City Tax (ICI) Determination 

Use

Companies in Italy can use the Flexible Real Estate Management solution for Italy to calculate, post, and report Italian city tax (Imposta comunale sugli immobili - ICI), according to Italian requirements.

Italian city tax (ICI) is a property tax paid to the Italian municipalities for every cadastral object located in Italy. ICI tax is paid on a yearly basis, usually in two installments.

Prerequisites

Before you can administrate and report the relevant ICI tax amounts, you have to set up the system appropriately by making certain Customizing settings.

The system provides different ICI tax calculation algorithms for the following real estate objects:

·        Building areas (aree fabbricabili)

·        Buildings (fabbricati)

·        Buildings type D (fabbricati non iscritti in catasto)

·        Agricultural land (terreni agricoli)

In Customizing, you have to maintain the required cadastral categories for these real estate objects. For buildings, you have to maintain the official cadastral categories (for example, A/1 or C/1), and for building areas and agricultural land, you have to maintain dummy cadastral category IDs. In addition, you also have to define city parameters, city tax rates, and payment installment parameters. To make these Customizing settings, carry out the relevant IMG activities in Customizing for Flexible Real Estate Management (Enterprise Extension) by choosing Country-Specific Settings ® Italy ® Tax Calculation for Italy ® City Tax (ICI).

Activities

Maintain ICI Master Data

The Italian cadastral objects are represented in the SAP system by architectural objects with a special cadastral object type. You have to first define an architectural object type for the Italian cadastral objects, using the naming convention ‘0xx’, where xx are freely-definable characters (for example, 0ICI). You can then organize the cadastral objects hierarchically as subordinate entries to the entity ‘Locality’. In this case, you have to create an architectural object for each locality in which your company has real estate objects.

To create an Italian cadastral object, proceed as follows:

       1.      On the SAP Easy Access screen, choose Accounting ® Flexible Real Estate ®Master Data ® Architecture Master Data ®Process Architectural Object.

       2.      On the Architectural Object screen, choose the Create Object icon.

       3.      In the Arch. Object Type field, select an object type starting with 0I.

       4.      Enter a number and code to identify the cadastral object.

The AO Architectural Object Create: General Data screen is displayed.

       5.      Assign a higher-level object, if necessary, by selecting a locality.

The system automatically generates the architectural object ID.

       6.      On the General Data tab page, enter the name and address of the cadastral object.

       7.      Navigate to the ICI Data tab page, and choose the Create Term icon to create the first time-dependent ICI data set.

You can choose the Documentation icon for an overview of ICI master data functions.

       8.      In the Time-Dependent Data dialog box, enter the validity date, calculation type, and category ID of the cadastral object, and, if necessary, additional data.

       9.      If necessary, assign a usage object.

You can assign cadastral objects to buildings, rental objects, participation groups, or properties. You can navigate to the assigned usage object by choosing the Display Assigned Usage Object icon.

You can also view the cadastral objects from the usage view. Display the usage object and choose the ICI data entry on the Overview screen to view the assigned ICI objects.

If you do not assign a usage object to the ICI object, you have to maintain the company code manually.

   10.      Specify a time interval for ICI data, as required. The data is displayed in a configurable overview table.

The usual time interval is a period of one year.

The system automatically creates the time intervals for subsequent years for all the real estate objects in the Italian Localization of RE-FX: ICI Processing report.

   11.      Save your entries.

 

To subsequently maintain the ICI tax data for each cadastral object time record you have created, proceed as follows:

   12.      Select a line in the ICI overview data.

   13.      In the Calculation dialog box, enter the required data.

You have to enter a basic amount for the ICI tax amount calculation. The ICI tax rates are proposed if the appropriate Customizing settings have been made. You can also enter the ICI tax rate manually by choosing the corresponding pushbutton next to the field.

All ICI tax rates are represented in promilles and you therefore also have to enter them in promilles.

   14.      If necessary, also enter a detraction, either as a percentage or as an actual amount. This is then subtracted from the ICI amount.

   15.      If necessary, select the Record Locked for Recalculation checkbox to ensure that any subsequent changes in Customizing or in the master data are not applied to your ICI tax data.

You usually make this selection after you have posted the payments manually.

You can lock mass ICI data using the Italian Localization of RE-FX: ICI Processing report.

   16.      In the Installments dialog box, select the Annual Payment checkbox if you want to pay the tax in one lump sum. Alternatively, if you want to pay in installments, you can select the Down Payment Locked checkbox to ensure that the amount of the first installment is fixed and cannot be subsequently changed. Any subsequent changes in Customizing then only have an effect on the second installment.

You make this selection after you have posted the first installment manually.

   17.      Save your entries.

 

The system calculates the relevant ICI tax amount. You can then execute the Italian Localization of RE-FX: ICI Processing report. For more information, see ICI Tax Reporting.