Property Tax Declaration
Annual property tax 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 for the reporting period. 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 the Tax Authorities tab, in Property Tax Authority, select the appropraiate Vendor,
- On SMA GE posting tab, in Property Tax, select the expense account for property tax declaration posting,
- On No Series in Property Tax Declaration, indicate No. Series for Property Tax Declaration,
- Search for Territorial Unit and fill ID, Name, and Tax Rate for Property,
- Search for Land Territorial Unit and fill ID and Name for Land,
- Search for Land Types and fill ID, Name, Unit of Measure, Non-Agricultural Rate (if relevant),
- On each FA location, indicate Territorial Unit for Property and Land Territorial Unit for Land fixed assets,
- For each FA indicate in Property Types Land or Property, which will activate the Land Tax or Property Tax fields,
- If Property type is indicated on FA, Territorial Unit ID and Territorial Unit Name will be retrieved from FA location; Property Type ID, Property Type Description, Acquisition Year, Appreciation Coefficient, Tax exemption ID fields need to be filled outaccording to relevance. Tax Rate will be filled out automatically,
- If Land type is indicated on FA, Land Territorial Unit ID and Land Territorial Unit Name will be retrieved from FA location; Land Type ID, Land Type Name, Tax exemption ID fields need to be filled out according to relevance. Tax rate will be filled out automatically.
In the Income Tax Declaration, the system repeats the fields of RS.GE Income Tax Declaration.
Genaration of Property Tax Declaration
- Search for Property Tax Declaration.
- In the document header, indicate:
- Outer Declaration No,
- Declaration Date,
- Reporting Year,
- Posting Date,
- Global Dimensions (optional),
- Beginning Period and End Period for Land and Property - Mark Group FA checkbox if needed to group the fixed assets.
- Click Generate Property/Land Lines; the lines in Property Tax Declaration Lines and Land Tax Declaration Lines will be filled out according to the indicated period information.
Information on Property Tax Declaration Lines is filled out as follows:
- FA No. - Based on filled value in field No. in FA Card; in case Group FA is used, this field is empty,
- Property Description ID - value from Description ID on FA Card,
- Property Description - value from Description field on FA Card,
- Territorial Unit ID - value from Territorial Unit ID field on FA Card,
- Territorial Unit - value from Territorial Unit field 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 - Appraisal coefficient from FA card,
- Tax Exemption Amount - If Tax exemption reason is filled out, then fill Avg annual book value; if not filled – leave blank,
- Tax Exemption Reason - Tax exemption ID from FA Card,
- Tax Rate - Tax rate from FA Card, Tax Amount - ((Avg annual book value * Property appraisal coeff.) – Tax exemption amount) * Tax rate, Payment accrued for current reporting period - filled out manually, Subject to additional accrual (+); Deduction (-) - Tax Amount – Payment Accrued - Tax amount calculated for Previous reporting period,
- Additional accrual/deduction - Tax amount – Payment accrued.
Note: If in property tax declaration header „Group FA“ checkbox is enabled, then amounts have to be aggregated for each combination of Property ID, Territorial ID, Tax exemption ID, Acquisition Year, Appraisal coefficient (PIVOT).
Information on Land Tax Declaration Lines is filled out as follows:
- FA No. - Based on filled value in field No. in FA Card, Only those FAs that have checkbox “Land”, Property right date < Declaration Date and Status either Inventory or Operation,
- Location ID - value from Territorial Unit ID field on FA Card,
- Location Unit Name - value from Territorial Unit field on FA Card,
- Species and Description ID - value from Land Type ID on FA Card,
- Species and Description - Land type Name on FA Card,
- Area - value from Quantity field on FA Card,
- Area with Exemption - If tax exemption ID is filled out, then 0; if not filled – then Quantity,
- Tax Exemption Reason - value from Field tax exemption ID which is selected on FA Card,
- Tax rate - value from Tax Rate (Land) field on FA Card,
- Non-agricultural Rate - from field Non-agricultural rate on FA Card,
- Property Tax Amount - Area without exemption * Tax Rate * Non-agricultural Rate (if applicable).
Note: Tax Rate is generated from the Rate field that has a % value, although for this formula, the formula shouldn’t be divided by 100.
Note: If in property tax declaration header Group FA checkbox is enabled, then quantities and amounts have to be aggregated for each combination of Land Type ID, Land Territorial unit.
Post the Property Tax Declaration
Posted Property Tax Declaration document will be created with accounting entries according to Property Tax Declaration setup.
Land and Property taxes will be seperate transactions but with the same account numbers in postings.
In Property Tax Declaration, the system repeats the fields of Revenue Service on the web portal's Property Tax Declaration and can be exported in the XML format and uploaded to the Revenue Service portal.