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Function documentation Property Tax Locate the document in its SAP Library structure

Purpose

Each municipality in Japan levies property tax. Under Tax Law 383 (Chihou-Zehou), you are required to file a property tax declaration with each municipal tax office each year, stating the values of your property as of January 1. The authorities then tax your property accordingly.

SAP ECC comes with a report that tax accountants can use to prepare the tax declaration. Cost center managers can use the same report to forecast how much property tax they will have to pay in the current year and the year after.

Activities

If you want to use the report, make the settings for it in Customizing for Financial Accounting (FI), by choosing Asset Accounting ® Information System ® Property Tax Report. Then, maintain the asset master records as described in Asset Master Record.

Over the course of the year, post asset transactions following the procedures described under Day-to-Day Activities. After the fiscal year has ended, prepare the tax declaration using the Property Tax Report.

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