The system offsets taxable revenue with existing, tax-reducing amounts from the netting totals.
The system offsets the remaining revenues with the unused exemptions.
The following revenue from capital assets is relevant for the flat withholding tax:
Deposits at financial institutions
Capital yields from securities
Dividends
Revenue from investment funds
Revenue from certificates
An account managing system transfers the revenues from capital assets.
A securities system transfers information about revenues and losses resulting from stock transactions and other securities transactions.
A money market system transfers the interest for fixed deposits or the overnight money resulting from capital assets.
Note
The calling system transfers the tax-free amounts to SAP Capital Yield Tax Management with the information that tax does not have to be calculated.
The calling system transfers the taxable amounts to SAP Capital Yield Tax Management separately because only the calling system is familiar with the business transaction information.
The system performs the business-specific distribution of revenues and losses between partners. SAP Capital Yield Tax Management always uses the partner (account holder) determined by the turnover as the taxpayer.
You have defined the CYT products.
In the connected systems, you have created the required products (for example, a current account or the securities product).
You have defined the revenue type, such a revenue or loss.
You have made all the relevant settings for loss compensation in Customizing for
.The system uses a taxable amount as the basis for processing. It processes this amount according to the type of turnover as follows:
In the case of incoming revenue, the system creates loss compensation based on the losses for the account holder. Revenue is distributed according to the defined compensation groups.
In the case of incoming losses, the system recalculates the taxes due for the current year. If a loss that is to be included remains, a used exemption amount is recalculated. The system assigns the loss directly to the netting total that is assigned to the CYT product.
Note
A compensation between debit interest and credit interest is not permitted when a loss is transferred (negative credit amount).
The loss compensation has tax-reducing effects and occurs between totals. However, the system offsets losses from the sale of stocks only with the revenue from stocks. The system can offset losses from other revenue with all other revenue types. You have defined the sequence of the netting totals that will be offset against potential losses for the tax clearing of losses.
Clearing Process
The following loss totals exist for each business partner:
Loss total for stocks: Losses resulting from sale of stocks
Loss total - miscellaneous: All other losses
The aim of these loss totals is to first use revenue reported for business transactions to reduce existing loss totals. Other revenue may not use the loss total for stocks. On the other hand, you may use revenue from stocks to clear other losses.
The system does not create loss totals until there are no further taxes that need to be cleared. When the system reports loss of revenue, taxes that were debited during the year are recalculated. The tax refund is restricted by the (negative) tax liability of the turnover and by the total of the taxes debited in the current year. The system sets the unused taxable amount in the relevant loss total.
The system always manages loss totals for the account holder. The loss total is not used for the alternative taxpayer. The system does not perform loss total clearing for connected partners.
The following netting totals exist for each business partner:
Netting total for stocks: Revenue from sale of stocks, dividends
Netting total - miscellaneous: Other revenue, for example: Interest from deposits
The netting totals are needed to process the following business positions:
Collection of losses on the account holder level to be offset with revenue at a later time
Collection of foreign withholding tax that cannot be used directly for the compensation of taxes due relating to a business transaction. The system offsets this with taxes that are due.
The system offsets foreign withholding tax after it has calculated the taxes due for revenue. This means after all netting based on the gross revenue has taken place. To do so, the system offsets only those tax debts to which foreign withholding taxes were assigned in Customizing.
To post revenue and losses, use transaction /IBS/CY_MAN_LOSS Post Losses Manually.
When you process business data for the flat withholding tax, you include loss totals relating to the partner. The following cases are possible:
Revenue resulting from the sale of stocks
Reduction of the taxable amount from the loss total for stock and related reduction of the loss total
Reduction of the taxable amount from the loss total for miscellaneous and related reduction of the loss total
Reduction of the taxable amount from the exemption amount and the reduction of the exemption amount
Determination of taxes based on the remaining taxable amount
Reduction of taxes by including withholding tax paid abroad
Other revenue
Reduction of the taxable amount from the loss total for miscellaneous and related reduction of the loss total
Reduction of the taxable amount from the exemption amount and the reduction of the exemption amount
Determination of taxes based on the remaining taxable amount
Reduction of taxes by including withholding tax paid abroad
Losses resulting from the sale of stocks
Reduction of taxes paid during the year and the reduction of the (negative) taxable amount
Recalculation of the used exemption amount
The system transfers the remaining loss amount to the loss total for stocks
Other losses
Reduction of taxes paid during the year and the reduction of the (negative) taxable amount
Recalculation of the used exemption amount
The system transfers the remaining loss amount to the loss total for miscellaneous