ACCOUNTING AND TAXATION OF LEASING CONTRACTS

LEGAL FRAMEWORK FOR REGULATING LEASING AND LEASING OPERATIONS

Art. 1309 How to calculate the payment for the rent of agricultural goods, other than land The method of calculating the amount of payment for the lease of agricultural goods, other than land, is established by the Government, depending on the degree of wear and tear of the goods.

When leasing agricultural goods, other than land, the lessee is obliged to calculate their wear and tear and reflect it in his off-balance sheet account.

For  the  purposes  of  this  section,  wear  and tear of agricultural     property means the reduction in the value of agricultural property, other than land, through its long-term use.

Art. 1310 How to pay the rent

The method of payment for the lease of agricultural goods, other than land, is established by agreement of the contracting parties. The payment is paid annually or is accumulated in the lessee’s balance sheet account.

If the rent payment accumulates in the lessee’s balance sheet account, the lessee, with the lessor’s consent, carries out the capital repair, reconstruction or renovation of the leased agricultural assets, other than land, and procures new assets.

Art. 1312 Capital reparation

The lessor is obliged to carry out the capital repair of the leased agricultural goods, other than the land, unless otherwise stipulated in the contract.

Failure by the lessor to comply with the obligation provided for in para. (1) grants the lessee the right to carry out the capital repair on his own account and to pass the expenses incurred on account of the payment for the lease of agricultural goods.