Property Tax
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Table of Contents Czech Republic... 6 Property Tax... 7 Customizing... 9 Customizing for Property Tax Calculation... 10 Master Data... 11 Maintaining Master Data for Real Estate Objects... 12 Reports... 14 Import of Key Lists for Property Tax... 15 Maintenance of Municipality Settings... 17 Maintenance of Average Prices for Cadastral Districts... 19 Maintenance of Tax Office Settings... 20 Property Tax Cockpit... 21 Property Tax Posting... 23 (C) SAP AG 5
Czech Republic This localization is designed for use by companies in the Czech Republic. It comprises Flexible Real Estate Management (RE-FX) functions that follow laws and business practices particular to the Czech Republic. This documentation explains how the Czech RE-FX countryspecific functions work and how to customize the system according to local requirements. Implementation Considerations To use RE-FX, you have activated the business function Financials Extension (EA-FIN). You make this setting in Customizing under Activate Business Functions. For more information, see Financials Extension (EA-FIN) [External]. Features Customizing To use the RE-FX localization for the Czech Republic, you have to activate the program code for the Czech Republic. You do so in Customizing for RE-FX under Country-Specific Settings Activate Country-Specifics. To use the localized functions, make the settings described under Customizing. Country-Specific Functions This localization enables you to process property tax [External] as required in the Czech Republic. (C) SAP AG 6
Property Tax In the Czech Republic, companies must pay property tax on all their properties that are subject to property tax. The country-specific functions enable you to process the property tax and make the annual payments in the Czech Republic. The property tax consists of two tax types: building tax and land tax. Building Tax The real estate objects for which you need to calculate and pay building tax are the buildings, flats, and nonresidential premises. The building tax is calculated as follows: the tax base is multiplied with a basic tax rate, which depends on the purpose of the building. In some cases, this result is further multiplied with a coefficient. The coefficient rate is influenced by the number of inhabitants in a given municipality, except for Prague and certain spas, holiday resorts where a special coefficient is used. For the calculation of both the tax base and the tax rates, coefficients are defined by law or by local authorities. Land Tax The real estate objects for which you need to calculate and pay land tax are the lands, independently of the number of owners in case of co-ownership of the corresponding lands. The amount of land tax is shared according to the proportion of the owners. The land tax calculation formula is similar to the one of the building tax. Process 1. You download all the key lists you need for the property tax calculation form the Web site of the Ministry of Finance with the Import of Key Lists for Property Tax [Page 15] program. 2. You make the required Customizing [Page 10] settings. 3. You maintain the master data of all your real estate objects. 4. The system calculates the property tax based on the master data and Customizing settings with the Property Tax Cockpit [Page 21]. 5. Each month you make a periodic posting with the Property Tax Posting [Page 23] program and the system accrues and posts the property tax. Account Debit Credit Cost of property tax 1,000.00 Accrual 1,000.00 Example of monthly posting of accruals 6. You pay the calculated property tax amount in 1 or 2 installments for the current year on the dates defined by law. If the tax amount does not exceed CZK 5000, you are required to pay the tax in one installment. (C) SAP AG 7
If the tax amount is less than CZK 30 per owner or less than CZK 50 per co-owner of the property, the tax authorities do not impose it. 7. You transfer the accrual amounts of the half of the year to the vendor account with the Property Tax Posting [Page 23] program. Account Debit Credit Accrual 6,000.00 Vendor (tax authority) 6,000.00 Example of posting a property tax installment On December 1, you post the second installment. The accrual is settled in the run of the Property Tax Posting [Page 23] program in December. 8. You generate your ordinary tax return with the Property Tax Cockpit [Page 21] program and you submit or post it to the tax authorities in an XML format by January 31, the current year. The cockpit also enables you to trigger a control program from the Web site of the Ministry of Finance, which checks the correctness of your tax return. 9. You close the current fiscal year with the Property Tax: Year-End Closing program. To access the program, on the SAP Easy Access screen, choose Accounting Flexible Real Estate Management Country Specifics Czech Republic Property Tax Property Tax: Year-End Closing. 10. After you have closed the year and a problem appears that affects the tax amount, you can reopen it with the same program and create and submit a correction or supplementary tax return to the tax authorities. (C) SAP AG 8
Customizing Country Version Czech Republic comes with a property tax calculation procedure. The following information describes where you make the Customizing settings that are specific to the Czech Republic. (C) SAP AG 9
Customizing for Property Tax Calculation So that you can use the function for calculating, posting, and reporting property tax correctly, you must make the following settings in Customizing for Flexible Real Estate Management (RE-FX) under Country-Specific Settings Czech Republic Property Tax : Define Property Categories and Property Types Define Settings for Property Tax Posting Assign Area Types to Measurement Types Define Coefficients for Property Tax Define Tax Offices Define Counties (C) SAP AG 10
