.

• Non-cumulable income: This is the result of subtracting the cumulable
income from the taxed income.

• Deducted tax: wage type /445.

Payments made to employees by the employer
These are obtained from user wage types by accessing the results table(RT) for all the periods in the processing year selected on the screen.These wage types do not need to be cumulated. Selection is based on thesetting made in the Implementation Guide, in the section MexicoPayroll -> Income Tax -> Wage types -> Definewage types for the Salaries Declaration.
It is important to remember that the realization values of evaluationclass 12 correspond to the paid and exempt amounts, while the reportgenerates taxed and exempt values as output. For payments that are 100%exempt, the wage type only has to be configured as exempt, and it is notnecessary to generate two wage types.
Realization values 10 and 11 (paid and exempt Savings Fund) are notused. Instead, the report accesses the following wage types:

• /420 Exempt savings fund.


• /458 Taxed savings fund.


• /45F Company contribution to the Saving Fund.

The report calculates the Savings Fund amounts that will be included inthe output.
The following realization values are no longer used in evaluation class12:

• 52 Paid compensation for retirement.


• 53 Exempt compensation for retirement.


• 54 Paid seniority bonus.


• 55 Exempt seniority bonus.


• 56 Paid retirement and pension.


• 57 Exempt retirement and pension.


• For payments made by other employers, values are obtained from infotype
0371 (deductions in other employment), all subtypes and wage types fromthe MXCRT table for all RFCs other than the current one. These valuesare only obtained for employees for whom the annual adjustment has beencalculated. Each value is allocated to its corresponding section (taxedor exempt).

• The wage types for other employers obtained from infotype 0371 are:

/460 Taxed income in other companies.
/461 Exempt income in other companies.

• The wage types for other employers obtained from the RT table are:

/400 Regular taxed basis.
/410 Extraordinary taxed basis.
/430 Regular exempt basis.
/431 Extraordinary exempt basis.
Wage type /457 less wage type /425.
Wage type /45G less wage type /424.
Wage type /456 less wage type /42A.

• Social Welfare is an exceptional case when applying exempt amounts. Each
of the values corresponding to paid concepts in evaluation class 12(values 14, 16, 18, 20, 22, 24, 26, 28, 30, 34, 36, 38 and 60); that is,in user wage types, should be configured. As for the exempt part, it isenough to configure only one value corresponding to exempt concepts (15,17, etc.). We advise you to configure wage type /422 (Social Welfareexemption) with one of these values. The report also accesses the valueof wage type /40Q (Social Welfare exemption, previous year), but you donot need to configure this last wage type with evaluation class 12.

• The report assigns the exempt amount that corresponds to each paid
social welfare concept in the same order in which they appear inevaluation class 12. This means it will first assign the exempt amountto paid Food Vouchers, then the exempt amount will decrease by theamount allocated, and if there is any remaining amount the exempt amountwill be assigned to paid Restaurant Vouchers, the exempt amount willagain decrease, etc, continuing in this way until no exempt amountremains.
In the case of assimilated employees, the fields in this section willremain empty.
Income tax for salaries and wages

• Sum of the taxed income for salaries and wages:

/400 Regular taxed base.
/410 Extraordinary taxed base.
Wage type /457 less wage type /425
Wage type /45G less wage type /424
Wage type /456 less wage type /42A.
/40M Ordinary taxed base previous year
If the annual adjustment for the employee has been calculated, then thevalues obtained in payments made by other employers should be added.These are obtained from table MXCRT for other RFC (wage types /400,/410, /456, /457, /45G, except from wage types /424, /425 and /42A) andinfotype Deductions in other jobs (0371) (wage type /460).

• Sum of the exempt salary and wages amount:

/430 Ordinary tax-exempt base - /420 Tax-exempt Savings fundcontribution
/431 Extraordinary tax-exempt base
/424 Recurring pension payment exemption
/42A Proportional exemption in lump sum pension payment
/40Q Welfare fund payment tax exemption
If the annual adjustment for the employee has been calculated, then thevalues obtained in payments made by other employers should be added.These are obtained from table MXCRT for other RFC (wage types /430,/431, /424 and /42A) and infotype Deductions in other jobs (0371) (wagetype /461).

• Tax deducted during the fiscal year: The values are obtained from
infotype 0371 (Deductions from other jobs), all subtypes and wage typesof the MXCRT for all RFCs other than the current one. The wage typesfrom other employers obtained from infotype 0371 are:
/464 Tax deducted in other companies
The wage types from other employees obtained from table MXCRT are:
/440 Regular tax.
/447 Extraordinary tax.
/44B Lump sum pension tax.
/44C Recurring pension tax.
/445 Settlement tax.
/446 Annual adjustment tax.

• Positive balance calculated in the fiscal year being declared, which the
employer will offset in the following year, or where reimbursement willbe requested: this field is not maintained in this report.

• Positive balance from the previous fiscal year not offset in the year
being declared: this field is not maintained in this report.

• Sum of the amounts that the worker was entitled to as credit on wage:
wage type /404 and wage type /40I. Wage type 40I is read from tableMXCRT of the following year.

• Credit on wage paid to the employee in cash during the fiscal year: wage
type /40I and wage type /44A. Wage type /44A is read from table MXCRTfor following year.

• Total income obtained for social welfare benefits: wage type /450.


• The sum of exempt income for social welfare benefits: wage types /422
and /40Q. Wage type /40Q is read from table MXCRT for the followingyear.