pl
Leasing
Lease is a method of fixed asset purchase financing alternative to a bank loan.
The financing party (lessor) of a specific product that is the object of lease permits its use within a specified time against a lease agreement. In return, the benefiting party (lessee) pays lease instalments.
Operating lease
The whole of the lease instalments are tax deductible by the lessee,
The leased object is the lessor’s property throughout the whole effective term of the lease agreement and the lessor is responsible for making depreciation allowances.
Financial lease
Only the interest portion of lease instalments represents the lessee’s tax deductible expense.
Upon expiration of the agreement the legal title to the leased object can be transferred from the lessor to the lessee; depreciation allowances are made by the lessee that recognises the charges as an investment in someone else’s assets.
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