Companies

The ID uniquely identifies a company. Up to 20 characters can be used (letters and numbers). The ID can only be assigned once and cannot be changed afterwards (applies across periods). The Unit-ID should match other relevant accounting systems (e.g. SAP) to ensure the functionality of any potential interfaces.

The name of the company should include the legal form. This is required when submitting tax declarations with Income Taxes.

Entering a short name is optional. Keeping things consistent with other relevant accounting systems is also advisable here. The use of short names (e.g. SAP company abbreviations) can be useful for evaluation purposes or reports.

The legal form can be selected from a list.

The tax calculation dialogs displayed in the Company function area are, in some cases, dependent on the selected legal form. For example, dialogs for determining tax bases are displayed only for partnerships.

Additional company code IDs can be listed here if they are relevant for importing transaction data.

For “Country (Nation)”, select the country in which the company is headquartered or its management is based. Data sets from the master data dialog Countries are available for selection. The tax rates and exchange rates of the selected country are used for tax calculation and to convert the currencies of reports into the reporting currency of the company in question.

This field indicates the materiality of the company and can, for example, affect the scope of questions in Tax Questionnaire or the degree of automation when performing bulk imports for tax calculation.

Materiality is also factored into the configuration of the workflow bot for single companies.

A tax number is required for German companies if tax declarations are also to be sent electronically with Income Taxes.

The unified federal schema consists of:

FFFF: four-digit tax office number

0: 0 (by definition)

BBB: three-digit district number (NRW: four digits)

UUUU: four-digit distinction number (NRW: three digits)

P: single check digit

Example: FFFF0BBBUUUUP - 9198058870707

The specification of a local tax office is required for German companies if tax declarations are to be sent electronically with TCR.

The tax authority responsible is automatically determined based on the tax number (the first four digits).

The tax office numbers (F)FF are extended to four digits for the Elster tax number format.

A business tax ID number uniquely identifies your company with tax authorities and other government agencies. It facilitates communication with the authorities and can help simplify and automate tax processes in the future. Business tax ID numbers are assigned by Germany's Federal Central Tax Office.

A tax number from the Federal Central Tax Office (BZSt) is required for tax declarations and the reporting of withholding tax.

This entry is optional and serves as an extension of possible filter options within the Reports and Excel views. For example, the view in the Company workspace can also be sorted by business area. This attribute should not be confused with reporting dimensions.

In addition, the information is used in tax declarations.

Here, a distinction is made between companies that are coded to the country Germany and companies that are coded to foreign countries.

This value is used solely for the calculation of current taxes and does not apply to the calculation of deferred taxes.

Germany:

In this field, the local tax rate (e.g. 250%, 400%) is entered, which, together with the state tax rate (this is entered in the Countries area), leads to the effective tax rate.

Alternatively, in the Company function area within the Basis data workspace, a different local tax rate can also be specified. By default, the tax rate from the master data is used and applied for the calculation of local tax (group tax relief).

Outside of Germany:

For foreign companies, the local income tax rate must be entered.

This value is used as the proposed value for the second foreign income tax (local tax). To account for local tax rates that vary by region, a different tax rate can also be specified under Current Taxes | Local Tax (Gewerbesteuer).

In principle, for the calculation of profit tax expenses at companies in foreign countries, the option Local tax column in Toolbox must be activated for the respective company in the Company workspace.

Here, you can enter further information about the company in a free text field.

This field is also displayed under Company | Basis data so that the notes are directly available to the user.

This field is for entering further information that should only be accessible to authorized users in the Master Data functional area.

This feature stores the current tax charge structure in the master data.

If a company is defined as a member or intermediate parent, the tax payer of the group must be specified in this row.

The selection list contains companies for which the type of tax payer has been set as Tax payer of group or Interm. parent. For a tax payer of a group or a standalone company, the entry (---) should be selected.

If this function is activated, no neutralization of expense/income arising from the reversal or creation of balancing items as defined in § 14, para. 4 KStG and considered in the earnings determination will be made on the part of the tax payer of the group. This is because the tax payer of the group does not take the change in the balancing item into account in the correction (pursuant to § 60, para. 2(1) EStDV) to adjust the local balance to the tax balance. By default, this check box is not activated (recommended).

Description

The characteristic Tax payer of group(or Interm. parent– ZOT) has the following effects (among others):

This check box controls whether the company is a (sub-)group in which the values of the dependent single companies (and, if applicable, further sub-groups) are aggregated. The determined values can be extended by consolidation measures.

Additionally, the company also has access to the (Sub-)Group functional area. In this area, the work progress of the dependent or subordinate companies can be monitored based on the milestones. The aggregation of company data for the purposes of TRR and other notes is also performed in this area. The characteristic (Sub-)Group is also a selection criterion for reports.

