Lessor– one of the subjects of the leasing transaction, which purchases the necessary equipment (equipment, real estate) from the supplier and transfers it for temporary operation (rent) to the lessee. In this case, it is drawn up under certain conditions that are stipulated in the leasing agreement.

Lessor– is an individual or legal entity. In the first case, the participant in the leasing transaction can be an individual entrepreneur (individual) with the appropriate state registration in hand. In the second case - credit institutions or banks whose charter makes it possible to carry out leasing activities. In addition, this category of legal entities includes specialized or organizations whose constituent documents allow them to deal with leasing issues.

Role and responsibility of the lessor

Lessor– this is one of the connecting links between the selling company (supplier) and the leasing recipient (tenant). At the same time, the algorithm for registering leasing and the participation of the lessor in it is as follows:

The leasing recipient finds a seller who has the necessary property;

The lessor purchases the goods needed by the client as personal property. In this case, the equipment is not purchased for personal use, but for subsequent lease to its client (the recipient of the lease);

The leasing company deals with the process of transferring the leased object based on the terms of the contract and for a fee;

Upon completion of the leasing transaction (depending on the terms of the agreement), the property is transferred to the leasing recipient (at the residual price) or returned to the leasing company.

For the entire period specified in the contract, the leased object is in the use of the lessee. In this case, the owner still remains the leasing company. If the leasing recipient fails to fulfill obligations in a timely manner or in full, and also delays payments, then the leasing company, based on the terms of the agreement, can take away the property from the leasing recipient. In the event that the leasing recipient goes bankrupt, the leasing company must receive the first payments.

If the lessor in one way or another interferes with the client’s choice of the supplier company or the object of the leasing transaction, then he bears full responsibility for the untimely delivery of equipment. In addition, the lessee is responsible for damage that may be caused to the life of the client or citizens during the period of use of the leased asset. But lately this point has been included less and less often, and all responsibility is shifted from the lessor’s shoulders directly to the user (lessee).

If we are talking about making a major transaction and purchasing a large batch of equipment, then the lessor has the right to attract investment funds, insurance companies, banking institutions, independent private investors, and so on as auxiliary investors.

Rights and obligations of the lessor

When drawing up an agreement, the lessor, as a party to the transaction, assumes certain rights and obligations. All of them are reflected in the contract and must be strictly observed by the party to the transaction.

Thus, the lessor undertakes the following obligations:

1. Buy from the product supplier (seller) a specific type of property, which for a certain fee and on fixed terms is transferred to the second party to the transaction - the tenant (lessee).

2. Notify the seller (supplier company) that the purchased property will be leased to a specific party to the transaction. This requirement is stated in Article 667 of the Civil Code of the Russian Federation. In this case, notification to the seller must be made exclusively in writing.

To implement such a requirement, the full details of the leasing recipient are specified in the goods purchase and sale agreement between the parties to the transaction. In addition, when drawing up an agreement with the seller, the document may contain links directly to the leasing agreement. In addition, the seller (supplying company) can be notified of the relevant purpose of the purchase by writing a letter. In this case, the seller can undertake to deliver the goods purchased by the lessor directly to the lessee.

3. Compensate the second party to the transaction (the leasing recipient) for everything for improvement, maintenance or repair of obvious defects of the leased asset (if such was provided for in the contract).

4. Accept back equipment transferred under a leasing agreement in the event of termination of the latter or expiration of its validity period.

5. Fulfill all other obligations that are specified in the agreement between the parties. These include:

Purchase of intellectual property rights (license rights, brands, software, trademark rights, etc.);

Purchase from a third party of equipment necessary for commissioning;

Carrying out repair and commissioning work at the lessee’s facility (if there is an agreement on this);

Training;

Ensuring the repair of equipment transferred to the disposal and its timely post-warranty service.

The leasing company (lessor), as a rule, can undertake the most serious work, such as major repairs or routine operation;

Prepare the necessary area for the installation of the necessary equipment;

Provide assistance in the installation of transferred equipment, its installation, adjustment, and communications;

Other types of activities without which it is not possible to properly use the leased asset.

Along with the obligations, the lessor also has some rights. :

1. Invest funds to purchase an object to be leased. For these purposes, both personal and borrowed funds can be used.

2. Conduct inspections of the lessee to ensure that he is complying with the terms of use of the object of the leasing transaction, as well as the quality of the maintenance conditions.

3. Terminate the agreement and demand the return of the object of the leasing transaction if the conditions of the second party to the transaction are not fulfilled and on the basis of the conditions specified in the leasing agreement.

4. Refuse from the agreement in those cases provided for by the law of the Russian Federation or a documentary agreement of the parties.

5. Reclaim debts from the leaseholder indefinitely, based on a notarial signature.

6. Demand from the second party to the transaction (lessee) compensation for all material losses in cases discussed in the leasing agreement.

7. Require the lessee to immediately return the object of the leasing transaction or fulfill financial obligations in the event of failure to comply with the terms of the subleasing agreement, for example, an obvious delay in the agreement.

Costs and remuneration of the lessor

The leasing agreement, as a service, relates to investment activities. Consequently, the leasing recipient undertakes to compensate the leasing company for expenses in financial and material form, as well as to pay remuneration in full. In this case, the total amount of the leasing transaction consists of two components - payment of remuneration and compensation of investment costs. Each of the “components” has its own characteristics:

1. Investment costs – these are the expenses of the leasing company that are associated with the purchase and use of the object of the leasing transaction by the recipient of the lease.

“IZ” includes:

To update equipment, purchase new vehicles, expand production or office space, large financial investments are required. What to do if it is not possible to collect the required amount at a time or take out a loan? There is a very effective alternative - leasing. Let's talk about what this term means, what types of leasing there are, what property can be leased, how to correctly complete such a transaction, and what pitfalls this procedure has.

Despite the fact that “lease” is translated from English as “rent,” leasing is a kind of “hybrid” of rent and credit with the involvement of a third party – a leasing company. The latter buys the property from the seller and transfers it to the lessee. He pays a certain amount monthly, which is both a rental payment and a loan payment (depending on the user’s further intentions). At the end of the period specified in the contract, the property can be purchased at its residual value or returned to the leasing company.

Simple example:

The auto company plans to renew its bus fleet. It enters into an agreement with a leasing company (let it be VTB Leasing, YarKamp Leasing or any other). A leasing company buys 10 buses from a manufacturing plant (let’s say MAZ) for a total amount of 60 million rubles. The buses are transferred to the auto company, which pays an initial payment of 10 million rubles, and then deposits 1.6 million rubles monthly into the leasing company’s account for three years.

In the 19th century, leasing began to actively develop in the USA and Great Britain. The concept of “lend-lease” during the Great Patriotic War became significant for our country: the provision of military equipment was also a leasing option. Leasing began to significantly influence economic development in the 50s of the last century. The founder of the modern leasing industry is called American entrepreneur Henry Schofeld, who opened the first specialized leasing company in San Francisco.

