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Property Tax Declaration

Annual property declaration requires importing all Fixed Assets (FA) in the declaration with proper fields and calculation of Average Book Values for calculating Tax to be paid. The declaration should be based on FA Ledger Entries, as it is the way of calculating beginning and ending balances for each reporting period.

Setup​

  • Search for Tax Setup GE
  • On SMA GE Tax Authorities tab in Property Tax Authority select appropraiate Vendor
  • On SMA GE posting in Property Tax expense account for property tax declaration posting -On SMA GE No Series in Property Tax Declaration indicated No. Series for Property Tax Declaration

Assessed Tax Code Setup​

  • Search for Assessed Tax Code
  • Add new Assessed Tax Code
  • Indicated Code, Description ID, Description, Rate %,Territorial Unit ID, Territorial Unit for Property type FA
  • Indicated Code, Rate (Land), Territorial Unit ID, Territorial Unit, Species and Description ID, Species and Description, Area, Area with Exemption, Non Agricultural Rate (if applicable) for FA type Land
  • Select appropriate Assessed tax Code on FA card and indicate property type (Property/Land)

Generate Property Tax Declaration​

  • Search for Property Tax Declaration
  • In document header indicate : Outer Declaration No,Declaration Date, Reporting Year, Posting Date, Global Dimensions (optional),Beginning Period, End Period, Group FA
  • Click Generate Property/Land Lines, lines in Property Tax Declaration Lines and Land Tax Declaration Lines will be filled according to the previous accounting period information
  • Information on Property Tax Declaration Lines is filled with the following way
    • FA No. - Based on filled value in field No. in FA Card
    • Property Description ID - value from Description ID field on Assessed Tax Code which is selected on FA Card
    • Property Description - value from Description field on Assessed Tax Code which is selected on FA Card
    • Territorial Unit ID - value from Territorial Unit ID field on Assessed Tax Code which is selected on FA Card
    • Territorial Unit - value from Territorial Unit field on Assessed Tax Code which is selected on FA Card
    • Year of receiving the property - Property right Date on FA Card
    • Beginning BV - Sum of Posted FA Ledger Entries with the following filters: FA Setup.Default Depreciation Book, FA = FA No. for each number from Property Tax Declaration Lines – Property, Part of Book Value = Yes, FA Posting Date = “..Starting Date of Tax Period"
    • Ending BV - Sum of Posted FA Ledger Entries with the following filters: FA Setup.Default Depreciation Book, FA = FA No. for each number from Property Tax Declaration Lines – Property, Part of Book Value = Yes, FA Posting Date = “..Ending Date of Tax Period"
    • Average annual Book value of property - (Beginning BV + Ending BV) / 2
    • Property appraisal coefficient - To be filled manually
    • Tax Exemption Amount - filled automatically by full Average annual book value if Tax Exemption reason is not empty
    • Tax Exemption Reason - value from Exemption tax Allowance Code field on Assessed Tax Code which is selected on FA Card
    • Tax rate - value from Rate % field on Assessed Tax Code which is
    • Tax Amount - (Average annual book value of property – Tax exemption amount) x Rate %
    • Payment accrued for current reporting period - filled manually
    • Subject to additional accrual (+); Reduction (-) - Tax Amount – Payment Accrued for Current Reporting Period
  • Information on Land Tax Declaration Lines is filled with the following way
    • FA No. - Based on filled value in field No. in FA Card
    • Location ID - value from Territorial Unit ID field on Assessed Tax Code which is selected on FA Card
    • Location Unit Name - value from Territorial Unit field on Assessed Tax Code which is selected on FA Card
    • Species and Description ID - value from Species and Description ID field on Assessed Tax Code which is selected on FA Card
    • Species and Description - value from Species and Description field on Assessed Tax Code which is selected on FA Card
    • Area - value from Area field on Assessed Tax Code which is selected on FA Card
    • Area with Exemption - value from **Area with Exemption **field on Assessed Tax Code which is selected on FA Card
    • Tax Exemption Reason - value from Exemption Tax Allowance Code field on Assessed Tax Code which is selected on FA Card
    • Tax rate - value from Rate (Land) field on Assessed Tax Code which is selected on FA Card
    • Property Tax Amount - Area with Exemption x Tax Rate

Note: Tax Rate is generated from field Rate that is a % value, although, for this formula, the formula shouldn’t be divided on 100.

  • Field Property Tax to Pay is summed up according to Property/Land line infrmation (Property Tax Declaration Lines "additional accrual (+); Reduction (-)" + Land "Property Tax Amount")
  • Post the Property Tax Declaration
  • Posted Property Tax Declaration document will be created with accounting entries according to Property Tax Declaration setup

If Group FA is selected then fixed assets are grouped by Description ID and Territorial Unit ID in property lines and Territorial Unit and Species and Description in land lines.

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