In this blog post, I would like to share the collaborative experience of the SAP localization team, customers, and partners in creating a software solution that is specifically tailored for Portuguese customers in the Human Capital Management domain.
In December 2022, the Portuguese government published the 2023 National Budget (dispatch n.º 14043-B/2022). Within this budget, a significant legal change was introduced, revolutionizing the formula for calculating the withholding tax (IRS) in Portugal, effective from the second semester of 2023. This change had a profound impact on the core of tax calculation, affecting all active workers and pensioners of companies operating in Portugal. You can read about this legal change in the post New tax calculation for Portugal.
To support SAP’s customers running operations in Portugal, the SAP localization team has announced this legal change to SAP’s customers and right away embarked on a six-month development journey to deliver a tailored software solution for it. Aiming to ensure that the result would meet the needs of the entire market, SAP established a collaborative work group with more than 10 customers and partners, from different lines of business, involving them from requirement refinement to testing.
The delivered output covered the entire affected process, from tax table loading to payroll calculation. A completely new functionality has been created to allow customers to easily upload the new tax rates. The payroll calculation covers the new formula for 20 different income types, supporting complex scenarios that involve reduced rate due to legal benefits and rebates for employees, dependents, disabled dependents, and disabled spouses.
In order to showcase and rollout the new changes, the SAP localization team organized a hybrid session with the Portuguese User Group (GUSP) on June 1st. Around 50 customers were present at the SAP Office in Lisbon, Portugal, and around 85 participated virtually. During this event, the new tax table load and payroll processing calculation was presented, highlighting its ability to seamlessly integrate with the existing system. The GUSP meeting served as a platform to address any concerns and gather valuable feedback from SAP’s customers.
July 2023 was the month of the first payroll run with the new legal rules. SAP considered the project a success, with minimal disruptions and great customer satisfaction. Jeronimo Gandra, Area Coordinator for People Shared Services at Sonae MC company, expressed his gratitude, stating, "The meetings were crucial in presenting the impacts of fiscal / tax changes and aligning efforts to ensure a legally appropriate solution. We are proud to have been closely involved with the SAP Localization team that successfully delivered on time, without compromising quality. The effectiveness of communication through the working group was fundamental.”
I hope that this case demonstrates the importance of SAP localization and emphasizes SAP's position as a reliable partner in navigating complex business regulations. In 2023 alone, more than 20 legal changes were implemented for Portugal in the context of Human Capital Management. It also showcases the value of involving customers throughout the development process to support them in remaining compliant with government regulations and fulfilling their needs. For more information regarding localization capabilities in SAP, please visit sap.com/localization.
In December 2022, the Portuguese government published the 2023 National Budget (dispatch n.º 14043-B/2022). Within this budget, a significant legal change was introduced, revolutionizing the formula for calculating the withholding tax (IRS) in Portugal, effective from the second semester of 2023. This change had a profound impact on the core of tax calculation, affecting all active workers and pensioners of companies operating in Portugal. You can read about this legal change in the post New tax calculation for Portugal.
To support SAP’s customers running operations in Portugal, the SAP localization team has announced this legal change to SAP’s customers and right away embarked on a six-month development journey to deliver a tailored software solution for it. Aiming to ensure that the result would meet the needs of the entire market, SAP established a collaborative work group with more than 10 customers and partners, from different lines of business, involving them from requirement refinement to testing.
Workzone group to interact with customers
The delivered output covered the entire affected process, from tax table loading to payroll calculation. A completely new functionality has been created to allow customers to easily upload the new tax rates. The payroll calculation covers the new formula for 20 different income types, supporting complex scenarios that involve reduced rate due to legal benefits and rebates for employees, dependents, disabled dependents, and disabled spouses.
In order to showcase and rollout the new changes, the SAP localization team organized a hybrid session with the Portuguese User Group (GUSP) on June 1st. Around 50 customers were present at the SAP Office in Lisbon, Portugal, and around 85 participated virtually. During this event, the new tax table load and payroll processing calculation was presented, highlighting its ability to seamlessly integrate with the existing system. The GUSP meeting served as a platform to address any concerns and gather valuable feedback from SAP’s customers.
July 2023 was the month of the first payroll run with the new legal rules. SAP considered the project a success, with minimal disruptions and great customer satisfaction. Jeronimo Gandra, Area Coordinator for People Shared Services at Sonae MC company, expressed his gratitude, stating, "The meetings were crucial in presenting the impacts of fiscal / tax changes and aligning efforts to ensure a legally appropriate solution. We are proud to have been closely involved with the SAP Localization team that successfully delivered on time, without compromising quality. The effectiveness of communication through the working group was fundamental.”
I hope that this case demonstrates the importance of SAP localization and emphasizes SAP's position as a reliable partner in navigating complex business regulations. In 2023 alone, more than 20 legal changes were implemented for Portugal in the context of Human Capital Management. It also showcases the value of involving customers throughout the development process to support them in remaining compliant with government regulations and fulfilling their needs. For more information regarding localization capabilities in SAP, please visit sap.com/localization.
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