In the USSR, leasing was used for enterprises to purchase expensive imported equipment back in the 70s and 80s, but its scale was limited. In the domestic market, the first leasing operations began in 1989. Until the mid-90s, leasing did not have a serious impact on the Russian economy. After the modernization of tax legislation and the adoption of the federal law “On financial lease (leasing)” in 1998, business interest in this instrument increased significantly. At the end of 2017, the volume of the leasing market in the Russian Federation was estimated by specialists of the rating agency RAEX (Expert RA) at a trillion rubles.

Parties to the leasing transaction

Typically there are three parties involved in the leasing process:

1 Seller– a legal entity or individual entrepreneur (necessarily a VAT payer) that owns or sells the necessary equipment. The property is transferred to the lessor on the basis of a purchase and sale agreement.

2 Lessor– its role is played by a leasing company, which can be registered both as a legal entity and as an individual entrepreneur. Most often, banks or structures with them that have sufficient capital to purchase expensive property (vehicles, real estate, equipment) act as a lessor.

3 Lessee- this is a buyer, also either a legal entity in any organizational and legal form, or an individual entrepreneur who needs equipment, transport or real estate of the seller for use in commercial activities and obtaining.

Sometimes the seller is also the lessor, then there are two parties involved in the transaction, not three.

What is the economic meaning of leasing?

Each party to a leasing transaction has its own reasons for participating in it.

• The seller sells his goods and receives the full value of the property and no risks;
• The lessor benefits from an increase in the value of the property included in the lease payment.;
• The lessee purchases the property on more favorable (interest rate/down payment) or more favorable (solvency requirements) conditions compared to a bank loan. He has the right to refuse the purchase if the circumstances of his business have changed. In addition, the buyer saves on tax payments (VAT, income tax, property and transport taxes, if vehicles are purchased).

A feature of a leasing transaction is a reduction in the redemption price of the property by the end of the contract. This happens due to depreciation– annual write-off of part of the value of an asset as it wears out. Depreciation is taken into account using special formulas and does not depend on the actual wear and tear of the product. In leasing transactions for certain types of property, accelerated depreciation is applied, due to which, by the end of the contract, transport or equipment have zero value and become the property of the lessee without additional payment.

According to the federal law “On financial lease (leasing)” (No. 164-FZ dated October 29, 1998 with subsequent amendments), movable and immovable property can be leased: vehicles, equipment, real estate, enterprises as economic complexes.

The subject of leasing cannot be natural objects, land plots and property with limited circulation. An exception in this sense is weapons - the Russian Federation has the right to sell them to other countries on lease under the conditions established in international treaties and the law on military-technical cooperation.

There are other leasing restrictions set by the lessors themselves. In particular, buyers who wish to lease the following are refused:

Labor leasing relations in Russia are regulated by federal law dated May 5, 2014 No. 116-FZ. It outlines the following rules:

• Personnel leasing can only be carried out by private recruitment agencies operating on the basic tax system and accredited by the state employment service.
• Contracts for the employment of an employee with a lessee cannot be concluded for longer than 9 months.
• All employee transfers can only be carried out with his written consent.
• The salary of a “leasing” employee for the same work cannot be lower than that of the lessee’s full-time employees.
• The leasing company is obliged to pay all necessary compensation for occupational hazards - the same ones that are paid to the main employees of the lessee.

The law establishes certain restrictions for “rental” labor. You cannot engage leasing personnel:

• To perform work of I and II hazard classes or 3 and 4 degrees of harm;
• To perform the work of a freight forwarder or other employees on shipping transport;
• To perform work at enterprises that are in bankruptcy;
• To replace striking workers
• To work in conditions of threat of dismissal of key employees

What types of leasing are there?

In a leasing transaction, a lot depends on the terms of the contract. Depending on them, three types of leasing can be distinguished:

1 Financial

With this option, the lessor is, in fact, only a financial intermediary, formally participating in the transaction. The property is delivered directly from the seller to the lessee; the latter makes claims regarding the quality of this property to the seller. By the end of the lease agreement, the property, as a rule, has a minimum residual value.

In such a scheme, the leasing agreement often stipulates the seller’s obligation to accept the property if the buyer returns it to the lessor. The bank does not need old cars or machines, to put it simply. VTB24, Avangard Bank, Promsvyazkapital group and others have their own leasing subsidiaries.

2 Operating

With this leasing option, the contract term is significantly shorter than the service life of the acquired property (real estate, industrial complex, etc.). In this regard, the role of the leasing company in the transaction is key. The lessor assumes full responsibility for the safety of the leased property, organizing repairs, insurance and maintenance.

The role of the lessee in this scheme is close to the role of the tenant. When the contract ends, the buyer has the right:

• Buy the property at its residual value (in this case, this value is quite high due to the long depreciation period);
• Return the property to the leasing company;
• leasing agreement, if the lessor does not object to this;
• Exchange property for another (for example, production equipment for more modern or different characteristics).

The operational type of leasing is often used by dealers of large automakers: the buyer uses a car of a certain brand for 2-3 years, and then rents out and leases again a more modern model.

3 Returnable

The most specific type of leasing. Here the seller and the lessee are one person. In fact, the transaction is a form of secured lending, when the property is transferred to the lessor only formally, while actually remaining in its place. An enterprise can sell the equipment it owns and then lease it, receiving a large sum of money for development and maintaining production capacity.

However, these types of transactions are also the most corruption-intensive.

A fresh example from the Vologda region

A leasing transaction for the sale of a large cinema center took place here. The seller was an LLC, let's call it Alpha. This company owned the cinema center for over 10 years. but the business did not take off, the debts grew, and the founders of Alpha turned to the regional business support center with a request for state support - the object is socially significant, the building has historical value. Support in the amount of 10 million rubles was provided on the condition that it would be used to develop the film business in the region.

Immediately, Alpha LLC entered into a leasing deal, selling to the lessor (let it be Beta LLC, one of the founders of which was the same regional business support center that provided support to Alpha) property for film exhibition in the amount of 24 million rubles. The lessor transferred this property to the buyer - Gamma LLC, having concluded an agreement for 34 million rubles with the payment of 10 million as a down payment. Nothing unusual, if you do not pay attention to the fact that the founders of Gamma were the same people as Alpha, and the difference between the sale and purchase price exactly repeated the amount of state support provided to film entrepreneurs in the region.

The regional government eventually came to its senses and demanded the money paid as state support back. This led to the bankruptcy of Gamma LLC (the debt written off due to impossibility of collection amounted to 10.07 million rubles), the cessation of the activities of Beta LLC, internal proceedings in the regional government and heated discussions about whether government agencies should even participate in repayment leasing transactions.

Leasebacks constantly attract the attention of tax authorities: a transaction in which there is no obvious economic feasibility can be recognized as a form of tax evasion.

Signs of a fictitious leaseback transaction:

• The seller and the buyer are related to each other (for example, one is a legal entity dependent on the second). In this case, the Federal Tax Service may refuse to pay a VAT refund.
• Payment for the leaseback transaction in one of its parts was carried out by checks, bills and other non-cash methods. This may indicate an attempt to withdraw funds by the seller or buyer.
• At least one of the participants has already been caught in unscrupulous leasing schemes.

