ACCOUNTING AND TAXATION OF LEASING CONTRACTS

LEGAL FRAMEWORK FOR REGULATING LEASING AND LEASING OPERATIONS

According to the provisions of art.1293, the lease of agricultural land concluded for a term of more than 5 years must be noted in the register of real estate. If a tenant concludes lease contracts with several lessors, at the initiative of the local public administration authority, the receipt of applications for notation of the lease in the register of immovable property shall be made by the registrar of the territorial cadastral body on the territory of the locality.

The lease of agricultural land concluded for a term of up to 5 years inclusive shall be registered at the town hall of the locality in whose territorial radius the land is located. The registration of the lease in accordance with this paragraph shall not produce the legal effects of the notation in the register of immovable property.

The lessee, within 3 months from the date of conclusion of the lease contract, ensures the notation of the lease or, as the case may be, ensures the registration of the lease.

The voluntary notation at the territorial cadastral body of the lease concluded for a term of up to 5 years exempts the tenant from the obligation to register it at the town hall.

Art. 1294 provides that the lease concluded for a term of up to and including 5 years shall

be registered in the register of lease contracts kept by the town hall of the locality in whose territorial area the leased land and other agricultural goods are located. If the land and other agricultural goods leased are located on the territory of several localities, the lease shall be registered at the town hall of each of these localities.

According to Article 1300, the payment for the lease of agricultural land is established in monetary units, is made in kind, in money or in kind and in money or in another form, according to the agreement between the contracting parties, and is made within the term and in the place provided in the lease contract.

The payment in kind for the lease of agricultural land is established in a determined quantity of agricultural products or in a determined percentage of the volume of production. The products with which the rent is paid are established by the parties, depending on the specifics of the agricultural activity and the area.

The terms and place of payment in kind for the lease of agricultural land, as well as the quality of the products are established by the parties to the contract, depending on the type of products and the specifics of obtaining them.

The agricultural production released by the lessee on account of the payment for the lease of agricultural land is estimated at prices that do not exceed those in force on the local market for this production at the time of its release, unless otherwise provided in the contract.