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ABC leasingu

Operating lease in tax law

Operating lease pursuant to the tax acts (Personal Income Tax Act and Corporate Income Tax Act)

Conditions:

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.

Tax consequences:

  • 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).