Leasing transactions by risk level

Like any other transaction for the transfer of property, leasing has its risks - some of them have already been described above. Based on the degree of risk, there are three types of leasing transactions:

1 Guaranteed

The process of transfer of property is insured by specialized insurance companies or several other companies act as guarantors of the lessee, capable of fully compensating the lessor for the cost of the property in case of violation of the contract.

2 Partially secured

The security deposit, paid by the lessee to the leasing company's account, covers part of the cost of the property. If nothing not specified in the contract happens during the entire leasing period, the funds will be returned to the buyer.

3 Unsecured

Transactions in which the parties do not guarantee each other the fulfillment of their obligations. Nowadays, such relationships between leasing entities are becoming less and less common; the lack of insurance usually “hints” at a dubious or fictitious transaction.

All stages of the leasing transaction

There are usually five stages of selling property on lease. Let's look at each of them.

Stage 1. Analysis of the leasing market, selection of a leasing company.

The leasing market in the Russian Federation is almost identical to the size of the first hundred of the banking sector. You can choose a leasing company based on the conditions offered and the reliability of the parent company. The rating of lessors is maintained, for example, on the portal banki.ru/products/leasing/companies/.

Stage 2. Analysis of the conditions offered by the lessor.

The most important points: initial payment (advance payment), monthly payment, amount of overpayment, term and repayment schedule, conditions for terminating the leasing agreement.

Stage 3. Drawing up a leasing agreement.

To draw up the text of the contract, the lessor usually requires the following documents:

• statement of intention to lease property indicating the parameters;
• financial statements for the last reporting period;
• an account statement of an enterprise or individual entrepreneur (to assess the turnover of a company or entrepreneur);
• copy of the passport of the manager/individual entrepreneur, order of appointment/certificate of registration;
• insurance policy for the leased object.

The leasing company may also require other documents.

Stage 4. Making an advance (down payment).

The down payment amount usually starts from 5% (these are the conditions for most companies involved in operational leasing of vehicles). On average, the advance in the market is 20-30%. After paying the required amount, the buyer receives the property for use.

Stage 5. Use of property during the term of the contract.

Leased property must be used in strict accordance with the terms of the contract. This applies to annual insurance, maintenance (vehicle, equipment) and, of course, timely payment of monthly payments.

Leasing payment options

Regular payments under leasing agreements can have one of three types of schedule:

1 Regressive – the first payments are the largest, then decrease. An analogue of differentiated payments on loans. This scheme allows you to minimize interest payments.

2 Annuity – payments in equal installments. The most “expensive” schedule, because the first payments go almost entirely to repay the lessor’s interest/margin.

3 Seasonal - a schedule adapted to certain types of business (for example, agriculture, where the main profits occur in autumn and winter - during these periods payments increase compared to average, in other seasons they decrease).

Other special payment schedules may also be used, depending on the specifics of the activities of specific companies.

What is more profitable: credit or leasing?

In each specific case, the answer to this question may be different. It depends on both the type of leasing and the property, the conditions of the lessor and the creditor bank and many other aspects. Let’s not forget that leasing is used primarily for business purposes, and lending conditions for legal entities and individual entrepreneurs differ significantly from those for “physicists”.

First, let's look at the comparison based on external features. Let's say we decide to buy a car worth 1 million rubles. Let’s compare the average parameters of the lending and leasing program at the beginning of 2018.

It seems that it is obviously more profitable to take out a loan. However, let's not forget that the interest rate and the amount of overpayment are not always the main factors when choosing a method of acquiring property.

If you put together all the characteristics by which leasing and lending can be correctly compared, you will get something like this table:

Options	Leasing	Lending
Subject	Legal entities and individual entrepreneurs.	Any individual (including individual entrepreneurs) and legal entities
Right to property after the transaction	The object remains the property of the lessor until full payment of its cost by the buyer	The property becomes the property of the client, remaining pledged to the bank
Terms of service	The history of previous leasing transactions and credit history does not matter (except for attempts at fraud)	A positive credit history is required
Payments under the agreement	Advance (down payment) Monthly regular fixed payments Payment of the lessor's interest (margin) It is possible to pay for insurance of the leased item	Monthly payments (loan body + interest) Down payment possible Possible commissions (for account maintenance, etc.) Possible payment of insurance
Depreciation of property	For some types of property, it is possible to use accelerated depreciation For cars over 300,000 rubles and minibuses over 400,000 rubles, a decreasing depreciation coefficient is applied.	The usual procedure for calculating depreciation
Tax payments
VAT	Included in payments under the leasing agreement. The tax can be claimed for refund after the property is redeemed.	Is not a subject to a tax
Property tax	If the property is on the balance sheet of the lessor, the buyer does not pay tax. If the property is on the buyer's balance sheet, the tax is reduced due to accelerated depreciation.	Property purchased on credit immediately becomes the property of the buyer and is subject to full tax.

There are also differences in the purpose of leasing and credit for business purposes. In general they can be expressed as follows:

• Loan funds can be used by an entrepreneur for any purpose, while leasing funds can be used primarily for business development and renewal of fixed assets.
• In the case of a loan, the bank has to control the intended use of the loan. In leasing, control is not required since the property belongs to the lessor.
• When lending to a business, the bank requires guarantees in the form of collateral of property the client already has (which may not exist), as well as insurance. In the case of leasing, the purchased property itself acts as collateral.
• Property purchased with loan funds immediately goes to the balance sheet of the company that took out the loan. After acquiring property under lease, it can either be on the balance sheet of the lessor or go to the balance sheet of the lessee, depending on the terms of the agreement.
• Property purchased with borrowed funds is displayed on the borrower's balance sheet and limits the possibilities for further lending. Leasing property most often passes through the balance sheet of the leasing company, allowing the lessee to easily take out loans.
• Stopping loan payments may also lead to the sale of assets to pay off the debt. Termination of leasing payments only leads to the seizure of the leased property.

From a formal point of view, leasing is similar to renting. In both cases, there is an owner of the property and a person who would like to take possession of this property, but does not immediately have the entire amount to purchase. The owner, in turn, is ready to rent out the property for use at a certain markup.

But along with the similarities between renting and leasing, there are also significant differences.

