M. Goryacheva

The word leasing is English and means “to rent out.” For Russian entrepreneurs, leasing operations are currently not a common form of rent. However, in accordance with current Russian legislation, leasing means a set of economic and legal relations that arise in connection with the implementation of a leasing agreement, including the acquisition of the leased asset.

According to the Federal Law “On Financial Leasing (Leasing)” (hereinafter referred to as the Leasing Law), the subject of leasing can only be non-consumable items, i.e. buildings, structures, equipment, vehicles, equipment that are used for business activities. Land plots, environmental management facilities and any things that are withdrawn from free circulation in accordance with current legislation cannot be leased.

Some leased items are subject to mandatory state registration with an authorized organization, mainly real estate, vehicles and special equipment. Such a leased asset can be registered both in the name of the lessor and in the name of the lessee by agreement of the parties. In the case when the equipment is registered in the name of the lessee, an entry is made in the title documents that the owner of the leased item is the leasing company.

Who can act as parties to a leasing transaction?

The law determines that the subjects of leasing relations can be the lessor - the leasing company, the lessee and the seller of property. The lessee can be any individual or legal entity that leases this or that property and will use it for business activities. It should be noted that an individual means an entrepreneur without forming a legal entity (PBOYUL).

According to Russian legislation, the leased asset can only be used for business activities, and this is emphasized both in the Civil Code of the Russian Federation (Civil Code of the Russian Federation) and in the law on leasing. In other words, a citizen who is not a private legal entity and wants to use automobiles and other equipment for his personal needs cannot obtain this property on lease. A leasing company can be either a legal entity or an individual that has certain investment resources or is able to attract investment resources and provides the leased asset for temporary possession and use.

Before the adoption of the Federal Law “On Licensing of Certain Types of Activities” in 2001, leasing was a licensed type of activity. In order to operate in the market and provide services, the leasing company had to have the appropriate license, which was issued by the Ministry of Economic Development and Trade of the Russian Federation. Now licensing of leasing activities has been abolished, so leasing can be carried out by any legal entity or individual who has the necessary financial resources for this and whose charter provides for leasing as one of the types of activity.

The supplier of equipment can also be either an individual or a legal entity professionally engaged in the sale of this or that equipment.

Some features of leasing relations

First of all, the leased asset is acquired in order to subsequently be leased under a leasing agreement to a specific lessee. In other words, the lessor does not own it at the time of concluding the leasing agreement. At the order of a potential lessee, he purchases property from a seller chosen by the lessee and transfers it, as part of the leasing agreement, for temporary possession and use to the lessee. During the period of validity of the leasing agreement, the right of ownership of the leased asset is always vested in the lessor, regardless of whether the leased asset is on his or the lessee’s balance sheet.

Current legislation provides that the leased asset can be recorded both on the balance sheet of the lessee and on the balance sheet of the lessor. Whoever is the balance holder of the leased asset will pay property tax. The other party will not pay tax on the leased item, since the leased item is not taken into account on its balance sheet, but is accordingly taken into account in a subaccount in the accounting department.

The leasing agreement may also include the repurchase of the leased property. Thus, the leased asset, by agreement of the parties, upon expiration of the lease agreement, can be purchased by the lessee. The lessee pays the purchase price under the leasing agreement. Sometimes, by agreement, the contract is extended on preferential terms if it is mutually beneficial to both parties. There are also options for returning the leased asset to the lessor, i.e., almost like with a lease - the lessee uses the leased asset for some time, but after that returns it to the lessor, taking into account wear and tear. This leased item cannot be leased for a second time.

Leasing entities enter into relationships with each other that are not only economic in nature, but also legal. In accordance with current legislation, the main contractual basis of a leasing transaction is a financial lease agreement and a purchase and sale agreement. The first is between the lessor and the lessee, the second is between the lessor and the property supplier.

Algorithm of actions of three parties

First, a leasing agreement is concluded, in which the lessor undertakes to acquire ownership of the equipment from a certain seller under certain conditions and transfer it to the lessee for temporary possession and use. The second step is the conclusion of a lessor agreement with the equipment supplier. This agreement must necessarily stipulate that the leased asset is acquired for the purpose of leasing it to a specific lessee and that the leased asset is acquired not just for the business activity of the lessor, but specifically for leasing it. This is required by current legislation, and therefore this condition is stipulated in each purchase and sale agreement.