Master Data This documentation describes how you maintain master data of real estate objects for the property tax calculation. (C) SAP AG 11
Maintaining Master Data for Real Estate Objects To calculate the property tax using the Property Tax Cockpit [Page 21] program, you must create or maintain the master data of all your real estate objects. Prerequisites You have completed the following activities: Made the settings as described in Customizing for Property Tax Calculation [Page 10] Downloaded the key lists from the Web site of the Ministry of Finance with the Import Key Lists for Property Tax [Page 15] report Procedure To enter data about your real estate objects, proceed as follows: 1. On the SAP Easy Access screen, choose Accounting Flexible Real Estate Management Master Data o o o Process Land Process Building Process Rental Object 2. On the General Data tab page, enter the name of the real estate object. 3. On the Measurements tab page, enter all the measurement types that are relevant to the given real estate object (for example, total area, covered area, business area, or the area exempted from tax) with the measurement amount and measurement unit. 4. Navigate to the Property Tax (Czech Rep.) tab page. 5. Specify whether your real estate object is subject to property tax by selecting the Tax Subject checkbox. 6. Enter the code of the municipality/city district, district, and local subdistrict your real estate object is located. 7. Enter the official code of the responsible tax office. 8. Specify the section of your tax return in which the property tax of the given real estate object is included. 9. Specify the property type. 10. If the property type is included in the II/A section in the tax return, and the real estate object is owned by more than one owner, you must enter the co-ownership share in the Co-Own. Share field in fragment format (numerator/denominator). If the real estate object is land, enter the master data as follows: 1. In the Parcel field, enter the 7 digit parcel number. 2. Enter the size of the area that is exempted from tax (if any), the exemption period, and the code of tax exemption. 3. Enter the officially estimated price of the real estate object, if any. (C) SAP AG 12
To do so, select the Est. Price checkbox first and then you can enter the price in square meters. 4. Specify the legal relation of your real estate object. If the real estate object is a building, enter the master data as follows: 1. In the Registration No field, enter the number that identifies your real estate object on cadastral maps. 2. Assign your building to one or more parcels the building occupies. 3. If your building is located on land that is owned by another owner, select the Third- Party Plot checkbox. 4. Specify the legal relation of your real estate object. 5. Enter the year when the building was completed. If you use a part of the building for business purposes, check its size in the Business Area field. 6. Enter the exemption period, and the code of tax exemption, if any. 7. In the Number of Floors field enter the number of floors in your building. 8. If your building is located in the territory of a national park, select the National Park checkbox. If the real estate object is a rental object, enter the master data as follows: 1. In the Registration No field, enter the number that identifies your real estate object on cadastral maps. 2. Assign your rental object to one or more parcels the rental object occupies. 3. If your rental object is located on land that is owed by another owner, select the Third- Party Plot checkbox. 4. Specify the legal relation of your real estate object. 5. Enter the year when the rental object was competed. 6. If your rental object is exempted from tax, select the Fully Exempted checkbox first, and enter the exemption period, and the code of tax exemption. 7. Assign the given rental object to units (for example, in case of more flat units). (C) SAP AG 13
Reports Country Version Czech Republic comes with the following tools and reports in Flexible Real Estate Management (RE-FX) that you can use to manage the property tax for your property. In addition, it offers you the following functions: Import of Key Lists for Property Tax [Page 15] from the Web site of the Ministry of Finance Maintenance of Municipality Settings [Page 17] Maintenance of Tax Office Settings [Page 20] Maintenance of Average Prices for Cadastral Districts [Page 19] Property Tax Cockpit [Page 21] Property Tax Posting [Page 23] (C) SAP AG 14
Import of Key Lists for Property Tax In the Czech Republic, the Ministry of Finance enables the taxpayers to download a large amount of data from their Web site. This program enables you to download and import the key lists about the following areas: Regional tax offices Municipalities Cadastral districts Land prices Tax exemption codes Municipality coefficients Features Selection In the Connection Type group box, choose the HTTP connection you want to use for importing the key lists. In the Default/Explicit HTTP Connection group box, you additionally need to enter the connection details. In the Key List group box, choose the key list. You can choose only one key list at the same time because of the huge amount of data that is downloaded from the Web site. For the key list of municipal coefficients, you additionally need to choose the coefficient type in the Coefficient Type group box. After you imported all the coefficients by using this program, you can manually add new coefficients, or update existing ones in the Maintenance of Municipality Settings [Page 17] transaction. When the next time you import the most up-to-date coefficients from the Web site of the Ministry of Finance, you can choose one of the following options in the Manual Modifications group box: The system automatically overwrites all the coefficient values you manually changed and created. The system keeps all the coefficient values you manually changed and created and does not overwrite them with the downloaded updated values. The system asks for your confirmation to overwrite the manually changed and created coefficient value every time it finds one during the download. Note: If you run the import as a background job, the system automatically keeps the manually changed and created coefficient values. Output The report generates different ALV files for each key list from the downloaded data. If you selected Municipalities, the ALV list contains all the coefficients and marks the manually changed and created ones in the Keep Data column. If you selected Municipality Coefficients, the ALV list contains only the coefficients that were manually changed or created. (C) SAP AG 15