Options	Rent	Leasing
Formal parameters
Legislative basis	Civil Code of the Russian Federation, Art. 34 Federal laws on certain types of rentals.	Federal Law “On Financial Lease (Leasing)”
Deadlines	Most often short terms with the possibility of extension.	In a significant part of leasing transactions, the contract term is equal to or close to the full depreciation period of the transferred property.
Item	Any non-consumable property that is not limited in circulation.	Non-consumable property that is not limited in circulation and is not a natural object (for example, a land plot)..
Possibility of purchasing the property at the end of the contract	No	There is
Right to property	use
Who chooses the property provided?	Landlord	Lessee
Package of documents	Confirmation of solvency is not required	Documents confirming the existence of the business and solvency
Business scheme
Transaction participants	Landlord, tenant	Seller, lessor, lessee. Banks, insurance companies, guarantor firms, etc. may also participate.
Status of seller (manufacturer) of property	Not involved in the deal	The participant in the transaction enters into an agreement with the lessor.
Responsibility for compliance of property with stated requirements	Landlord bears	It is borne by the lessee, with the exception of the situation when the lessor offers the property for leasing, and he is also looking for a seller.
Risk of accidental loss/damage to property	Landlord bears	Bears the lessee
Property insurance subject	Landlord	Most often the lessee

Leasing and taxes

Income tax

For the lessee, leasing payments are considered other expenses (Article 264, clause 1 of the Tax Code of the Russian Federation). Accordingly, the higher the payment, the less income tax you have to pay. This, according to the legislator, stimulates the development of enterprises and the renewal of fixed assets.

When concluding a leasing agreement, there are two options:

1 If the property is left on the balance sheet of the lessor

In this case, the lessee includes the entire amount of the lease payment as expenses.

For example, if a leasing agreement is concluded for 24 months, and the total amount of payments excluding VAT is 300,000 rubles, then the monthly amount included by the buyer in his expenses will be: 300,000 rubles / 24 months = 12,500 rubles.

2 If the property is placed on the balance sheet of the lessee

The property must be included in one or another depreciation group at the cost of the lessor's costs for the purchase of the leased asset and its pre-sale servicing. Depreciation is calculated depending on the group - the multiplying factor for some types of property can reach 3 (depreciation occurs 3 times faster than usual).

The lessee may include the lease payment minus the amount of depreciation of the property as expenses.

Let's take the same example with property leased for 300,000 rubles, and a monthly payment of 12,500 rubles, and the cost of purchasing the leased item (let it be a computer-controlled machine belonging to the 5th depreciation group) was 200,000 rubles. The minimum period of use of property of the 5th group is 85 months. 200,000 rub. / 85 months * coefficient 3 = 7058 RUR.

This amount will be included in expenses to determine the income tax base as the cost of depreciation. Plus, the costs will take into account part of the leasing payment in the amount of 12,500 – 7,058 = 5,442 rubles. As a result, the deduction will still be the same 12,500 rubles, but if it is not completed correctly, income tax will have to be paid without any deductions.

Value added tax

Under leasing agreements, you can receive a VAT refund from the state (Articles 171, 172 of the Tax Code of the Russian Federation). This will happen if you meet the following conditions:

• The leased property is acquired by the lessee for activities subject to VAT.
• The lessor can confirm that he actually provided the lessee with the property (copies of contracts, other documents at the request of the Federal Tax Service).
• The lessee can confirm that he has reflected the leasing transaction in his accounting.
• There is an invoice for the lease payment provided by the lessor to the buyer.

Property tax

If the property remains on the balance sheet of the lessor, the lessee does not pay tax. When registering property on the balance sheet of the lessee, it is possible to reduce property tax due to accelerated depreciation. Tax on movable property is not charged during the period of validity of the leasing agreement, regardless of whose balance sheet it is located on.

Transport tax

Everything is simple here: this tax is paid by the party that registered the leased vehicle with the State Traffic Safety Inspectorate or Gostekhnadzor, regardless of whose balance sheet the property is on during the period of validity of the leasing agreement.

Frequently asked questions about leasing

Is it possible to close a leasing transaction early?

Most companies provide for early repurchase of the leased asset (this clause must be included in the contract). However, for the lessee this is not the most profitable option: with early payment of the residual value, the repurchase amount is higher and the tax preferences are lower. In addition, a quick buyout leads to increased attention to the transaction from the tax authorities: the Federal Tax Service may cancel the leasing agreement and recognize it as a commodity loan agreement. Then there will be no tax deductions at all.

In what cases does property purchased under lease need to be registered with government agencies?

According to the legislation of the Russian Federation, it is necessary to register the following property and the right to it:

• transport (aviation, sea, road)
• high-risk equipment

In each of these cases, the leased asset is registered by agreement between the lessor and the lessee in the name of one of them. If the leasing agreement is terminated due to the lessee's failure to pay regular payments, the registration authorities will cancel the record of the user of the property.

We are a government agency. Can we lease property?

Yes, state and municipal institutions have the right to act as a lessee. However, for them, the leasing law (Article 9.1) establishes a number of features:

• The lessor independently determines the seller and is responsible for the timely delivery of the property.
• Payments are made only in cash, barter is not allowed.
• Only leased property can be used as collateral.

The lessor delays the delivery of equipment, citing problems with the supplier. He refuses to compensate for lost time, citing the fact that we looked for the supplier ourselves. Is this legal?

The legislation (Article 34 of the Civil Code of the Russian Federation and Article 22 of the Federal Law “On Financial Lease (Leasing)”) directly indicates that the risk of failure by the supplier to fulfill its obligations under the leasing agreement rests with the party that selected the supplier. Most often, the lessee plays this role. The same applies to the non-compliance of the property with the objectives of the project. If you select equipment and it turns out to be unsuitable, you will be responsible for the costs. If a leasing company was looking for a supplier or equipment, it will pay the costs.

What is subleasing?

This term refers to the transfer of the right to use leased property to third parties. Let's say equipment was leased to implement a project. It was completed ahead of schedule. Closing the contract early means incurring losses in terms of tax compensation. A decision is made to sublease the equipment. The former lessee becomes the lessor. In this case, permission to the transaction is required from the original lessor. The new lessee has the same tax preferences as the main lessee. If the main leasing agreement is violated (regular payments are not made), the subleasing agreement is also invalid.

We often hear about fictitious leasing. What it is?

Most often, fictitious leasing is a cover for an installment purchase transaction. Issued in order to receive tax benefits. Since many regions have programs to stimulate economic development, leasing operations there are subsidized by government funds. This also opens up wide scope for fictitious transactions.

In St. Petersburg and the Tyumen region, at the end of 2017, trials were held in high-profile cases of theft under fictitious leasing agreements: in the first case, 18 million rubles went into the pockets of fraudsters, in the second - over 50 million. The scheme was the same: the authorities received a fake leasing agreement (in fact, no property initially existed or was transferred), according to which the attackers received compensation for the down payment or interest rate provided for by regional programs. In the northern capital, an employee of the business support center participated in the scheme, turning a blind eye to the obvious fictitiousness of the contract.

Conclusion

So, leasing is one of the most convenient financial instruments that allows a company to update fixed assets or purchase equipment for the development of new business areas. Its main advantage is that to implement his plans, the entrepreneur does not need to invest large amounts of his own money and jeopardize the financial stability of the company.

The state provides a number of benefits and tax preferences for companies that use leasing schemes for their development. Some particularly enterprising individuals are trying to benefit from this by using fictitious leasing, but for such things you can get a conviction under the article of the Criminal Code of the Russian Federation “Fraud.”

It should be borne in mind that leasing cannot replace a loan in every case: the decision must be preceded by a careful calculation of upcoming expenses and taking into account the accompanying circumstances. However, the prevalence of leasing in the Russian Federation suggests that very often it is the best option for expanding your business.