It should be noted that Article 670 of the Civil Code of the Russian Federation defines the conditions under which the lessee has the right to demand fulfillment of obligations directly from the seller of the property. According to this article, the lessor and the lessee are joint and several creditors in a purchase and sale transaction. The lessee has the right to present directly to the property supplier requirements for the quality and configuration of the property that must be supplied to him under the purchase and sale agreement. Claims may also be made regarding delivery times and other issues that arise from the purchase and sale agreement. The only thing that the lessee cannot do is make demands for termination of the contract without the consent of the lessor. He can only initiate this process by making such a proposal to the lessor.

Another interesting detail of leasing transactions is that the lessor is not liable to the lessee for the seller’s failure to fulfill his obligations under the purchase and sale agreement if both the leased object and the seller are chosen directly by the lessee. In such cases, the lessee makes claims regarding quality, equipment and other issues directly to the seller. In these relations with the seller, the lessor can simply act on the side of the lessee, but in this case he does not bear responsibility for the quality and complete set of the leased item.

The leasing agreement includes certain rights and obligations of the parties; the amounts of leasing payments for the use of the leased asset, which was transferred to the lessee in accordance with the agreement, are established. Leasing payments mean the total amount of payments for the entire term of the leasing agreement. This includes: reimbursement of the lessor's costs for the acquisition of the leased asset; reimbursement of costs associated with the provision of other services; a certain income that indicates the lessor's interest in this transaction. Also, the total amount of lease payments of the concluded agreement includes the redemption value of the leased asset. It is established depending on the term of the leasing agreement and the depreciation rate of the equipment, and therefore the redemption value may be different.

Again, in accordance with current legislation, the amount of leasing payments may change by agreement of the parties within the terms provided for in the leasing agreement. But this can happen no more than once every 3 months. It should be emphasized that a leasing agreement is always concluded in writing, as provided for by the Civil Code of the Russian Federation.

What can the lessee do with the leased asset? He can sublease it, but the written consent of the lessor is required for such a transaction to be legal. A similar consent is required when transferring the leased asset for rent. If such a scheme is assumed initially, this clause can be included in the leasing agreement, but the term of subleasing or rent cannot exceed the term of the leasing agreement.

The legislation also provides that if the lessee has made some improvements to the leased asset with the consent of the lessor, which are inseparable without harm to the leased asset, the lessee, after termination of the contract, has the right to compensation for the cost of such improvements. If the improvements were made at the expense of the lessee, but without the written consent of the lessor, the lessee has no right to reimbursement of costs.

Insurance of the leased item and risks associated with it

The Leasing Law provides for the risks of loss, shortage, and damage to the leased item from the moment the property is delivered to the seller until the end of the leasing agreement. All these risks lie with the lessee. To avoid them, the parties can agree and insure the leased item. In this case, the insured can be both the lessor and the lessee - this is again established by agreement of the parties. Who is the insured for this transaction, who is the beneficiary, what is the insurance period and the insured amount - all this is determined by the leasing agreement. Typically, the beneficiary of this transaction is the lessor, regardless of who is the insured under the transaction. This is dictated by the fact that the ownership of the leased asset belongs to him and it is he who is interested in keeping the leased asset.

The Law “On Compulsory Civil Liability Insurance of Vehicle Owners” has come into force in Russia. If we talk about civil liability insurance, i.e. liability to third parties (damage to health, property, etc.), then according to the federal Law “On Leasing”, the lessee must insure his liability. After the leased item is transferred to him, he is responsible for any damage caused by this equipment to third parties.

Securing a leasing transaction

According to current legislation, there are several types of security for the fulfillment of obligations of a leasing transaction. This can be a guarantee, pledge, penalty, deposit, retention, etc. There is an opinion that the leased asset transferred to the lessee is the subject of pledge from the lessor. Based on the current legislation, this statement can be considered incorrect; it does not lie in the legal field, because the pledgor is always the debtor of the obligation, and the pledgee is the creditor. The pledgor of a thing can be either the owner of the property or a person who has the right of economic management over it. If we consider the lessor and the lessee, then in our case the debtor under the leasing agreement is the lessee, and the lessor is the creditor and owner of the property. Therefore, an item leased cannot in any way be the subject of a pledge.

