As of 2019, rental goods and equipment will no longer represent a simple expense for companies. These will now become part of the assets that must be recorded in their financial statements, and as such, must also generate the payment of taxes.
This is determined by the International Financial Reporting Standards (IFRS) that, progressively, have been adopted in the country since 2010 and, from next year, through its regulation # 16, will regulate the registration of contracts lease. This change, explains Jhon Hidalgo, director of Audit Corporate, will be applied for those contracts that exceed $ 5,000 and whose rent exceeds the period of the year. In this way, if a company has rented a warehouse for 3 years, that good, even if it does not belong to it, will become one more asset in its financial statements. “If for that warehouse he paid $ 20,000 a year that multiplied by three years is $ 720,000. Previously that was recorded as an expense, but the current norm says that now we do not have to wait for that expense to incur, but at the time of presenting my financial statements, I must recognize everything that I will pay in the future “.
But an increase in assets, Hidalgo explains, will inevitably result in a higher advance payment of Income Tax (its calculation is measured according to assets) and other taxes such as the contribution in the Superintendence of Companies and the payment of municipal patents.
The change is expected to affect distribution companies, manufacturers and other companies that, due to their business, depend on the rental of movable and immovable property. In the market, companies such as Difare have already begun to evaluate the standard. In this case, says Juan López, Audit and Tax Manager of the firm, the impact is considerable, since 50% of the sales points of the group’s pharmacy chains are leased. “And not a year, but at a time that is between 4 and 5 years” because, he says, it is necessary to seek a return on investment (in image and furniture) that the company must do within these spaces. So, “if we add up the number of points of sale for the lease, it is a very important impact,” he said.
The same evaluation is carried out at Olamnet, a firm that depends on the rental of warehouses to clean, dry, and process the cocoa that it exports. The idea, says Walter Jara, financial manager of the company, is to try to find strategies that allow them to comply with the standard and reduce possible effects. The concern is not only focused on a higher tax payment, but also on the effect that the inclusion of these future liabilities in the states could have. “Having greater obligations (expenses) this could complicate the financial situation of a company, at the time you have to acquire indebtedness before financial institutions. Your valuation deteriorates. “
The norm and its benefits
Although the change worries some companies, the application of this rule also has its positive side: not only does it help third parties to know the real economic situation of a company, but to reduce its impact is possible.
This new provision would allow investors and lenders to have a better reference of the “robustness” of a company, when it comes to providing resources. It would also allow potential buyers to access a more real financial status. Generally, says Hidalgo, principal of Audit Corporate, when a company is bought, future obligations are unknown and this leads to heavy fines.
The expert says that companies are still in time to do a preliminary study to consider whether their contracts should be subject to the standard. If there is an impact, he assures, strategies should be revised to cushion it, one of which is to correct the times in which these contracts apply. On the other hand, you should look for the way to recover the tax payment, in time. (I)