Due to lack of consistent court decisions and interpretations, many issues connected with the taxation of leasing activities are uncertain, even though the current tax regulations relating to leasing activities came into force on 1 October 2001. Furthermore, challenges arise for leasing entities and their advisors, in view of the discrepancies between the tax regulations and the Accounting Law.
The Leasing Group has gained broad experience in practical methods for effective tax risk management as regards leasing contracts.
During our long term practice, due to participation in many projects involving the entities from this sector, ongoing monitoring of amendments to the laws and their current interpretations, we have identified and advised in, among others, the following issues:
- recognition of costs and revenues in early termination of leasing contracts;
- tax settlement of contracts denominated in foreign currencies;
- extension or termination of a leasing contract versus the level of leasing instalments and the sale price;
- determination of the sale price of items subject to operating and finance lease contracts in transactions for the benefit of the lessor or a third party;
- transfer of leasing contracts versus acquired rights in the context of VAT and income taxes.
We provide our assistance to both the lessors and lessees and offer complex servicing of leasing contracts. In particular, our services cover:
- leasing of real estate (shopping malls, supermarkets, office buildings);
- leasing and managing of car fleets;
- leasing of commuter plane fleets;
- leasing of technological lines;
- leasing of agricultural machines and equipment;
- consumer (private) leasing;
- securitization and factoring of leasing receivables.
