Tax and Accounting Aspects of Leasing in Brazil after the Issuance of IFRS 16 and CPC 06 (R2)

Abstract

The purpose of this paper is to investigate the tax and accounting aspects of leasing in Brazil, especially after the convergence of new international accounting standards. In order to do so, the article addresses the tax effects of leasing laid down in Law 6.099/74 and the requirements for the leasing to be taxed under this same law without being considered as installment sale. Having made this analysis, we will examine the accounting treatment of leasing with the edition of IFRS 16 and CPC 06 (R2) in Brazil, as well as the neutralization of the tax effects of these accounting standards through Normative Instruction RFB 1.889/2019. Finally, an analysis is made of the differences between the legal-tax and accounting interpretations of leasing, as well as the hypothesis that tax law could use an economic interpretation of the fact, as does accounting science.