If we talk about a pledge as security for a leasing agreement, then, of course, we should keep in mind the pledge of property owned either by a legal entity or an entrepreneur without forming a legal entity on the right of ownership, on the right of economic management, or the property of third parties.

Article 13 of the Federal Law “On Leasing” provides additional rights to ensure the fulfillment of obligations by the lessee to the lessor. Firstly, if the lessee fails to transfer two payments in a row, the law gives the lessor the right to issue a collection order to the lessee’s bank for the undisputed debiting of funds from his current account in the amount of the debt that he has to the lessor. Undisputed write-off - this means, without agreement with the lessee (the client of the bank in which the account is opened), money can be written off from his current account in accordance with the Law “On Leasing”. In case of significant violations of the leasing agreement by the lessee, i.e. long delays in payments, use of the leased item in violation of all technical requirements, etc., the lessor may refuse to fulfill the agreement and demand (in writing) the return of the item within a reasonable time leasing This may be a notice of unilateral refusal to fulfill the contract.

Tax obligations

On January 1, 2002, Chapter 25 of the Tax Code of the Russian Federation came into force, which retained all the advantages and positive aspects of leasing. As before, this method of financing allows the lessee to minimize its income tax costs. I would like to draw your attention to four main points regarding taxation. Firstly, as already mentioned, by agreement of the parties, the leased asset can be placed on the balance sheet of both the lessor and the lessee. Secondly, regardless of the chosen method of accounting for the property of the leased asset, leasing payments fully reduce the taxable base of the profit tax, i.e. they are fully expensed and thereby reduce the taxable base of the profit tax. Thirdly, in connection with the introduction of new depreciation indicators from January 1, 2002, 10 depreciation groups were allocated for fixed assets. They are installed in accordance with the useful life, within the boundaries established by Government decree. Fourthly, leasing has tangible advantages - accelerated depreciation is possible, the applied depreciation coefficient can be up to 3 - this is also established by agreement of the parties. Therefore, from a tax perspective, leasing for lessees is a rather interesting mechanism that can be taken into account when choosing a method for attracting any investments.

Enterprise - supplier of the leased item

1 - conclusion of a leasing agreement

2 - payment for delivery of the leased item

3-delivery of the leased item

4-payment for property leasing

Leasing payments

Leasing payments mean the total amount of payments under the leasing agreement for the entire term of the leasing agreement, which includes reimbursement of the lessor's costs associated with the acquisition and transfer of the leased asset to the lessee, reimbursement of costs associated with the provision of other services provided for in the leasing agreement, as well as the lessor's income. The total amount of the leasing agreement may include the redemption price of the leased asset if the leasing agreement provides for the transfer of ownership of the leased asset to the lessee.

The amount, method of making and frequency of leasing payments are determined by the leasing agreement, taking into account this Federal Law.

If the lessee and the lessor make payments for lease payments using products (in kind) produced using the leased asset, the price for such products is determined by agreement of the parties to the leasing agreement.

Unless otherwise provided by the leasing agreement, the amount of lease payments may be changed by agreement of the parties within the time limits provided for in this agreement, but not more than once every three months.

The lessee's obligations to pay lease payments begin from the moment the lessee begins using the leased asset, unless otherwise provided by the leasing agreement.

For profit tax purposes, leasing payments are classified, in accordance with the legislation on taxes and fees, as expenses associated with production and (or) sales.

Subleasing is a type of sublease of a leased asset, in which the lessee under a leasing agreement transfers to third parties (lessees under a subleasing agreement) for possession and use for a fee and for a period in accordance with the terms of the subleasing agreement, the property previously received from the lessor under the leasing agreement and constituting the leasing object .

When transferring property into subleasing, the right of claim against the seller passes to the lessee under a subleasing agreement.

When transferring a leased asset for subleasing, the consent of the lessor in writing is required.

