Operating lease in tax law
Operating lease pursuant to the tax acts (Personal Income Tax Act and Corporate Income Tax Act)
A lease agreement is concluded for a specified period of time equivalent to at least:
- 40% of normative amortization / depreciation period, if the object of lease is a movable or intangible asset subject to amortization / depreciation write-offs;
- 10 years, if the object of lease is real estate subject to depreciation write-offs.
- The sum of fees specified in the lease agreement, reduced by VAT, corresponds to at least the initial value of the object of lease.
- A total lease instalment (principal + interest) represents a deductible cost of the User and at the same time revenue of the Financing Party.
- Amortization / depreciation write-offs are made by the Financing Party.
- The minimum final value for the User = hypothetical net value (initial value reduced by amortization / depreciation write-offs calculated with the use of the degressive method taking into account amortization / depreciation rate of 3).