"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.
Join us for an insightful session on the various differences between accounting and tax, including the VAT treatment, of various kinds of leases."
"- Distinguish between the various lease types as defined from the following perspectives:
- Accounting: Defining a lease, operating lease and finance lease
- Income tax: Defining an operating lease
- VAT: Defining an instalment credit agreement, instalment sales agreement and finance lease
- Clarifying the accounting, income tax, deferred tax and VAT treatment of each lease type from the perspective of both the lessee and the lessor
- Additional considerations where VAT is financed or not financed in a lease agreement
- Additional considerations for fixed property and VAT
- Additional considerations for Income Tax for lease recoupments and lease deductions
- Brief overview of sale and leaseback arrangements from an Income Tax perspective
- This session will not be an IFRS technical session, but will however incorporate the accounting entries for the relevant transactions for guidance"
All taxpayers, tax professionals, accountants and auditors seeking more information on this topic.