Leasing entities are:

1) lessor - an individual or legal entity who, at the expense of borrowed and (or) own funds, acquires ownership of property during the implementation of a leasing agreement and provides it as a leased asset to the lessee for a certain fee, for a certain period and on certain conditions for temporary possession and use with transfer or without transfer to the lessee of ownership of the leased asset;

2) lessee - an individual or legal entity who, in accordance with the leasing agreement, is obliged to accept the leased asset for a certain fee, for a certain period and under certain conditions for temporary possession and use in accordance with the leasing agreement;

3) salesman - an individual or legal entity who, in accordance with a purchase and sale agreement with the lessor, sells to the lessor within a specified period the property that is the subject of leasing. The seller is obliged to transfer the leased item to the lessor or lessee in accordance with the terms of the purchase and sale agreement. The seller can simultaneously act as a lessee within the same leasing legal relationship.

The functions of a seller in the leasing services market are most often performed by enterprises that manufacture property, but these can be companies engaged in the wholesale trade of machinery or equipment.

The three categories indicated above are the main, “classic” leasing entities. In addition to them, there may also be indirect participants in the leasing transaction: banks and other financial institutions (provide lessors with borrowed funds necessary to purchase property); brokerage firms (search for partners, provide information to other market participants, and other intermediary functions); consulting firms specializing in leasing.

Subject of leasing there can be any non-consumable things, including enterprises and other property complexes, buildings, structures, equipment, vehicles and other movable and immovable property that can be used for business activities. The subject of leasing cannot be land plots and other natural objects, as well as property that is prohibited for free circulation by federal laws or for which a special circulation procedure has been established.

Ownership of the property and provides it to the lessee as a leased item for a certain fee, for a certain period and on certain conditions for temporary possession and use with or without transferring to the lessee the right of ownership of the lease (Federal Law "On Leasing" dated October 29, 1998 .).

Large legal dictionary. - M.: Infra-M. A. Ya. Sukharev, V. E. Krutskikh, A. Ya. Sukharev. 2003 .

See what a “LESSOR” is in other dictionaries:

A company that purchases equipment at its own expense and rents it out. In the Russian Federation, the functions of a lessor are often performed by commercial banks. In English: Leasing company Synonyms: Leasing company English synonyms: Leasing holder See also:… … Financial Dictionary

Lessor is an individual or legal entity who, at the expense of borrowed or own funds, acquires ownership of property during the implementation of a leasing transaction and provides it as the subject of leasing... ... Wikipedia

A legal entity or individual who leases equipment or an object on contractual terms with the lessee, while remaining the owner of the equipment or object. Dictionary of business terms. Akademik.ru. 2001... Dictionary of business terms

Lessor- an individual or legal entity who, at the expense of borrowed and (or) own funds, acquires ownership of property during the implementation of a leasing agreement and provides it as a leased asset to the lessee for a certain... ... Official terminology

Lessor- an individual or legal entity who, at the expense of borrowed or own funds, acquires ownership of property during the implementation of a leasing transaction and provides it as a leased asset to the lessee for... ... Encyclopedic dictionary-reference book for enterprise managers

Lessor- see Finance lease agreement; Leasing… Encyclopedia of Law

lessor- an individual or legal entity who, at the expense of borrowed or own funds, acquires ownership of property during the implementation of a leasing transaction and provides it to the lessee as a leased asset for... ... Large legal dictionary

LESSOR- (leasing company) – a legal entity that has a license to engage in leasing activities. It could be: the head financial leasing company of the corporation; enterprises of the corporation created to carry out leasing operations... ... Economics from A to Z: Thematic Guide

LESSOR- (le or) a legal entity or individual acting as a lessor under a leasing agreement. This concept covers the following categories of companies: industrial concerns producing machinery and equipment; trading companies; commercial... ... Foreign economic explanatory dictionary

Lessor- An individual or legal entity who, at the expense of borrowed and (or) own funds, acquires ownership of property during the implementation of a leasing agreement and provides it as a leased asset to the lessee for a certain... ... Vocabulary: accounting, taxes, business law

Leasing is represented by a special financial lease, on the basis of which the lessee can take ownership of any expensive object after a certain period of time transfers the rent to the owner of the property. The lessor is the second participant in this transaction, who is represented by the owner of the leased object. He buys ownership of any item, most often represented by a car, real estate or expensive equipment. He transfers this property to the second party to the agreement on the basis of a leasing agreement. At the same time, the contract specifies the conditions on the basis of which cooperation is carried out.

