LEASING AND TAX RISKS

 LEASING AND TAX RISKS

Acquisition of a building, equipment, or vehicles carries certain prospects for the company's activities, but at the same time requires significant investments. The budget of even a very successful legal entity cannot always afford such expenses, so the management is forced to look for additional sources of financing or to choose other options, such as loans, rent or leasing. If the first two are not always ideal in terms of conditions, then leasing not only allows you to redeem the subject of the agreement, but also, save on taxes from Accountants in Walsall. Leasing, like any operation that is beneficial from the point of view of tax the legislation is checked by specialists from the Federal Tax Service Inspectorate with special care, therefore it is important to know and remember about the tax risks that accompany such a transaction.

THE ESSENCE OF LEASING

Leasing operations are regulated by the provisions of the Federal Law of October 29, 1998, No. 164-FZ "On Financial Lease (Leasing)" (as amended on October 16, 2017, No. 295-FZ) and Chapter 34 of the Civil Code of the Russian Federation. The subject of leasing can be any non-consumable things, including vehicles, equipment, structures, buildings, enterprises, other property complexes, as well as other movable and immovable property. Under the ban - land plots, natural objects, etc. (Clause 2, Article 3 of the Federal Law of October 29, 1998, No. 164-FZ).

The subjects of the lease agreement are the lessor, the lessee, and the seller (clause 1 of article 4 of the Federal Law of October 29, 1998 No. 164-FZ). Any of the parties can be both a resident and a non-resident of the Russian Federation (clause 2 of article 4 of the Federal Law of October 29, 1998, No. 164-FZ).

The principle of cooperation is as follows:

The lessor buys out the property from the seller

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The lessor then transfers the property to the lessee

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The lessee makes monthly payments for the property received

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At the end of the lease agreement, the property can be purchased or returned to the leasing company

A lease agreement is subject to mandatory registration in the Unified Federal Register of Information on the Facts of Legal Entities' Activities in the cases established by the legislation of the Russian Federation (clause 1 of article 20 of the Federal Law of October 29, 1998, No. 164-FZ). This is the direct responsibility of the lessor (clause 3, article 10 of the Federal Law of October 29, 1998, No. 164-FZ). However, everything in the same law states: "by agreement of the parties, the lessor has the right to instruct the lessee to register the leased asset" (clause 3 of article 20 of the Federal Law of October 29, 1998, No. 164-FZ). In the absence of registration, the contract will not be considered concluded.

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