Choose Back to continue the process. Activities To access the program, on the SAP Easy Access screen, choose Accounting Flexible Real Estate Management Country Specifics Czech Republic Property Tax Import Key Lists for Property Tax. (C) SAP AG 16
Maintenance of Municipality Settings You can use the transaction to maintain the basic settings of the municipalities or cadastral districts, and to define the corresponding municipality regulations and coefficients for the property tax calculation. Prerequisites You have completed the following activities: Made the settings as described in Customizing for Property Tax Calculation [Page 10] Downloaded the key lists from the Web site of the Ministry of Finance with the Import Key Lists for Property Tax [Page 15] report Activities To access the transaction, on the SAP Easy Access screen, choose Accounting Flexible Real Estate Management Country Specifics Czech Republic Property Tax Maintain Settings for Municipalities. You first define the corresponding municipality/city district settings on the Municipalities Property Tax screen. For each municipality/city district, you enter the number of its inhabitants and the responsible tax office code. The number of inhabitants define the coefficient that is used for the property tax calculation. In special cases (for example, inhabitants over 50,000 such as Prague, spas, holiday resorts), a higher coefficient is used that does not depend on the number of inhabitants. If you define a land, you additionally need to enter the corresponding cadastral district the land is located on the Cadastral District screen. For all your real estate objects, you need to specify the district (with an unofficial code) within the municipality for the purpose of defining municipal regulations on the Districts screen. You enter the municipal regulation that regulates the calculation of property tax for each real estate object on the Municipal Regulations screen and you also enter its validity period. You enter the districts that are affected by the municipal regulation on the Districts in Regulation screen. You enter the property category to which your real estate object belongs and select the corresponding property type that is assigned to the property category by law. You can enter the coefficient that the system can use for the tax calculation. This coefficient must be dependent on the number of inhabitants, so you are not allowed to enter an exceptional coefficient. If you have entered a special coefficient for the municipality on the initial screen, the system does not allow you enter any additional coefficients here. After you imported all the coefficients by using the Import Key Lists for Property Tax [Page 15] program, you can manually add new coefficients, or update existing ones in this transaction. When the next time you import the (C) SAP AG 17
most up-to-date coefficients from the Web site of the Ministry of Finance, you can specify whether you want the system to keep your manual changes or overwrite them during the download. (C) SAP AG 18
Maintenance of Average Prices for Cadastral Districts You use this transaction to maintain the average of land prices (in CZK) per square meter as defined by law for each cadastral district. To access the transaction, on the SAP Easy Access screen, choose Accounting Flexible Real Estate Management Country Specifics Czech Republic Property Tax Maintain Average Prices for Cadastral Districts. Prerequisites You have made the following settings: Made the settings as described in Customizing for Property Tax Calculation [Page 10] Downloaded the key lists from the Web site of the Ministry of Finance with the Import Key Lists for Property Tax [Page 15] report Activities You can manually change the land price or add more cadastral districts as follows: Enter a cadastral district Assign it to the relevant municipality/city district Enter the date from which the land price is valid Enter the actual land price as defined by law (C) SAP AG 19
Maintenance of Tax Office Settings You use this transaction to assign the business partner (vendor) account number of a tax office to its official code. It enables you to post either the accruals on a monthly basis or the amount of quarterly installments to the G/L account of the vendor. The vendor is the tax office. To access the transaction, on the SAP Easy Access screen, choose Accounting Flexible Real Estate Management Country Specifics Czech Republic Property Tax Maintain Tax Office Settings. Prerequisites You have made the following settings: Made the settings as described in Customizing for Property Tax Calculation [Page 10] Downloaded the key lists from the Web site of the Ministry of Finance with the Import Key Lists for Property Tax [Page 15] report Activities You can make the following settings in this transaction: Enter the code of the tax office that is responsible for the area your property is located in. Assign the business partner account number of the same tax office so that the system can post the property tax to the relevant account. Assign a key to this account that identifies the partner's bank type (C) SAP AG 20
