Portugal Tax Agency Issues Circular on Tax Accounting Rules for Leased Assets Under IFRS 16

The Portuguese Tax and Customs Authority Aug. 13 issued Circular No. 7, explaining tax accounting rules for leased assets under International Financial Reporting Standards (IFRS) 16, which replaces the International Accounting Standards (IAS) 17. The circular explained: 1) IFRS 16 applies from Jan. 1, 2019, with earlier adoption permitted; 2) the recognition of right-of-use (ROU) assets and ROU depreciation and amortization procedures for lessees; 3) the continued application of the finance and operating lease classifications by lessors; 4) lease and sublease assessment procedures; 5) the application of tax deductions the source (TDS) rules for rental payments to specific lessors for ...