Leasing concept

Leasing is also called financial lease. Its features include:

• such a transaction involves the lessor, the seller of the property and the lessee;
• parties to the agreement can be individuals or companies;
• such a transaction consists in the fact that certain property is transferred by the owner to another party for temporary use for a certain fee;
• the choice of the seller of the property can be carried out by both parties to the leasing agreement;
• at the end of the leasing period, the lessee can buy back the used item;
• any organization can act as both a seller and a lessee;
• A feature of financial lease is that completely new property is transferred for use, and often it is chosen by the direct lessee, after which it is acquired by the lessor.

All these factors must be taken into account by all parties to the agreement.

Transaction participants

In such a transaction there are three participants, which include the lessor, the lessee and the seller of the property. Therefore, at least two contracts are drawn up. These agreements are interrelated.

The lessor is a participant in the transaction who receives profit from the transfer of purchased property for use to another party. In this case, the lessee can purchase the property if necessary. But he may decide to return the item.

Who can be a lessor?

If any company or person wants to become a leasing participant, then they must understand what leasing, the lessor and the lessee are. Each participant has both rights and responsibilities. Additionally, after signing a formal agreement, they have a certain responsibility to each other.

The lessor may be:

• private individuals officially registered as individual entrepreneurs;
• leasing companies, and these may even include banks, but for this, the charter must contain information that allows them to engage in this type of activity.

Leasing can be offered to both different companies and individuals. The conditions for any client may differ significantly, since before signing the contract, the financial condition and other characteristics of the person or company are carefully studied.

What actions are performed by the lessor?

A lessor is a company that offers specific services to clients. They consist in the fact that the property needed by the client, which was previously purchased from a suitable seller, is transferred for use. The lessor, represented by the company, is obliged to perform several significant actions on the basis of this contract. These include:

• a certain agreement is reached with a specific client;
• a search is carried out for a seller offering property that meets the client’s requirements;
• the company purchases the item;
• the property is transferred for use to the client, for which a leasing agreement is drawn up, and the lessor remains the owner of the item, but receives a certain amount monthly for the transfer of the item;
• at the end of the agreement, the leased asset may be returned to the company or become the property of the lessee.

In order for a company to have the right to engage in such activities, its constituent documentation must contain the relevant information.

Nuances of leasing property

The leased property remains in the use of the lessee throughout the entire term of the contract. The leased asset remains the property of the lessor, so it is he who is the owner of this property. The rules for leasing various objects include:

• if the recipient of the property, for various reasons, stops contributing funds in the form of payment under the agreement, then he may lose the right to use this item;
• if the lessee is declared bankrupt, then it is the lessor who has the primary right to receive payments under the leasing agreement;
• If the property is destroyed in any way, the recipient is obliged to reimburse the owner for all costs of purchasing the item.

A leasing agreement has legal force only if certain mandatory conditions are present. Therefore, the parties must take a responsible approach to the formation of this document. If it contains errors or clauses that violate legal requirements, it will be impossible to defend your rights in court.

What responsibilities does the lessor have?

The responsibilities of the lessor are clearly stated directly in the formal contract. They must be strictly observed by the participant in the transaction. These include:

• purchase from the seller of property that meets the requirements and desires of the lessee;
• transfer of the purchased item to the second party to the agreement;
• providing the seller of the property with information that the item will be leased, and the notification must be made exclusively in writing;
• reimbursement of the lessee's costs associated with improvement, maintenance or repair work in relation to the received property, if this is specified in the official contract;
• at the end of the agreement, the property is taken back if the lessee, for various reasons, does not want to buy it back;
• the company is obliged to fulfill all obligations specified in the leasing agreement.

If the lessor violates these obligations, this may lead to early termination of the contract or the company being held liable. Leasing may be offered to individuals or companies, but the responsibilities remain the same.

Company remuneration

The lessor is a participant in the transaction who receives a certain profit from its conclusion. Cash payments received from the lessee consist of two parts:

• direct remuneration for the transfer of property;
• compensation for costs incurred by the company in the process of purchasing the subject of the contract.

