Tax treatment of operating leases accounted for under IFRS 16

Jan 07, 2019

Revenue’s tax and duty manual on leasing now includes guidance on the tax treatment of operating leases accounted for under IFRS 16 (previously IAS 17).

The guidance has been updated to include the tax treatment of lessors, who apply international accounting standards when accounting for operating leases from 1 January 2019 under IFRS 16. The guidance also now includes guidance previously published under “Further guidance on IFRS issues”.

IFRS 16 was issued in January 2016 and applies to taxpayers that prepare financial statements under IFRS for accounting periods beginning on or after 1 January 2019.