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    Chapter 21 (Group 2)

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    Josua Pranata
    The document discusses accounting for lease transactions under Indonesian accounting standards PSAK 30. It defines finance and operating leases, lessees and lessors. It provides details on classifying leases, accounting entries for lessors and lessees, and Indonesian tax treatment of leases.

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    © All Rights Reserved
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    Chapter 21 (Group 2)

    Uploaded by

    Josua Pranata
    28 views20 pages
    The document discusses accounting for lease transactions under Indonesian accounting standards PSAK 30. It defines finance and operating leases, lessees and lessors. It provides details on classifying leases, accounting entries for lessors and lessees, and Indonesian tax treatment of leases.

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    The document discusses accounting for lease transactions under Indonesian accounting standards PSAK 30. It defines finance and operating leases, lessees and lessors. It provides details on classifying leases, accounting entries for lessors and lessees, and Indonesian tax treatment of leases.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    28 views20 pages

    Chapter 21 (Group 2)

    Uploaded by

    Josua Pranata
    The document discusses accounting for lease transactions under Indonesian accounting standards PSAK 30. It defines finance and operating leases, lessees and lessors. It provides details on classifying leases, accounting entries for lessors and lessees, and Indonesian tax treatment of leases.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    ACCOUNTING FOR

    LEASE
    TRANSACTION
    Josua Pranata (008201600059)
    Kevin Kenn Tangkas (008201600013)
    Nathania Neysa (008201500022)
    Silvia Sely Grace Gea (008201600062)
    Ding Zisheng (008201600082)
    ■ Lease is any company financing activity in the form of providing capital goods to be
    used by a company for a period of time, accompanied by an option for the company
    to buy the capital goods in question or extend the lease term based on the value the
    remaining agreed upon.
    ■ a leasing company is a business entity that carries out financing activities in the
    form of providing capital goods, both financial leases and operating leases to be
    used by tenants for a certain period of time based on regular payments.
    Finance Lease
    • is a leasing activity where the tenant at the end of the contract period has the option
    right to buy the object of the lease based on the agreed upon residual value.

    Operating Lease
    • is a leasing activity where the tenant does not have the option right to buy the object of
    the lease

    Lessee
    • is a company or individual that uses capital goods with financing from the leasing company
    PSAK 30 (revised 2007) is applied in accounting for all types of leases,
    except:

    ■ Leases in the framework of exploration or mining of mineral, oil,


    natural gas and other non-renewable resources; and
    ■ License agreements for things such as films, video recordings, stage
    works, manuscripts (written works), patents and copyrights.
    Classification of Leases
    • A lease that transfers substantially all the
    Finance risks and benefits associated with
    ownership of an asset. Property rights can
    Lease eventually be transferred, can also not be
    transferred.

    • a way of not substantially transferring all


    Operating risks and benefits associated with asset
    ownership.
    Lease
    The standpoint of the Lessor:
    ■ Sales-type leases. Leases that give rise to manufacturer's or dealer's
    profit (or loss) to the lessor.
    ■ Direct financing leases. Leases other than leveraged leases that do not give
    rise to manufacturer's or dealer's profit (or loss) to the lessor but that
    meet one or more of the criteria in paragraph 7 and both of the criteria in
    paragraph 8.
    ■ Leveraged leases. Leases that meet the criteria of paragraph 42.

    The standpoint of the lessee:


     Capital leases. Leases that meet one or more of the criteria in paragraph 7.
     Operating leases. All other leases.
    rental accounting practices

    ■ 1 payment in advance
    ■ 2 payment in arrears
    Financial lease

    ■ 1 for the lessor


    ■ 2 for the lessee
    ■ 3 for lease payments
    The lease payment calculation

    1. Payment in advance
    2. Payment in arrears
    The Income Tax Treatment of Lease

    In the Ministry of Financial Decision number 1169/KMK.01/1991 define lease criteria,


    financial and operating lease. The criteria are:
    1) Financial lease, if
    1) The total amount of lease payment for the first lease period plus the residual
    value of the capital goods, has to be able to cover the acquisition cost and
    lessor’s profit
    2) The minimum lease period
    1) 2 years for capital goods type I
    2) 3 years for capital goods type II and III
    3) 7 years for type of building
    3) The contract contains provision about option for lessee
    CONT.