To determine the fee, it is important to make the necessary calculations in advance. The lessor's risks are associated with the fact that if the recipient of the property refuses to transfer funds for various reasons, the company will not be able to receive the required amount of profit. Although she has the right to recover compensation from the violator of the agreement, it will still be less than the profit that could have been received from the transaction.

What rights does the company have?

The rights of the lessor are presented in the following forms:

• independent selection of the leased asset, if this is provided for in the current leasing agreement;
• filing claims against the lessee if he violates the terms of the contract or mishandles the received property, which leads to its damage or destruction;
• early termination of the contract with simultaneous receipt of compensation if the second party to the transaction violates the terms of cooperation;
• extension of the contract term, if necessary for the lessee;
• resumption of cooperation on new terms, which should be mutually beneficial.

If the agreement is drawn up correctly, it can be used in court to assert the rights of each participant. Therefore, if the lessee, for various reasons, refuses to transfer funds, he will be forced by a court decision to pay large compensation.

What costs does the lessor face?

When providing leasing to individuals or companies, the lessor is forced to bear certain costs. These include:

• acquisition of property that is the subject of a leasing agreement;
• costs associated with providing various guarantees to the lessee;
• payment of property tax;
• if an item is purchased in another country, then you have to additionally spend money on proper customs clearance and payment of customs duties and taxes;
• costs of delivery and installation, as well as adjustment of equipment, if such actions are provided for in the agreement;
• protection of property during its transportation or storage in a warehouse;
• costs associated with maintaining and repairing the item.

Additionally, costs may arise when registering an object transferred to the lessee. Therefore, all these costs must be covered by the income received from the leasing agreement. This leads to the fact that, after a preliminary agreement, the lessor must make some mandatory calculations to determine the optimal monthly payment.

Lessor's liability

The lessor is represented as a link between the user and the seller of the property. He has the required amount of funds necessary to purchase this item. Next, the property is transferred to the client, who can use it for its intended purpose, but does not become its owner.

The responsibility of the company that provides leasing services is as follows:

• if the company violates the interests or rights of the lessee, as well as the terms of the agreement, the agreement may be terminated early, and the lessor will not be able to count on receiving compensation;
• if the property is provided for use to the second party to the transaction in violation of the deadlines, the lessee may demand the accrual of a penalty;
• If an item is transferred that does not meet the client's requirements, this may result in a significant reduction in monthly payments.

Therefore, it is in the interests of the direct leasing company to strictly follow the terms of the contract.

Conclusion

The lessor is represented by a company that is engaged in leasing any property to other companies or individuals. He can be represented by a citizen who has officially registered as an individual entrepreneur. He has numerous rights and responsibilities.

If the lessor violates the clauses of the formal agreement, then he will have to bear responsibility for his actions. It is represented by early termination of the contract, lack of compensation and other negative consequences.

Regulatory framework and definition of leasing

Let's look at how to make transactions when leasing , But first, let’s determine what laws govern this operation. Leasing is a financial lease and is described in paragraph 6 of Chapter. 34 of the Civil Code of the Russian Federation, and is also regulated by the Law “On Financial Leases” dated October 29, 1998 No. 164-FZ. Accounting for leasing transactions is carried out in accordance with the order of the Ministry of Finance of Russia “On the reflection in accounting of transactions under a leasing agreement” dated February 17, 1997 No. 15.

ATTENTION! Order of the Ministry of Finance dated 02/17/1997 No. 15 loses force as of 01/01/2022. Starting from this period, leasing accounting transactions must be taken into account in accordance with FAS 25/2018 “Lease Accounting”, approved. by order of the Ministry of Finance dated October 16, 2018. The standard can be applied earlier by registering this fact in the enterprise’s accounting policy.

To briefly describe the essence of leasing, one party to the transaction (the lessor) buys property from an agreed seller for the second party to the transaction (the lessee) and receives money for this service, transferring the property into the possession of the lessee for a certain period. After this period, the property can be purchased by the lessee.

