County Tax
Definition
County Tax in Italy – “Imposta Communale Sugli Immobili (ICI)”
This is a type of tax in Italy that is roughly equivalent to property tax in Germany. The tax has to be paid by the owner of land or buildings in two semi-annual installments (June 30 and December 20).
You store the master data for county tax on the rental unit or property. This means that each building has to contain at least one rental unit. If a rental unit is linked to a property, then you only need to enter the data on one of the two.
The owner of the property or building has to calculate the tax amount him or herself, fill out the payment form and make the payment at the post office. The form is available in all regions in Italy.
The owner also has to complete a form containing details on what property/buildings are owned, and submit this form to the land registry office.
Prerequisites
Make the necessary settings in Customizing:
SAP Customizing Implementation Guide
Real Estate
Country Specifics
Italy
County Tax (ICI).
⇒
Maintain Land Register Categories
⇒
Maintain Coefficient for Building Category ‘D’
⇒
Maintain City Tax Records
⇒
Maintain Classes
⇒
Maintain Usage Group Categories
⇒
Maintain Setting for Installment Payment
Make sure you choose Italian tenancy law on the business entity.
Use
The tax amount is calculated as:
A percentage of the property value or building value. This is determined by the survey office, dependent on the usage category of the property (such as lot) or the building (such as residential building or commercially-used building).
Note: Tax deductions are possible for residential buildings.
Procedure
Choose
Accounting
Real Estate Management
Master Data
Objects
Rental Unit
Create
Choose
ICI master data
. The
ICI master data
screen appears
.
Define the time period and the percentage of ownership.
Maintain Coefficients for Building Category ‘D’
In the
Calculation
screen area, you enter the annual coefficients for new valuation of buildings in category 'D'.
Definition of Building Category ‘D’
The land registry does not communicate a base value for calculating county tax for some buildings (and therefore also for the rental units in them). For residential buildings or commercially-used buildings, the owner has to use the value of a similar rental unit for the calculation, until an official base value is publicized.
However, different constraints apply for buildings in category 'D'. These are buildings such as factories, warehouses, and so on, that are owned by a company and do not have an official base value. For these buildings, you calculate the county tax using prior overall costs for the building in the last 10 years as the base value. These costs include the purchase price, construction costs, costs of renovation, and so on.
You multiply this base value annually by a coefficient that is issued by the government (offsetting inflation). The current year has a coefficient of 1; prior years have somewhat higher coefficients (for example, 1.22 for the year 1995, 1.5 for the year 1997).The result is then the base value for calculating county tax. You make this calculation in the
ICI master data
in the master data of the rental unit.
Example
Office
Purchase date: March 10
Base amount: 6,000 €
Calculation coefficient: 50
Tax: 0.05%
⇒ Tax amount per month: 6,000€ * 50 * 5 / 10,000 / 12 = 12.50€
⇒ Payment in June: 12.50€ * 4 = 50€
⇒ Payment in December: 12.50€ * 10 = 50€