Video for dessert: 42-year-old extreme sportsman accelerated to 167 km/h on a bicycle

Hello! In this article we will talk about what leasing is and how to use it. In a difficult economic situation, when banks demand exorbitant interest rates on loans, and leasing as a type of transaction is not suitable for a number of reasons, enterprises or individual entrepreneurs are increasingly turning to leasing companies. The goal is to purchase equipment, transport, and real estate on favorable terms. What is leasing for individuals and legal entities? What types of leasing are there? What are the advantages of such a deal? You will learn about all this in this article!

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What is leasing in simple words

Leasing - it's the same lease. (Translated from English "lease" - "rent"). But there are a number of significant differences.

Let's look at the diagram as an example:

An enterprise or entrepreneur does not have enough funds to purchase equipment. You can take out a loan with high interest rates, or you can ask a leasing company to buy the necessary equipment. She, in turn, considers the proposal and evaluates the profit for herself. If approved, the lessor leases the acquired property to the enterprise under a special agreement.

Under the terms of this agreement, the lessee pays the company a certain amount every month (leasing payments), as for rent. After a certain period of time, you can buy out equipment, real estate or a car by paying the residual value.

As can be seen from the example, three parties are involved in the leasing process:

• Recipient of property– a person (individual or legal) to whom the leased asset is leased for use for some time, with the possibility of its full redemption;
• Leasing company– the party purchasing the equipment: real estate, transport, equipment or an entire enterprise.
• Salesman– the party who sells the above valuable property.

Sometimes two parties are enough if the owner of the property acts as a lessor. In many cases, another party will be needed - the insurance company.

Purpose of leasing for an enterprise– expand production, modernize technology, which will lead to increased profits.

The lessor benefits from the difference between the market price of the property and its value after the leasing transaction. A seller of equipment, real estate, vehicles gets the opportunity to quickly sell expensive equipment, real estate, vehicles, etc.

According to the law of the Russian Federation, the following property can be leased (transferred):

• Automobile transport;
• Real estate;
• Equipment;
• Enterprises.

Some objects are prohibited, to which special conditions of use apply by law, for example, military items. Such property cannot be leased:

• Without an individual or serial number (for example, when a vehicle does not have a VIN);
• Withdrawn from circulation;
• Natural resources and land.

Leasing companies also set their own restrictions. They depend on the lessor's policy and on the items themselves. There are also common parameters for all objects that are not offered for leasing:

• Having low liquidity;
• Unreliable manufacturer;
• Used item more than 5-7 years old.

The basic rule is that all leased items are purchased in order to use them in the process of any commercial business.

Types of leasing

In accordance with the terms and economic essence of the contracts, there are three main types of leasing:

• Returnable;
• Operating;
• Financial.

There are also leasing of real estate, equipment, vehicles and others.

According to the degree of risk, leasing transactions are divided into three types:

1. Guaranteed– risks are distributed between several parties - guarantors of the transaction;
2. Unsecured– the lessee does not provide any guarantees for the fulfillment of its obligations;
3. Partially secured– having an insurance contract.

Description of the main types of leasing

Leaseback

This is a special type of transaction. In this case, the lessee and the seller of the property are one person. The company enters into an agreement with a leasing company to transfer ownership of its property for a certain amount and immediately acts as a lessee. In this case, the production process does not stop - the equipment is not removed. The company received a large sum, which it can immediately use to increase profits or for other needs. At the same time, it pays small payments every month. This transaction looks like a loan secured by property, but there is no interest to the bank.

Leaseback is beneficial for enterprises that need additional funds for development. After all, it is possible to receive money from the leasing company and the equipment will not be lost, and the production process will continue.

But there is a significant drawback. Leaseback transactions attract special attention from tax authorities. They may consider such agreements one of the ways to evade taxes. But if the transaction is carried out in accordance with all financial and legal rules, and the agreement is justified by economic feasibility, then the fiscal authorities will not have grounds for a fine.

The tax service compares leasing conditions and possible loans. If it turns out that a loan is more profitable for the entrepreneur, then the Federal Tax Service suspects tax evasion.

Here are the terms of transactions that attract the attention of fiscal authorities:

• The leaseback agreement was signed by two parties dependent on each other. According to the law, this is possible, but in practice the Federal Tax Service does not pay VAT refunds precisely for this reason;
• The parties to the transaction used bills, checks and other non-cash methods when making payments;
• One of the parties to the agreement has previously been found to have paid taxes in bad faith.

Operational leasing

This is a transaction in which the period of use of the property is much longer than the term of the contract. The rate is higher than in the case of financial leasing. In fact, a parallel can be drawn with ordinary rent.

The leasing company bears full responsibility for the subject of the contract. In other words, repairs, maintenance and insurance. The recipient of the leased item does not bear any responsibility. All risks associated with the destruction or loss of the leased asset fall on the shoulders of the company.

The recipient of the leased item may terminate the contract with the company if the item is not suitable for use.

Upon expiration of the operational leasing agreement, the lessee can:

• Change an object to another;
• Leave the property to the lessor;
• Conclude another agreement;
• Buy property and become its owner.

Operational leasing has a positive effect on the dynamics of the production process. After all, the equipment is being updated.

The concept of financial leasing

financial leasing – a way to raise funds for specific purposes. The terms of use of the leased asset are equal to the terms of the contract. By the end date of the agreement, the value of the property is close to zero. More often than not, the lessee wants to take ownership of such property, especially since by the end of the lease it is worth practically nothing.

Main features and conditions of financial leasing:

• The lessor purchases property specifically for leasing, and not for its own use;
• The buyer selects the property and the seller;
• The seller is aware of the existence of a leasing agreement, but the subject of the agreement is delivered to the buyer, and he accepts it for operation;
• The lessee forwards all claims regarding the quality of equipment, machinery, and vehicles to the seller, bypassing the lessor;
• In case of damage to the leased item, it is transferred to the buyer after signing the acceptance certificate for commissioning.

Stages of concluding a leasing transaction

Despite the fact that the process of obtaining an object for leasing is considered a simple transaction, you need to carefully consider all stages of its implementation.
Key steps towards a successful leasing transaction:

1. Choosing a leasing company . It is better to give preference to large organizations that are subsidiaries of well-known financial institutions. We recommend using Europlan on favorable leasing terms.

2. Study of all proposed terms of the contract . Before signing the contract, it is necessary to find out: the initial and monthly payment amount, the payment schedule, the conditions under which the transaction is terminated, as well as the characteristics of the transferred property.

3. Drawing up a contract . Before this, the leasing company may require the following documents from the client:

• statement of intention to lease a certain object;
• bank statement about the company's recent turnover;
• financial statements for the last 4 months;
• copies of documents of the business manager;
• agreement with the supplier;
• documents confirming insurance of the leased object.

The lessor may require other documents and papers - this depends on the type of transaction and the company itself.

4. Then comes the down payment . After this operation, the enterprise receives the object of the contract for use.

- one of the profitable ways that allows an enterprise to increase production without high costs, build new workshops, and update technology through the purchase of technical innovations.