The specified property is in the possession of the lessor and is recorded on its balance sheet. However, the terms of the leasing agreement may provide for accounting of the leased property on the balance sheet of the other party to the transaction, that is, the lessee.

An example of calculating a leasing agreement

The total amount of the leasing agreement is RUB 751,500.00, including VAT 20% - RUB 125,250.00. Initial payment (advance payment) - 150,000.00 rubles, including VAT 20% - 25,000.00 rubles. Leasing term - 2 years (24 months + the last month the redemption price is paid), redemption price - 1,500.00 rubles, including VAT 20% - 250 rubles. Read about what the redemption value of a leased asset is.. Monthly payment is (751,500.00 - 1,500− 150 000,00 ) / 24 = 25,000.00 rubles, including VAT 20% - 4,166.67 rubles.

It is worth noting that there is no single standard for a leasing agreement, so the advance payment can also be counted as the first monthly lease payment or towards several monthly lease payments. These conditions must be clearly stated in the leasing agreement.

In the future, we will use the conditions from this example to describe accounting entries.

Accounting entries for the lessee, property on the lessee’s balance sheet

Let's consider an example of leasing accounting if the property is on the balance sheet of the lessee and its redemption value is paid separately in the last month of the lease.

In this case, the leasing transactions for the lessee will be as follows:

1. The leased item arrived to the lessee:

2. From the 1st day following the month of receipt of the leased asset, depreciation is calculated by posting

Dt 20 (23,25,26, etc.) Kt 02 “depreciation of leased property”

Let's assume that the useful life of the leased asset is 60 months. Then the amount of monthly depreciation will be 10,437.50 (626,250 / 60 months).

For transactions on depreciation of fixed assets and options for calculating depreciation, see.

3. Since, according to the terms of the example under the leasing agreement, the buyer pays the down payment, the postings will be as follows:

The VAT amount can be deducted on the received advance invoice, or you can not. In this case, if it is more profitable to defer the VAT deduction, the entries in bold italics do not need to be made.

4. Monthly accounting entries for leasing on the lessee’s balance sheet are as follows:

Debit	Credit	Sum	Content
76 "Rental obligations"		25 000	monthly payment taken into account
76 "Debt on leasing payments"	51	25 000	monthly payment paid to the lessor
68 "VAT"	19	4 166,67	accepted for deduction of VAT regarding the leasing payment
76 VA	68 "VAT"	1 041,67	VAT has been restored from the advance payment (25,000 VAT accepted for deduction on the advance invoice / 24 months)

If VAT on the advance invoice was not accepted for deduction, then the posting in bold italics does not need to be made.

Redemption by the lessee of property on its balance sheet

Let's consider the transactions for the redemption of the leased asset.

Debit	Credit	Sum	Content
76 "Lease obligations"	51 "Current accounts"	1 500	the redemption value of the leased object is listed
68 "VAT"	19	250
02 "Depreciation of leased property"	02 "Depreciation of fixed assets"	250 500	amount of accumulated depreciation (10,437.50 × 24 months)
01 "OS"	01 "Leased property"	626 250	fixed assets transferred from leased to owned

As already mentioned in the example, there may also be contracts where the redemption amount is not allocated separately, but is included in the monthly lease payments. In this case, a controversial question arises about the date of acceptance of VAT for deduction from the purchase price: is it possible to accept VAT for deduction in full on a monthly basis from lease payments or is it necessary to accept part of the VAT for deduction only after the purchase of the leased property. Letters from the Ministry of Finance of the Russian Federation dated November 15, 2004 No. 03-04-11/203 and dated November 9, 2005 No. 03-03-04/1/348 indicate that VAT can be deducted in those tax periods in which lease payments are paid . Thus, if the agreement does not highlight the redemption value of the leased asset, the accounting entries for the lease redemption on the lessee’s balance sheet will be similar to the example considered, where the redemption value is highlighted.

Don't know your rights?

Postings of the lessee, if the property is on the balance sheet of the lessor

Let's consider the same example, but now the leased item is on the lessor's balance sheet.

