Registration Tax

Definition

Registration Tax in Italy – “Imposta di Registro (IRE)”

Registration tax that is applied to every lease-out.

Registration tax (IRE) is normally paid by the landlord, but he or she can demand a portion of this back from the tenant (IRE Payback) You can define a percentage for this in Customizing and assign it to the lease-out. Only one payment is made to the tax authorities.

Registration tax (IRE) is due for:

Commercial lease-out	Only once when the lease begins, and each time the term is changed.
Residential lease-out	Annually, as a percentage of rent (you can set a minimum amount) If the lease term is not exactly one year (for instance 15 months), the landlord and tenant can decide if the IRE for the extra months is distributed to the first 12 months, or if it should be paid in the second year.

Commercial lease-out

Only once when the lease begins, and each time the term is changed.

Residential lease-out

Annually, as a percentage of rent (you can set a minimum amount)

If the lease term is not exactly one year (for instance 15 months), the landlord and tenant can decide if the IRE for the extra months is distributed to the first 12 months, or if it should be paid in the second year.

Exceptions are possible, for example, a combination of fixed amounts and use of percentages.

Prerequisites

Make the necessary settings in Customizing:

SAP Customizing Implementation Guide → Real Estate → Country Specifics → Italy → Registration Tax (IRE)

→ Maintain Tax Codes

→ Maintain Variables

→ Tax Code

→ Office Master Data

Use

The landlord or the tenant has to report the lease-out to the government registration office→levy of registration tax (imposta di registro). The landlord pays the tax and can claim a percentage back from the tenant (IRE payback).

The system calculates and posts the tax in the registration tax master data based on your entries.

Note:The contract does not have to be active in order for registration tax to be calculated.

Procedure

Choose

Accounting → Real Estate Management → Rental → Lease-Out → Create

On the initial screen, enter the contract type, the adjustment type, rental start, and, for open-ended contracts, a notice type.

In the menu bar, choose IRE master data . The IRE master data screen appears .

Enter your registration data. Double click on the given field:

- Registration date of contract

- Series number

- Registration number

Enter the responsible registration office.

This data has to be entered for the first year of the contract and for each extension, but can be changed later at any time.

IRE Calculation

In this screen area, you maintain the parameters for calculating the registration tax. Define:

Input Field
Billing date	Due date of the registration tax amount
Calculation type	Calculation type of the registration tax amount
Office value	Additional amount that can be levied by the authorities. This amount is added to the IRE amount (for example, fee for postage stamps).
Not Input Fields
Rental	Basic rent. Inherited from the condition on the lease-out.
Rental amount	Basis for the tax calculation, derived from the basic rent and the number of months in the fixed-term lease-out.
IRE value	Final registration tax amount that has to be paid on the due date. Entered by the system.
Accounting description	Name of the line item related to the registration tax. The default value is the name of the calculation type, which can be entered in Customizing. However, you can change this name in the IRE master data by double clicking on the field.
IRE Payback	Set this indicator if the tenant should be requested to pay back a portion of the tax to the landlord (seeDefinition). The system calculates the amount using the percentage you entered in Customizing and enters it in this field. The payback amount is included in the cash flow.

Example

Commercial lease-out

Term: January 01, 2000 – December 31, 2003

Extension by 1 year on October 31, 2003

Rent 1,000€ annually, 20% tax

Fixed tax amount 52€

→Registration Tax:

01/01/2000 52€

01/01/2004 52€

Residential lease-out

Term: January 01, 2000 – December 31, 2003

Rent 10,000€ annually

Tax: 2% of annual rent

→Registration Tax:

01/01/2000 200€

01/01/2001 200€

01/01/2002 200€

01/01/2003 200€

Additional Functions

Guarantor

If a partner is assigned to the lease-out as a guarantor, then another tax is levied in addition to the registration tax amount.

Choose the Guarantees pushbutton. Additional fields appear in the IRE calculation area.

The system calculates the additional amount using the basic rent, service charges, and contract term. The value is displayed in the Guarantor monthly value field. The system then calculates 2% of this amount ( Guarantor’s tax base ) and adds it to the registration tax amount.

In some cases, rental collateral can be included in the calculation of the registration tax amount. If a cash deposit is part of the lease-out, the system enters this amount in the Bail value field.

Fixture and Fittings

If the value of furnishings is entered in the rental unit being rented, then this amount is added to the amount on which the registration tax is levied.

Choose the Furniture pushbutton. Additional fields appear in the IRE calculation area.

Enter the value of the furnishings in the Furniture value field. In the Furniture amount field, the system calculates 2% of the value annually, and adds the result to the registration tax amount. The final tax amount to be paid appears in the IRE Value field.

Posting

To post all payback amounts that have not been posted, choose the Posting pushbutton to access the IRE one-time posting function.

Notice

Enter the date of notice as the due date (billing date).

Mass Processing

Access report RFVILIRM using transaction se38.

You can use this report to call the time-dependent registration tax data after the first year of the contract.

Posting Reports

Call using One-time lease-out postings

Call using One-time general contract postings