October 30 2018

Bill to amend corporate income tax submitted to parliament

Source: IBFD Tax Research Platform News

On 24 October 2018, a proposal to amend the Corporate Income Tax Act was submitted to the parliament.

The main proposed change concerns the tax treatment of income/expenses of a lessee under operating lease agreements to which the rules of IFRS 16 Leases will be applicable from 1 January 2019.

It is proposed that such income/expenses are not recognized for corporate income tax purposes and instead, the income/expenses determined as per the National Accounting Standard 17 Leases applied to these agreements should be recognized for corporate income tax purposes.

In addition, a right to use assets in relation to operating lease agreements under IFRS 16 Leases will not be recognized as tax depreciable assets of the lessee.

As a next step, the above proposal will be voted on by the parliament. Further developments will be reported when they occur.