Debit	Credit	Sum	Content
001 "Leased OS"		751 500	leased property is registered off balance sheet
76 "Debt on leasing payments"	51	150 000	down payment paid
68	76.VA	25 000	VAT allocated from advance payment
20 (23,25...)	76 "Debt on leasing payments"	20 833,33	monthly payment included in expenses
19	76 "Debt on leasing payments)	4 166,67	VAT is taken into account regarding the leasing payment
76 "Debt on leasing payments	51	25 000	advance payment transferred to the lessor
76 VA	68 "VAT"	1 041,66	VAT has been restored from the advance payment

If the advance invoice issued for prepayment under a leasing agreement does not include VAT for deduction, then the entries in bold italics do not need to be made.

In this case, depreciation is not accrued.

Debit	Credit	Sum	Content
	001 "Leased OS"	751 500	leased property was written off off-balance sheet due to the expiration of the leasing agreement
76 "Rental obligations"	51	1 500	the purchase price of the leased property is listed
10 "Materials"	76 "Rental obligations"	1 250	leased property was accepted for accounting at redemption value as part of inventory
19	76 "Rental obligations"	250	VAT included
68 "VAT"	19	250	VAT on the redemption price is deductible

Accounting for a leasing agreement with the lessor

Let's look at an example of leasing transactions on the lessor's balance sheet . Let the property purchased for leasing be on the balance sheet of the lessor. Let's take the numbers again from the example above.

Let's assume that the leased object was purchased by the lessor for 450,000 thousand rubles. (including VAT 75,000). useful life 60 months. Depreciation is calculated using the straight-line method and amounts to RUB 6,250. ((450,000 - 75,000) / 60 months)

The purchase and commissioning operations are as follows:

Accounting for leasing payments:

Now let’s consider the process of buying out leased property from the lessor, if he is also the balance holder of this property.

Let's consider accounting with the lessor if the property is recorded on the lessee's balance sheet.

Acquisition, payment and commissioning are no different from the case when the lessor is the balance holder.

There is no need to accrue depreciation on the leased asset - based on the terms of the leasing agreement, it must be accrued by the lessee (clause 50 of the Guidelines for accounting of fixed assets).
The transfer of the leased object to the lessee is usually reflected in the following order:

In this case, the costs recorded on account 97 can be recognized as expenses for ordinary activities as income in the form of leasing payments is recognized through a reasonable distribution between reporting periods (for example, in proportion to leasing payments recognized in income) (clause 5, 19 PBU 10/99 "Expenses of the organization").

The posting in the income generation period will be as follows: Dt 20 (23.25...) Kt 97.

Let's consider accounting for monthly lease payments:

Debit	Credit	Sum	Content
51	62	150 000	an advance was received
62	90	150 000	the advance is recognized in the amount of income
90 "VAT"	68 "VAT"	25 000	VAT charged
20	97	75 000	part of the cost of the leased object is recognized as expenses in proportion to recognized income (150,000 × 100 / 750,000 = 20% × 375,000)
51	62	25 000	monthly payment has been received into your account
62	90	25 000	income is recognized in the amount of the lease payment
90 "VAT"	68 "VAT"	4 166,67	VAT charged
20	97	12 500	part of the cost of the leased object is recognized as expenses in proportion to recognized income (25,000 × 100 / 750,000= 3.33% × 375,000)

The redemption of leased property is registered with the following entries:

Debit	Credit	Sum	Content
62	90	1 500	income is recognized in the amount of the redemption price
90 "VAT"	68 "VAT"	250	VAT charged
20	97	75 000	the initial cost of the leased asset not written off at the time of redemption is reflected (12,500 × 24 - 375,000)
51	62	1 500	the redemption price of the lease was credited to the account
	011	375 000	the leased object is written off balance sheet

If the redemption value is not separately allocated in the leasing agreement, then the redemption of the leased asset, subject to payment of all payments, is formalized by a single write-off from off-balance sheet account 011 “Fixed assets leased” in the amount of the lessor’s costs excluding VAT.

Features of car accounting in leasing

Let's say an organization has leased a car and it is on the balance sheet of the lessee - the postings in this case are similar to those given above. Also, if the lessor is the balance holder of the leased car, there will be no changes in the postings. That is, a leased car is taken into account for accounting purposes in the same way as other property. The only issue that is added is the payment of transport tax, as well as compulsory MTPL and CASCO insurance.