Lease increasingly becomes an important instrument of financing and is most common in personal cars, ships and business space. So, this paper will analyze the accounting and tax treatment of leases from the aspect of the lessee and the lessor. The lessor shall conclude a rental contract with the lessee and transfer the right of certain assets over a specified period to a certain fee. Therefore, the recipient of the rental is obliged to pay the fee throughout the entire duration of the contract. Depending on the contractual terms, lease may have the features of the most common rent (operational lease) or purchase agreement (financial lease). Operating lease has the characteristics of a business lease because it is the use of the leased asset without the intention of acquiring ownership with the option to replace it by a new asset upon expiration of the agreement. Financial lease is intended for those who want to acquire ownership of the leased asset upon expiry of the lease. Since January 2019. IAS 17 Loans was replaced by the new standard IFRS 16 Leases that made significant changes in the rental record by the lessee. The lessee records all leases according to a unique accounting model. Operational leases that are presented by the IAS 17 off-balance sheet, are now reflected as well as financial leases. Accordingly by the IFRS, lessee has to present all leases in their business books as assets and liability, except for the short-term lease and leases of low-value assets. The existing model from the IAS 17 is largely retained in the form of recording leases from lessors aspect. The new standard provides better information and real view of the company balance sheet and profit and loss account. The goals of the paper are to defines the lease, show the basic characteristics and differences arising from introducing a new standard, present the principles of recognition, measurement, presentation and publication from the aspect of the lessee and the lessor and also present the tax treatment of the lease.