Practical Aspects of Accounting and Taxation of Land and Agricultural Machinery Leases

Abstract

Agricultural business is associated with the use of land and specialized resources, which necessitates their involvement in business processes on a lease basis. Lease of land shares and agricultural machinery contributes to increasing the competitiveness and economic stability of agricultural enterprises, which requires high-quality information support for lease relations in the context of making effective management decisions, in particular, the correct reflection of costs in the accounting system and optimization of the tax strategy of the business. The purpose of the article is to update the practical aspects of accounting and taxation of land and agricultural machinery leases in modern business conditions. In the context of a systematic approach, the study used a monographic method to analyze scientific and practical articles and regulations on accounting and taxation of property leases, analysis to detail current regulations in the context of accounting and taxation of leases, synthesis to combine key aspects and applied solutions into a holistic accounting model, a generalization method to systematize practical experience and form conclusions and proposals to improve the efficiency of accounting procedures, a logical method for a consistent presentation of the material, substantiation of conclusions and recommendations, and graphical and tabular methods to visualize the results of the study. The paper analyzes the opinions of scientists and practitioners on the construction of information support for lease relations in terms of their organization, accounting and taxation, emphasizes the need for adaptability of solutions, stability and mutual coordination of accounting and tax processes in the context of modern problems of agrarian business. Documentary support for the lease of land shares and agricultural machinery, methodological approaches to accounting for lease relations taking into account the form of ownership of the lessor and the terms of the contract, the features of taxation and reporting of agricultural enterprises in terms of the use of leased property and payment of rent to owners of land shares and agricultural machinery, focuses on the strategic importance of accounting information as a tool for business sustainability in crisis conditions through rational management of lease relations and optimization of tax calculations. An algorithm for accountants' actions in conditions of full-scale war is proposed, in particular, in the event of loss or damage to leased property because of military actions, which will reduce financial losses of agricultural businesses, increase the chances of compensation for losses from the state, ensure the stability of lease relations, and strengthen the legal position of agricultural enterprises in lease relations. The results of the study will be useful in the practical activities of agricultural enterprises, in particular, for accounting and taxation specialists, management, consultants, as well as for further research in the field of agrarian business management.