It is very difficult to develop a business without owning or operating a car. Over time, you either have to purchase a vehicle or rent it. It's no secret that entrepreneurs, especially at the initial stage of their activities, experience an acute shortage of working capital. Not always enough financial resources and to purchase the necessary equipment. Given these circumstances, leasing operations can provide very substantial support to any enterprise. If we talk about the mechanism that lies behind this definition, then leasing can be called a long-term lease.
First of all, it should be noted that leasing operations are performed not only with vehicles, but with equipment, and with real estate. In this procedure, at least two parties are involved - the lessor and the lessee. In recent years, commercial banks have started leasing. The insurance companies are compulsorily involved in the process. Accounting for leasing transactions is carried out by each party independently. The lessee or the person who receives the vehicle for rent does not register it. At the same time, property tax is not paid, and rental costs are counted as expenses.
Already this fact clearly demonstrates that it is advantageous for an entrepreneur to take a car for leasing. If he had acquired it, then, according to the current rules, he would immediately pay a property tax. While leasing operations allow you to have transport available and pay for using gradually. In its form, the payment for leasing is no different from the rent payment. To more fully represent the whole mechanism, I must say two words about the leasing company. Most often it is a subsidiary of a commercial bank or established by a group of banks. Its main task is to find customers and work with them.
When a client appears who wants to buy a car, leasing operations begin. The first thing a leasing company does is get a loan from a bank. With this money, the vehicle chosen by the client is purchased. Of course, the car must be registered with the State Traffic Safety Inspectorate. Here it is important to note that in the column "owner" of the vehicle's passport a leasing company is recorded. Once again, attention should be paid to the fact that the car belongs to the lessor. It sends it to the client for use. The lessee uses the car and pays the leasing company for it monthly.
The value of these payments is calculated in advance and is reflected in the contract. In this regard, it should be said that the taxation of leasing transactions is carried out within the existing accounting system. The maximum tax burden is borne by the leasing company. As for the customer, then it is profitable for him to buy a car, as they say, from all sides. The property tax does not pay, because the car is on the balance sheet of the leasing company. Regular leasing payments are expensed, and thereby reduce the taxable base of income tax. And more: at the end of the leasing period the client has the opportunity to buy the car into the property at a residual value.