You can purchase everything necessary for the operational operation of the office, computer equipment. In agriculture, buy new equipment for processing crops, collecting milk, cutting meat. In the restaurant business, purchase the necessary equipment for trading. Such leasing is also beneficial for the woodworking, gas, and oil refining industries.

The main advantages of using equipment leasing :

• Allows an enterprise or individual entrepreneur to develop, even if they have part of the money to purchase new equipment;
• Payments are evenly distributed over months according to a personal schedule, there is no need to pay the entire cost at once;
• Leased items are immediately available for use, and they can participate in the production process after signing the contract;
• Monthly payments are covered by the profit that will come from the use of new equipment and workshops;
• Payments are classified as cost, which leads to a decrease in the income tax base;
• Savings by reducing property tax payments. This is due to accelerated depreciation. After the contract term, it turns out that the leased item is worth almost nothing.

Car leasing

Both legal entities and individuals can buy a car on lease. This is a relatively new type of transaction for the Russian population, but in recent years it has been rapidly progressing in its distribution.

Let’s take a closer look at the question of what leasing is for individuals. In fact, any citizen of the Russian Federation can purchase a car, as if renting it. One difference is that you can become the owner of the vehicle at the end of the contract.

The motorist gets the opportunity to use vehicles after completing the transaction and making the down payment. Such procedures can be executed not only by special leasing companies, but also by banks and car dealerships.

What is the procedure for leasing a car?

1. The client provides identification and driver documents, fills out the necessary documents;
2. An agreement is concluded between the parties: the future car owner and the lessor. The document gives the right to use transport with its subsequent purchase. A purchase and sale agreement is also concluded between the seller (transport supplier) and the company (bank) that has assumed the responsibilities of the lessor;
3. The recipient of the rental car pays the first 20-30% contribution of the total cost of the contract;
4. It is mandatory to take out insurance for the leased item (car) in two packages: OSAGO and CASCO;
5. The leasing company takes care of the costs and hassle of registering the car with the traffic police and carrying out maintenance;
6. After all the above points, the transport passes into the use of the lessee, but not into ownership. The owner is a leasing company, which can be a car dealer, bank or other financial institution;
7. The user of the car pays monthly amounts, and upon expiration of the contract, the vehicle can be taken over. You can also exchange it for a new car.

Pros of car leasing

1. You can purchase not only a passenger car, but also trucks and special equipment;
2. It doesn’t matter whether the car was used or whether the new car was leased from a dealership or from a private person;
3. Minimum package of documents for completing a leasing transaction;
4. The level of requirements for the client is lower than when applying for a loan;
5. The lease term is up to 5 years, after this period the client can become the owner, for this the remaining amount must be paid;
6. You can return the leased item – a car – ahead of schedule;
7. You can use the car immediately after the transaction.

Cons of car leasing

1. Interest rates for car leasing agreements are higher than for loans, especially for mid-price vehicles;
2. If the leasing payment schedule is violated, the car is confiscated;
3. The car is not property and cannot be rented out or used as collateral without the consent of the official owner - the leasing company;
4. For periodic inspection, you must provide the car to the leasing company.

Before deciding on how to purchase a car, you need to carefully study all the factors, weigh all the pros and cons, and find out all the lucrative offers from banks.

Real estate leasing is something between rent and mortgage. The essence of the process is the same as with other types of leasing. The company buys the property that the client has chosen. Then, the leasing organization rents out this living space to him. The client is obliged to pay monthly amounts for using the lease.

Real estate leasing for individuals

Apartment leasing for the ordinary population has not yet become widespread. Maybe the fact is that people want to see real estate in their possession immediately, and not in 15-20 years. Psychologically, it is much calmer when the apartment becomes property immediately, as, for example, with a mortgage.

When registering real estate on credit, the buyer gets the opportunity to use and own square meters; the right to dispose of it will come after the last payment. When leasing, a person has only one right - to use the living space. All other rights will come into force after the end of the contract period and payment of the residual value.

Purchasing a house or apartment on lease has a number of other disadvantages V:

• Most often, a mortgage agreement is cheaper than a leasing agreement;
• Two transactions are drawn up: one of them is for the purchase and sale between the leasing company and the seller, the second is between the citizen and the leasing company. As a result, more funds are spent on registration. These costs most often fall on the person wishing to purchase an apartment.

What are the benefits of leasing real estate to individuals?

It's all about the reliability of the deal for the parties to the contract. With a mortgage, there is a risk for the bank that the client will not fulfill all obligations. Then you will have to take additional measures, which entail costs for the financial institution. Whereas the leasing company is already the owner of the living space and does not lose anything in the event of the client’s insolvency. Therefore, she is more tolerant of late payments and considers all options for payments that an individual offers her.

Leasing companies do not care about the credit history of their client. Therefore, this type of apartment purchase is suitable for citizens who have been denied a bank loan.

Purchasing housing on lease is also attractive for those people who do not want to own their property and pay taxes on it. For example, this option can be considered if a married couple is in an unstable relationship and one of the parties is afraid of losing part of the property during division.

There are many scammers among real estate leasing companies, so the average citizen should carefully choose an organization. It is best to pay attention to leasing companies that are subsidiaries of a large bank.

Real estate leasing for legal entities

The situation is different with the leasing of commercial real estate for persons engaged in entrepreneurial and financial activities. This type of deal has been around for a long time and is in demand. This is primarily due to favorable taxation schemes.

Not putting real estate on the balance sheet is always beneficial for any enterprise, in particular for the following reasons:

• You can count on a refund of value added tax;
• Accounting records leasing payments as expenses, thereby not underestimating profits and reducing the corresponding tax;
• There is no need to pay property tax at all - the real estate is not listed on the balance sheet of the enterprise and does not belong to it.

That is why purchasing square meters through leasing is much more attractive for an enterprise than a commercial mortgage agreement.

Leasing or credit – which is more profitable?

For clarity, we present a comparative table with the same comparative characteristics for loans and leasing.

Comparison of loans and leasing

Features for comparison	Leasing	Credit
Who can use	legal entity, individual engaged in commercial activities (IP)	any natural or legal person
Who is the owner	During the term of the contract, the owner is the lessor; at any time he can withdraw the property	after the transaction, the owner of the acquired property is immediately the enterprise or individual entrepreneur
Payments	- monthly payments: — payment of the leasing company’s margin; — insurance premiums; — tax on leased property; — advance payment is 20-30% of the cost	— loan payments (interest for using the loan, insurance); — possible fees for maintaining a loan account and assessing property; — there may be no down payment
Past history of property acquisitions	it is not necessary to have any (positive, negative) history of leasing property	having a positive credit history
Depreciation	the possibility of using accelerated depreciation (except for cars costing more than 300 thousand rubles and minibuses costing more than 400 thousand rubles - a coefficient that reduces depreciation is applied to them)	normal depreciation scheme
Taxes
VAT	VAT is included in lease payments	money received as credit is not subject to VAT. The tax presented by the supplier can be deducted by the lessee after purchasing the property.
Property tax	the property is on the balance sheet of the leasing company and therefore cannot be subject to property tax. if the property is on the balance sheet of the enterprise, then property tax is reduced due to rapid depreciation provided for leasing	the property is immediately the property of the enterprise, which means it is taxed

The advantage of leasing over a loan is not always obvious. Each specific case must be considered separately from all sides. You cannot do without legal and financial assistance.

