ACCOUNTING AND TAXATION OF LEASING CONTRACTS

LEGAL FRAMEWORK FOR REGULATING LEASING AND LEASING OPERATIONS

Art. 1285. The fate of the improvements of the leased property

1. At the expiry of the term or upon termination of the lease, the lessee has the right to separate the improvements, made with the lessor’s permission, which can be separated without damaging the property or to demand compensation for their value by the lessor unless otherwise provided by law or
2. The lessee has the right to separate improvements made without the lessor’s permission if they can be separated without damaging the property and if the lessor refuses to compensate for their If improvements made without the lessor’s permission cannot be separated without damaging the property, they become the property of the lessor.
3. At the  request of the lessor, the constructions not authorized by him are to be demolished by the lessee or on his behalf.

By the lease agreement (art.1288), one party (lessor) undertakes to give to the other party (lessee) an agricultural land and/or other agricultural goods in possession and use for a fixed period, and the latter undertakes to make the lease payment.

(For the purposes of this chapter, agricultural property means fixed assets (land for agricultural use, including within the built-up area of localities, and of the reserve fund, machinery, machinery and installations intended for agricultural works, constructions, including hydrotechnical constructions, platforms and storage spaces intended for the preservation of agricultural production, with the land related to them, animals used in the agricultural process) and, as the case may be, circulating funds.

The term of the lease, according to the provisions of art.1291, is established by the contracting parties, but will not be less than 1 year and more than 30 years. When leasing agricultural land for the purpose of planting multiannual plantations, the lease term will be at least 25 years, unless another term is provided in the contract.