| What is leasing? |
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Leasing, or financial lease, is a profitable and convenient financial instrument combining the advantages of lease, bank credit and acquisition of an automobile under a purchase-and-sale contract by installments. Leasing makes the purchase of motor vehicles or equipment more affordable, with funds saved both by companies and businessmen. |
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| Leasing advantages |
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By acquiring property for leasing you will reduce the taxable base of the profit tax by attributing leasing payments to the prime cost and by applying the mechanism of accelerated depreciation. The company shall not pay the property tax either, for the property is registered on the leasing company’s balance. |
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| Leasing or Credit |
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As distinct from credit, leasing makes it possible to use current tax exemptions, i.e., to reduce the amount of the profit tax by attributing the leasing payments to the prime cost in full volume, to use accelerated depreciation and save funds on the property tax.
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| Leasing or Buying |
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As distinct from direct purchase, leasing does not require “freezing” of large monetary sums that may be used for further business development. |
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