The leasing form of financing has become widely accepted among entrepreneurs. However, not only one type of this form of financing is offered to them, but in addition to financial leasing, his friend – leasing is also offered operatively. Are you sure that your leasing company is financed according to its needs?
Today, a businessman cannot do without a car. If we accept this assumption, then everyone has always been faced with the decision of how to drive the car and how to secure its financing. If we want to sell the car directly, then we have the choice of using our own resources or various forms of credit (most often bank).
In both cases, the purchase contract for the transfer of the car to the buyer is taken over and the transferred property enters the company’s balance sheets. The cost of the car is paid through the depreciation. Passenger cars are depreciated in group 1a (depreciation period in three years).
Leasing financial vs. operational fulfillment of other product philosophy and scope of fulfillment
If we were most likely to define leasing, we would probably use a nominal lease. Both of these types have one common car for the conclusion of leasing contracts of goods owned by the lessor (leasing company) and the lessee (the company introduces the car) for the opportunity to use this property on a regular basis. And so far both products look like toton.
The main difference between the two products is that in the case of financial leasing, the subject of the lease is transferred to the lessee after the expiration of the lease period, while in the case of leasing the operating lease the car is still owned by the lessor. Of course, the possibility is not ruled out that the car will be transferred after the end of the lease to the lessee even in the case of operating leasing, but this eventuality must be preceded by an agreement of both parties. Conversely, in the case of leasing finance, the transfer of assets to the lessee must take place after the end of the installment calendar (if he has repaid all financial obligations from the contracting authority).
The second fundamental difference between the two products is the range of services provided by the lessor (leasing company) to the lessee during the duration of the installment plan. In this respect, substantial leasing is substantially operational. The model relationship between the two subjects looks as follows (for clarity, we take it into the individual steps):
The lessee will find a contract with the leasing company
Leasing company vz purchase, put into operation and before its tenants to uvn
The lessee pays the lessor regularly for a specified period of time (eg two years)
Included in the price are usually the following fulfillment – compulsory insurance and emergency insurance, road tax, assistance service, radio fees, complete service and maintenance of the vehicle, regular service and repairs, liquidation of insurance claims, tire replacement, etc.
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In the case of financial leasing, the majority of services on the part of the lessor are significant. These castles contain the installment of the acquisition price and the accrued VAT, financial service and the accrued VAT, insurance (if there is an installment). I remind you that the subject of the lease must be accidentally connected. In contrast, operating leases must be taken care of by the lessee.
Operating leases are the entrance fee
In terms of ethn and tax issues, the operative leasing pin has several simplifying elements. If the car is used exclusively for business, then it is a tax deductible expense for operating leases and the value added tax included in the tax reduces the total tax liability of the taxpayer for this tax. In addition, the operating charge does not apply to operating leases (unlike finance leases).
In the case of financial leasing, the overall situation is somewhat complicated. In the first place, it is not true that all castles are automatically taxable costs. In order to be able to be included in the cost, the company must meet the following conditions (there are three of them and you will find them in paragraph 24, paragraph 4, of the Income Tax Act):
The term of the lease period must be less than 20% of the determined depreciation period (at least three years). In the case of cars, there must be at least a year of financial leasing.
The condition in the purchase price associated with the condition of immediate redemption at the end of the lease the purchase price of the leased tangible property may not be the residual price calculated from the entry price recorded by the owner, which this item would have in the case of equal depreciation.
Condition included in commercial property (salary only for self-employed persons)
A very unpleasant situation would be possible non-compliance with these conditions. In such a case, the paid payment would not be considered a tax expense, and thus the taxpayer would have to file an additional tax return and correct his mistake. In addition, companies must realize that the finely and paid down payment must be differentiated over time.
As for the issue of value added tax, in the case of operating leasing, it is possible to apply VAT on input and dream of your tax liability. In the case of financial leasing, it is not possible to claim VAT on the purchase price of the car in the case of passenger cars of category M1.
Let’s try to summarize the interesting pros and cons into a twisted table, which can serve as a quick guide for decision-makers over the offers of both products:
|Finann leasing||Operativn leasing|
|Ownership for the duration of the lease||Leasing company||Leasing company|
|Ownership after the day of termination||The car was sung to the Germans, the Daov is odepno||The interest in the ownership of the company’s leases can be repurchased (not the first year)|
|Down payment||Yes (10 percent or more)||Born|
|Gently contains||Spltku from the price of the car, financial service, VAT, event. insurance||Insurance, service assistance, strong taxes, long-term stamps, regular service and repairs, tire replacement, provision of a spare car, etc.|
|Daov recognizability njemnho||Pay attention to the conditions in paragraph 24, paragraph 4||Year|
|DPH||Break down into VAT from the purchase price and VAT from the financial service||Year|
The criteria given in the table are, of course, relatively strict and formal. If we look at both products with an overview, then operating leasing is for those who pay without problems inside the car for a certain period of time and after that they will probably rent another model.
Finann leasing has a different philosophy. The main installment allows the purchase of the price of the car and simplifies the lessee with each installment approximately once the item will be used in his possession.
Do you think that operational leasing has its future or do you use this product only for managerial vehicles? Dark on your nzory.