Using a specific example, let’s look at leasing a car of a well-known brand. The conditions offer payments 30% less than for a loan. But there is one more point - in order to receive such a favorable offer after the contract period, the car must be returned to the seller. If you buy it out in full, the overpayment will be higher than for the intended loan.

Taxes and depreciation

When determining the income tax base, the enterprise (lessee) classifies leasing payments as expenses. This is described in detail in Article 264 of the Tax Code in paragraph 1 of subparagraph 10.

Under the terms of the agreement, it is possible to include the property on the balance sheet of the enterprise, then the amount of depreciation is deducted from the amount for expenses of leasing payments.

When the property is not on the balance sheet of the enterprise, then it is taken into account by the lessor. In this case, the cost of the subject of the contract is deducted from the amount of all expenses for leasing payments. By law, the income tax base does not take into account expenses for the acquisition of property subject to depreciation. This is the redemption value of the leased asset, and it is written off gradually using depreciation.

There are cases when the contract does not clearly state the amount of the redemption price. In this case, specialists from the Ministry of Finance propose to include all amounts of leasing payments in the initial cost. After ownership rights are transferred to the enterprise, accrue payments as expenses through depreciation.

An enterprise or individual entrepreneur can challenge this position, because there is no mention of the redemption price in the law and the Tax Code. Article 264 of the Tax Code states that all leasing payments are classified as other expenses. The exception is depreciation accrued by the enterprise.

There is also a special procedure for calculating the cost of depreciable property during leasing operations. This is specified in Article NK 257. The initial cost of property includes the costs of delivery, construction, acquisition, and bringing it to a state suitable for use. This means that for the parties to the leasing agreement the initial cost of the leased asset will not differ.

It turns out that if the lessor fully pays off the cost of the property through depreciation, then by the end of the contract he transfers the subject of the contract to the enterprise with zero residual value.

If the property is not fully depreciated, then it is transferred to the other party to the contract at the value that remains after depreciation has been calculated. This part will be written off as expenses of the enterprise through depreciation. Therefore, if the lessee accumulates the redemption value, he will not be able to write it off, since depreciation is not charged on it.

It turns out that it is more profitable not to divide the lease payment, but to include it in full as other expenses.

Depreciation

Accelerated depreciation rates apply to property purchased under lease. In this case, the tax accounting policy of the enterprise must indicate the method of calculating depreciation.

Leasing payments contain VAT, so in the future the enterprise can offset it from the budget in accordance with Articles 171-172 of the Tax Code.

When purchasing on credit, the cost of VAT will be less than in a leasing transaction. This happens because when leasing, the base for calculating VAT includes not only the cost of the property, but also the price for the services of the lessor.

Renting and leasing - similarities and differences

Leasing is similar to renting only from the outside. Leasing is often called financial lease. Essentially, in both cases, the main parties to the transaction are two clients. One person needs a certain expensive item, but does not have the entire amount to buy it. Another client has the funds to purchase the item and can rent it out at a premium to make a profit.

However, this is only the external side. In fact, these two operations have many differences.

The main difference is the ability to take into account equipment during leasing, both on the balance sheet of the leasing company and on the balance sheet of the enterprise. When renting an item, it appears in the off-balance sheet accounts of the recipient of the item.

Differences and similarities between leasing and renting

Features for comparison	Leasing	Rent
Deadlines	usually a long-term deal. The term is equal to the useful use of the leased asset	provision of a leased item for a short period that is not related to its useful life
Possibility to use land plots	not provided	Maybe
Redemption of the item at the end of the contract	Can	it is forbidden
Type of property rights	use
Legal regulation	Chapter 34 of the Civil Code – “Rent”; Article 2 of the Federal Law	Chapter 34 Civil Code
Liability for the risk of accidental breakage, destruction or damage to the subject of the transaction	direct responsibility on the lessee	the tenant is not responsible
Providing documents confirming solvency	a comprehensive assessment of the enterprise for solvency is carried out	not required, only account details are needed
Who chooses the property	lessee (enterprise)	landlord
Subject of the transaction and its quality	implies new equipment	the object may be a property that has been rented several times, defects and malfunctions cannot be excluded

Lease payment schedules

Regular payments on leased property may be regressive, seasonal, annuity.

Regressive payments mean that the monthly payment decreases with each subsequent payment. The same amount (fixed) is meant by annuity payments. As the name suggests, seasonal payments depend on the time of year. Many businesses make a profit during a certain season, so the leasing company may consider special payment terms for them.

What is subleasing

The following cases often arise: the lessee no longer needs the received property or cannot use it. And then thoughts arise: is it possible to rent out the leased item? This will be considered subleasing.

This type of transaction is legalized and a corresponding subleasing agreement is drawn up. Its participants are the new acquirer of the property - the sublessee, the former lessee who no longer needs the subject of the agreement.

The lessor is an organization that owns the property and writes a written consent or prohibition on the transaction.

Conclusion

Now you know what leasing is, types of leasing and how to lease a car, equipment, etc. If you have questions, ask in the comments below. And also read other articles on our website!

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 leasing 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.

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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 included 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 has been 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.

Today, a banking operation called “leasing” is becoming increasingly widespread. What is "leasing"? How is it better and why is it worse than a regular loan? How is leasing beneficial for a bank or credit institution (lessor), and why is it beneficial for the enterprise (client). How accessible is it and who is it intended for? What exactly can you get by leasing? How does a leasing transaction take place? I will try to answer these and some other questions relatively briefly in this article.

Perhaps we should start with a definition. So, leasing is one of the forms of credit, in which the property is transferred for a long-term lease with a subsequent right of purchase and return. If we adhere to greater rigor in concepts, then the following definition of leasing should be mentioned. Leasing is a set of economic and legal relations, according to which the lessor undertakes to acquire ownership of the property specified by the lessee from a seller specified by him and to provide the lessee with this property for a fee for temporary possession and use with the right of subsequent redemption. The leasing agreement may provide that the choice of the seller and the purchased property is made by the lessor. Now we can identify the main participants in the leasing operation. This:

• Lessee(The client is usually a legal entity)
• Lessor(Commercial bank or other credit non-banking organization, etc.)
• Provider(Equipment seller: industrial enterprise, real estate company, auto manufacturer or dealer, etc.)
• Insurer(Basically, any insurance company)

Let's consider the role and functions of each of them.

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. Actually, it all begins with him.

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 item. As noted above, a commercial bank, a non-bank credit organization, or a leasing company can act as a lessor. In principle, the lessor can be a legal entity or an individual.

Supplier or seller- 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. Any of the leasing entities can be a resident of the Russian Federation or a non-resident of the Russian Federation.

