Digital Property Tax Return for Businesses
As part of the property tax reform, the existing uniform value method for assessing property tax was replaced by a new system incorporating various valuation models. A revaluation every seven years (next assessment date: January 1, 2029) of millions of economic units in Germany presents an opportunity to rethink the entire assessment process and optimize it from a technological perspective.
Digital & automated as foundation
The key to efficiently delivering property tax services is a clear focus on digital workflows. The end-to-end process design begins with the initial valuation of a property portfolio in accordance with the new regulations and encompasses all steps, from filing the tax return and reviewing the assessment notice to automated annual payment preparation within a structured process.
End-to-end digital automation of process steps creates the conditions for enhanced tax compliance with process documentation. End-to-end digital support for processes also enables reliable and transparent collaboration among all process participants, including communication with tax authorities.
Data management and intelligent automation
Experience shows that a major driver of effort, costs, and complexity lies in the areas of data preparation and data analysis. The collection and preparation of data for processing—especially in bulk—place high demands on its quality and nature. Therefore, the automated consolidation of data via interfaces from upstream property management systems, such as SAP RE-FX or similar solutions, is ultimately essential for successful automation.
Simulation and data analytics for improved predictability
The ability to reliably plan for liquidity needs becomes increasingly important, especially during times of economic uncertainty. In the context of property tax reform, it is difficult to make a reliable calculation of the payments due from the outset, largely because the specific legal details are often still unclear. Changes within a large real estate portfolio also lead to shifts in the property tax burden and must be taken into account accordingly. As part of a digitally supported property tax service, a fully transparent and reliable simulation of the expected property tax burden is essential.
In addition to the predictability of future payments, a digital solution also enables the planning of all process steps. All parties involved in the process are aware of the current status of the tax assessment procedure at all times, especially for large real estate portfolios, this ensures that there is always an up-to-date overview of the status and deadlines to be observed. Ambiguities regarding responsibilities or missed appeal deadlines after receiving a notice can thus be effectively avoided.
Comprehensive management of property tax process
We handle the entire property tax process for our clients: from the initial assessment to automated annual payment preparation, we manage every single step. We rely on a high degree of automation, including the integration of client systems (e.g., SAP RE-FX). The preparation of the property tax return and the review of notices issued by tax authorities and municipalities are then additionally handled by tax experts. Overall, our clients benefit from a complete end-to-end process that remains transparent at every stage.