Property Tax Cockpit This tool enables you to display, calculate, and maintain the property tax data of all your real estate objects. The tool generates an ALV list that displays the data according to tax offices (summary) or single property tax objects. The report also enables you to generate an XML file from the output list that you can submit to the tax authorities. Before submitting the XML file you can check whether the calculation and the file are correct with a program that you can download from the Web site of the Ministry of Finance by choosing the Control Program button. To access the report, on the SAP Easy Access screen, choose Accounting Flexible Real Estate Management Country Specifics Czech Republic Property Tax Property Tax Cockpit. Prerequisites You have made the following settings: Made the settings as described in Customizing for Property Tax Calculation [Page 10] Downloaded the key lists from the Web site of the Ministry of Finance with the Import Key Lists for Property Tax [Page 15] report Features Selection Select your company code and fiscal year as required. In the Output Control group box, by selecting the Tax Office or Item radio buttons you can define the grouping of your taxable objects in the output list. If you also choose the Include All Objects checkbox, the system includes the real estate objects that are not even subject or are exempted from property tax. Output The system generates an ALV list that displays all the real estate objects that are subject to property tax, optionally also including the objects that are not subject to tax. If you selected the Tax Office as the grouping method on the selection screen, and you want to change it to Item view, you can use the TO/Items button at the top of the ALV list. The system lists all the messages in an application log at the top of the list. Item view: The system lists the protocol from tax calculation run in an application log at the top of the list. If you want to check the data the system used for the tax calculation, choose Detail. The system displays the data in a separate dialog box. With the Property button, you can call the master data of the corresponding real estate object that you can change. If you make any change, you need to recalculate the property tax amount for the given tax office. The system stores the changes in the master data and lists them in a document that you can display with the Change Doc button. Tax Office view: You can lock the calculated tax for a certain tax office to prevent it from changing or recalculating the tax. You can calculate the property tax for each tax office by choosing the (C) SAP AG 21
Calculate button. It calls the Calculate Property Tax program. The system lists the protocol from tax calculation run in an application log at the top of the list. The system also stores the reason for creating a supplementary tax return that you can check with the Reason button. You can generate and store an XML file that contains the tax return with the XML File button. You can submit the file in an electronic format to the tax office. You can also call the Calculate Property Tax program directly on the SAP Easy Access screen, by choosing Accounting Flexible Real Estate Management Country Specifics Czech Republic Calculate Property Tax where you enter data as follows: In the Data of Representative group box, you enter the name, phone number, e- mail address, title of the representative. You additionally specify his or her relationship to the taxpayer, the code of representative defined by the tax authorities, and by selecting the Use Data of Representative you specify whose name is included in the tax return as a representative. In the Created by group box, you enter data about the person who creates the tax return. The program collects the property-tax relevant data and includes in the tax return on the basis of your settings on the selection screen. (C) SAP AG 22
Property Tax Posting You can use this report to make postings that are related to property tax. You can post the costs tax on a regular basis, for example, on a monthly basis You can post your liabilities to the corresponding tax office (payment of installments) To access the report, on the SAP Easy Access screen, choose Accounting Flexible Real Estate Management Country Specifics Czech Republic Property Tax Post Property Tax. Prerequisites You have made the following settings: Made the settings as described in Customizing for Property Tax Calculation [Page 10] Downloaded the key lists from the Web site of the Ministry of Finance with the Import Key Lists for Property Tax [Page 15] report Features Selection In the General Selection group box, enter your company code and the fiscal year. In the Posting Parameters group box, enter the name of batch input session, the document and posting dates, and the maximum number of items. You also need to specify the posting type. Costs If you want to post costs, you additionally need to enter the posting period. By selecting the Calculation with Supplement checkbox, the system calculates the property tax amount for the given period with the involvement of the amount posted in the previous periods. Liabilities If you want to post liabilities, you need to define the sequential number of the installment, the baseline payment date and the payment method. If you want to pay the property tax as a one-time payment, select Installment 2, and the Installment with Supplement checkbox. According to the legal requirements, if your property tax is less than 5000 CZK, you are allowed to pay it only as a one-time payment. In this case, select Installment 1 and the Installment with Supplement checkbox. Output The report generates an ALV list that displays the total tax amount, the already posted tax amount, and the tax amount that still needs to be posted for the given year. When posting liabilities, the system additionally lists the already posted installments. (C) SAP AG 23