Insurer is an insurance company that is usually a partner of the lessor or lessee. It participates in a leasing transaction, insuring property, transport and other types of risks associated with the leased asset and/or the leasing transaction. The function of the insurer in a leasing operation is to draw up an insurance contract when concluding a transaction between the lessee and the lessor. Unlike other participants, it is not required when concluding a leasing transaction. It is used only in certain schemes when transaction insurance is required.

So, some commercial banks carry out operations called leasing. Leasing assumes that the bank (lessor) purchases equipment, which it leases to its client with a subsequent right to purchase the leased equipment. Today, this area of ​​non-traditional banking operations is developing very actively; there are hundreds of credit institutions that provide their clients - commercial organizations - with leasing services for this or that equipment. (As a rule, leasing is more often used by legal entities). It should be noted that now one can often encounter a situation where leasing is separated from the total mass of various banking operations into a separate division.

Credit organizations most often provide financial leasing services through specially created one hundred percent “subsidiaries” - leasing companies, therefore often the first part of the name of the leasing company coincides with the name of the founding credit organization. (Examples: PromSvyazLeasing, Avangard-leasing; Petroconsult Leasing company; KMB-leasing; Agroprom Leasing, etc.) Leasing contains elements of credit, rental and delivery. Today we can say that leasing is no longer just one of the banking operations, but a separate specialized type of business. (It is for this reason that separate leasing companies are often created, since sometimes for a number of reasons it is simply not profitable for banks to carry out leasing operations on their own).

Question: What can you get on lease?

Answer: any movable and immovable property that can be used for business activities. For example, buildings, special equipment, equipment, transport, aircraft, communications. However, it is quite difficult to lease real estate, since the minimum depreciation period is 10-12 years, while financial lease usually does not exceed 5-6 years. Car leasing is especially popular today: often they are even registered to the company, but are actually given to employees for use. 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. (For example, weapons).

Many firms and enterprises at a certain stage of their development, be it the opening (or creation) of a new enterprise, expansion, or technological update of an existing one, come to the conclusion that it is more profitable for them to purchase certain equipment on credit (leasing), so that, gradually by paying the shares determined by the bank, redeem it completely. This allows you to reduce the costs of the enterprise, but at the same time purchase the necessary equipment in the shortest possible time.

How does a leasing transaction work? Let's assume that a certain company has already chosen a suitable organization that provides leasing services. Then, as a rule, everything begins with a regular telephone call from a potential lessee to the leasing company. Then there is a direct meeting between representatives of the leasing company (lessor) with representatives of the lessee company or the lessee himself. During the meeting, the parties receive information about each other and also discuss the nuances of the proposed transaction. In the event that both parties to this meeting are ready to begin implementing the project, the company will be asked to fill out a leasing application, after which it will also require a certain list of documents necessary for consideration of the application. (). After which a thorough analysis of the information provided is carried out. Typically, processing of such information takes about 10 days. Sometimes a little less, sometimes a little more, depending on specific conditions. After the credit institution (lessor) makes a positive decision on the company’s application, a stage occurs at which all necessary agreements are drawn up and signed between the lessor, lessee, supplier (seller) and, if required, by the insurer. After concluding an appropriate agreement between the lessor and the lessee (company), the lessor directly acquires ownership of the leased item specified by the client (company) from the supplier (seller), also specified by the client. The purchase and sale agreement for the leased asset, concluded between the lessor and the supplier (seller), fixes the obligations of the supplier (seller) to supply equipment (the leased asset) within a certain time frame, its cost and payment procedure, quality and completeness, delivery and installation obligations, if not otherwise stated. Next, the leased item is delivered either directly to the client or first to the lessor, depending on the agreement. In advance, if required, it is possible to insure it against a full range of property risks. From the moment the equipment (the leased item) is transferred to the client, he is responsible for the safety, proper storage conditions and maintenance of the equipment in working order. (Unless otherwise stated). During the term of the leasing agreement, ownership of the leased asset remains with the lessor, and the client company uses the equipment for its own purposes, paying monthly (or quarterly) payments established by the leasing agreement. In case of failure to make payments in accordance with the leasing payment schedule specified in the contract, the lessor has the right to withdraw the equipment owned by him and sell it on the secondary market. If the client makes lease payments in accordance with the schedule and pays the contract amount in full, ownership of the equipment passes to him. All income and profits received by the client during the use of the equipment are the property of the client.

As it turns out, everything is not so complicated. And now, after all the main theoretical issues have been considered, I will move on to describe the most important advantages and disadvantages of leasing, while simultaneously comparing it with a loan.

• Leasing allows the lessee company to save on taxes. For example, Chapter 25 of the Tax Code of the Russian Federation states that payments under leasing agreements fully reduce the tax base for income tax. This means that the state gives domestic enterprises the legal opportunity, through leasing, to direct their resources to expand production and introduce advanced technologies, and not to pay taxes. By the way, the leasing company also has the opportunity to save on taxes.
• Leasing interest rates, which according to various estimates range from 9-15.5% in foreign currency and 16-21% in rubles, can often be 2-4% higher than the rates when obtaining a loan. After all, as a rule, the leasing company (if it is separate) itself receives loans from the bank, which means it lays down a certain margin. However, even despite this, leasing operations turn out to be 15-25% more profitable than a loan. (The total tax savings, technical capabilities of the lessor and other advantages, in general, easily pay for all costs of margin, etc.) (The scheme discussed in this paragraph is presented below. It is quite common).
• Leasing gives a company the opportunity to update technological equipment without any special complications, and therefore restore and increase the company’s potential. (About 70% of all equipment in Russia is worn out, both physically and morally. Many promising enterprises cannot realize their full potential, working on outdated equipment that is unable to produce products that meet the requirements of the modern market. Leasing is an effective way to replace worn-out equipment, accessible to enterprises in the real sector of the economy). This also allows the lessee company to fully comply with all modern requirements, both in terms of equipment and the quality of the products produced (or services provided). Having modern equipment, the lessee company has the opportunity to plan its business for several years in advance, reducing the main risks.
• Minimization of risks due to the limited liability of the lessee. At the same time, the leasing company reduces the risk (compared to a loan), because has an indisputable right to ownership of the property, and accordingly, in the event of bankruptcy for any reason, the lessee company (client) has the priority right to payments. (Refunds)
• Thanks to minimizing the risks of the leasing business, it is often much easier for a client to enter into a financial lease agreement than to obtain a “long-term” loan. This is especially true for medium and small businesses, for which banks provide loans very carefully. Some companies sometimes do not require any additional guarantees from the client, since the equipment itself (the leased item) is the collateral.
• A leasing agreement is more flexible than a loan agreement: a loan always involves limited terms and amounts of repayment. When leasing, the lessee company has the opportunity to work out a convenient and flexible financing scheme with the lessor.

That, in principle, is all that any company (and possibly an individual) needs to know as a potential lessee. Often, leasing actually turns out to be much more profitable than a loan, both for the lessee and for the lessor.