Available Course

Leases – Taxation vs Accounting

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Duration: 2
CPD Hours: Attendance at this seminar will secure 2 hour/s verifiable CPD points including other professional bodies (SAICA, SAIBA, ACCA, IACSA, IRBA & etc)
Course Facilitator: Corlia
T:  011 886 1395
E:  gillian@probetatraining.co.za

It is common practice for entities to enter into lease agreements as an alternative to purchasing cash, as it alleviates the pressure on immediate financing. However, when it comes to the financial and taxation reporting of these assets and liabilities, it may feel as though the transaction might have been more of a burden than initially bargained for. This course aims to clarify the tax and VAT treatment of the various leasing transactions that taxpayers may encounter.

This session will cover the following: • A comparison between the accounting and income tax treatment of leases (including income tax deductions available for lease payments, lease premiums and leasehold improvements) • The VAT treatment of leases • The deferred tax implications of leases • The above matters are discussed for each of the three kinds of leases (operating and finance leases, and instalment sales agreements), and are discussed from the perspective of each party to the transaction (lessor/seller and lessee/buyer).

All taxpayers that are party to leasing transactions, whether it is the lessee or lessor, as well as tax professionals charged with managing their tax affairs. Auditors might also benefit from this course as it will enable them to understand the tax working of leases that they might need to consider during an audit.