    2) Operating Lease, if
    1) The total amount of lease payment in the first period cannot cover the
    acquisition cost of the capital goods leased plus the gain calculated by the
    lessor
    2) The contract does not contain the provision about the option right for lessee
    The stipulations of the taxation problem which is
    related to the income tax for lessor and lessee are as
    ■
    follow:
    Financial lease
    – For lessor
    ■ The taxable income is part of the lease payment which are total of the payment deducted by
    the principles. In the matter of sewa sindikasi (some companies in the same time make
    transaction with one lessee), the compensation for each member is calculated proportionally
    based on the contract between the member of the lease
    ■ Lessor cannot make depreciation for the capital goods leased
    ■ Lessor cannot make allowance of doubtful account as high as 2,5% and the average of
    beginning balance and ending balance of lease receivable which is the total amount of lease
    payment covering the principle and interest. The afda made can be deducted from the gross
    income in the related tax period
    ■ The amount of income tax 25 installment for every month is the amount of income tax as the
    result of the income tax law application towards the PKP based on the last quarterly report
    combined into yearly report divided by 12 months. If the lessor is also performing operating
    lease, then the quarterly report mentioned is the combined quarterly report
    CONT.

    ■ For lessee
    – Lessee can not make depreciation of the capital goods leased, until lessee use
    the option to buy the goods, the depreciation will be made from the taxation
    period the option used. Specially for the capital goods in the form of land is not
    allowed to make depreciation
    – The base of the depreciation used after lessee uses the option right to buy the
    capital goods is the residual value of the goods
    – The payment paid or owed, except expenses of the land, is the deductible cost
    from the gross income as long as the transaction can be classified as financial
    lease
    CONT.

    ■ For the lease payment paid or owed by lessee, deduction of income tax 23 cannot
    be made. The income tax treatment for point a, b, and c is valid for the lease which
    contract signed after the application of the Ministry of Financial Decision mentioned
    Rent without option rights
    1. For the lessor
    a) all lease payments received or obtained are objects of PPh
    b) Imposition of depreciation costs for leased capital goods begins in the tax year of
    the capital goods concerned. Especially for capital goods in the form of land, it is
    not permitted to be leased
    c) The lessor is not permitted to form a reserve for the elimination of doubtful
    accounts

    2. For the lessee


    a) Lessee may not depreciate capital goods leased
    b) Payment of rent paid or payable is a fee that can be deducted from gross income
    Rent without option rights
    3. For lease payments paid or payable by the lessee must be deducted from Article 23 of
    Income Tax
    The basis for calculating the income tax article 23 is gross rental receipts, with the
    following conditions
    a) A leasing company that is solely engaged in rental business without option rights, the
    calculation of Income Tax article 25 as referred to in article 1169 of the Minister of
    Finance Decree No. 19 / KMK.04 / 1991 does not apply
    b) The director general of tax makes corrections if the lease period is shorter than the
    minimum period. In the case of a financial lease agreement stating a shorter period of
    time or the implementation ends within a shorter period of time than the minimum
    period indicated, the tax treatment is equated with the operating lease
    c) For capital goods leased, lessors and lessees are obliged to make separate records and
    assets that are not leased
    d) the lessee is prohibited from renting back capital goods that are leased to other parties
    Submission of services in the rental
    category
    Required journal entries need to pay attention to whether the lease has option rights or not.

    Without option rights


    PT Asuarent has been confirmed as PKP renting heavy equipment for Rp. 70,000,000 a
    month with the SGU pattern without option rights to PT Pembangunan which has also been
    confirmed as PKP. The rental calculation is carried out as follows

    Rental price per month Rp 70.000.000


    VAT (10% X Rp 70.000.0000) Rp 7.000.000
    Rp 77.000.000
    Article 23 of Income Tax for rent
    (2% X Rp 70.000.000) Rp 1.400.000
    Total payment Rp 75.600.000
    Submission of services in the
    rental category
    Journal Verse made for the transaction
    A. The lessor

    Date Account Debit (Rp) Credit(Rp)


    Cash and bank 75.600.000
    Article 23 of Income Tax is prepaid 1.400.000
    Output VAT 7.000.000
    Rental income 70.000.000
    Submission of services in the
    rental category
    B. The Lease

    Date Account Debit (Rp) Credit(Rp)


    Rental expenses 70.000.000
    VAT input 7.000.000
    Article 23 income tax payable 1.400.000
    Cash and bank 75.600.000

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