ACCOUNTING AND TAXATION OF LEASING CONTRACTS

LEGAL FRAMEWORK FOR REGULATING LEASING AND LEASING OPERATIONS

A leasing contract is an agreement by which one party assigns to the other the right to use the property for a certain time in exchange for consideration.

In the Civil Code of the Republic of Moldova No.1107 of 06.06.2002,

Chapter VIII Location

Chapter IX – Lease

Chapter X – Leasing

Article 1251 mentions that through the lease agreement, one party (lessor) undertakes to give to the other party (lessee) an individually determined property for temporary use or for temporary use and possession, and the latter undertakes to pay rent.

Art. 1252 provides that the lease agreement of an immovable property must be drawn up in writing. The lease contract, according to art.1253, cannot be concluded for a term longer than 99 years.

According to the provisions of art.1274, the lessor is obliged to carry out the capital repair of the rented property unless the law or the contract provides otherwise.

The lessor may charge the lessee with the costs of the capital repair to the extent that the repair is necessary to repair the damage for which the lessee is liable according to art. 1269.

In the case of a lease without a term, either party has the right to terminate the lease with a notice of 3 months for real estate and one month for movable property (art.1281).