When you activate this check box, two more options will be displayed:

By default, the setting (---) should be chosen here. In order for the partial workspace Local GAAP/Tax Balance to be available at the company level, the balance type Local GAAP must be selected for German companies. This master data characteristic is not relevant for foreign companies (the setting has no impact).

The dialog Local GAAP/Tax Balance can be used if the tax balance surplus/deficit is to be determined in a balance sheet structure that deviates from the regular folder B/S Comparison. The use of this functionality requires separate maintenance of the local GAAP balance sheet structure within the master data.

Selection of the calculation of tax assessments (current taxes) for the calculation of tax in the current period (not late adjustments).

This option applies to both German and foreign companies. The function does not refer to deferred taxes (for this, the Deliver deferred taxes function is available). By default, tax allocation calculation is deactivated.

Tax allocation calculation must be considered in connection with the income tax group. Tax assessments are only applicable in these cases. Therefore, the following comments must be observed:

This attribute should be selected if the requirements for an outgoing business segment are met (e.g. in accordance with IFRS 5). This field does not affect calculations in Income Taxes, but it can be used as a selection criterion for reporting purposes.

This attribute controls whether members deliver deferred taxes to the tax payer of the group (the “formal approach”). Ensure that the company is assigned a tax payer of the group or an intermediate parent. The transfer and receipt of deferred taxes are displayed under Summary.

Partnership:

In addition, the function also serves to transfer deferred taxes from a partnership to the partners. If the attribute is set for a partnership, the portion of deferred taxes attributable to corporate income tax is passed on proportionally to the partners.

In IFRS periods, the following options for the offsetting of deferred taxes are available:

According to local GAAP, companies have the option to offset for the purposes of deferred taxes.

If the check box is activated, the option to offset under commercial law is applied so that deferred taxes are netted in the Summary workspace. In addition, the exercise of the option is displayed.

Description

Data in B/S Comparison can be specified both automatically (via interface) and manually.

If this check box is activated, the balance sheet comparison can be edited manually. This applies to both the data input and any possible reclassifications of automatically imported balance sheet values. By default, the option is activated, allowing you to edit B/S comparisons.

Here, foreign companies have the option to hide the columns for local GAAP balance sheets in the B/S Comparison workspace. This is useful when the local GAAP balance sheet is always identical to the IFRS balance sheet for the company in question.

This drop-down list is available exclusively to foreign companies. This option also refers to the B/S Comparison workspace and enables the display of an additional table sheet.

This is appropriate for companies that, deviating from the average tax rate, must recognize deferred taxes based on an additional assessment base.

This function is only relevant for German partnerships. The attribute makes it possible to map the tax calculation of a partnership transparently for the partner (shareholder) in question. All local tax additions and deductions are allocated directly to the partner. Calculation of the interest capping rule is also not active. Interest and depreciation are reported solely to the partner.

For non-affected companies, select Standard.

For the partner, an additional column appears in the GewSt1A showing the local tax modifications of the subordinate asset/property management company or trust company as an addition to their own value .

This function is only relevant for foreign companies.

Activate it to display a column for local tax (or local income tax) in the Actual Taxes workspace along with the calculation of corporate income tax.

The use of this function is appropriate when the two profit tax expenses use a different assessment basis. Using the new column Local tax, the tax base can be developed starting from profit before tax in accordance with local GAAP and evaluated using the local tax rate stored in the master data.

Starting from the 2016 assessment period, it is possible for corporations with limited tax liability to submit a tax declaration.

If a company changes its functional FX code, this can be selected with this check box. The company will then be treated as a new company without prior period values.

This check box enables use in the Tax liabilities workspace.

This option is only relevant for German companies for purposes related to calculation of the interest capping rule.

This option is only relevant for German companies. If it is activated, the exception clause (or “escape clause”) found in § 4h, para. 2(1)(c) of the EStG will be taken into account when determining non-deductible interest expenses in the Company functional area under Attachment A.

This option only applies to periods for which commercial law has been selected as the accounting standard. According to § 274 of the local GAAP, there is an option to capitalize for excess deferred tax assets. The check box is used to control whether the respective company exercises the option to capitalize in such a way that deferred tax assets are recognized (when the check box is activated). If the option is activated, an active surplus is displayed in the Summary workspace and in Report DT.

The exercise of commercial law options is displayed in local GAAP periods in the upper area under Summary and Report DT.

Application parameter – Tax calculation (Closing v3) area:

Application parameter – Income tax return (Closing v3) and Application parameter (commercial law) areas: