November 5 2018
Bill to amend corporate income tax adopted by parliament
On 1 November 2018, a Bill to amend the Corporate Income Tax Act (CITA) was adopted by the parliament. With respect to the tax treatment of leasing, the following additional amendments were adopted.
A new article 11a of the CITA provides that:
- income and expenses related to operational lease contracts recorded in the accounts of the lessee will not be recognized for tax purposes;
- rights to use assets under operating lease agreements may not be included in the tax depreciable value of a tax depreciable asset of the lessee; and
- income and expenses relating to operating leases will be recognized for tax purposes if they concern the lease of a right to use assets. In such a case, the income and expenses must be determined in accordance with National Accounting Standard 17 on leases.