Companies

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).

• The values determined for the local taxes of tax group companies as part of a tax calculation are allocated to the (interim) group parent in order to calculate tax for the consolidated group. The allocated values are displayed under Actual Taxes | TB Transfer for each group member.
• If the Deliver deferred taxes function is activated for members, deferred taxes are forwarded to the tax payer of the group (the “formal approach”). The respective deferred taxes received and transferred are displayed under Deferred Taxes | Summary. 
• The closing of the milestones Current Taxes and Deferred Taxes is only possible for (interim) tax payers of groups if all direct subsidiaries have completed their processing, i.e. the milestone is set to the status Completed or Audited.

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:

• including balancing (Accounting standard: IFRS)
• including balancing (Accounting standard: Commercial Law)

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:

• Without Netting
• Netting (maturity)
• Netting (types of taxes without maturity)

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.

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.

The legal owner is determined from a selection list. The list contains the companies maintained in Income Taxes for the selected period.

When using Income Taxes for the first time, the highest group companies must therefore be created first. These can then be assigned to the subsidiaries as the legal owner.

For the legal form type Partnership:

Entering the civil law quota is not relevant for the purposes of tax calculation. The civil law quota is used exclusively for selected reports.

The quota must be entered as a percentage value (a number without the percent sign). Among other things, this data is used for the graphical presentation of the group structure.

The specification of investments determines the forwarding of the assessment bases of German partnerships to the partners (or shareholders), as well as the selection menu of the partner area SupBal (supplementary tax balance sheet) in the B/S Comparison workspace.

This information is required for the purposes of electronic tax declarations and the exporting of master data to SmartTaxBalance (number of partner from assessment declaration – form sheet FB). This information is only relevant for German partnerships.

The kind of partnership is to be indicated exclusively for German partnerships.

This specification controls the display of the partner (e.g. a limited partner) in the § 15a EStG dialog for purposes related to the tax accounting of losses.

In addition, this information is required for the purposes of electronic assessment declarations (in particular enclosure FB) and exporting master data to Tax Balance.

This information is only relevant for German partnerships.

It must be specified whether the partner subject to the assessment is a natural person, a partnership, or a corporate enterprise.

This information is required for the purposes of electronic assessment declarations (in particular enclosure FB) and exporting master data to Tax Balance.

The investment is part of private assets (enclosure FB).

Activate this check box to ensure consolidation of the created/edited company within the group financial statement. The field can only be activated for a single legal owner. Companies for which the field is not activated are displayed in brackets in the graphical group view.