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Why operational leasing? > What is operational leasing? > Legal aspects > Operational and financial leasing versus CIT

Operational and financial leasing versus CIT

Operational leasing and CIT

Pursuant to the Art. 17b. section 1

Fees set in the leasing contract [including exploitation fees] constitute the lessor’s income and the total tax deductible revenue of the lessee, if the contract fulfils the following conditions:

1)   The contract is concluded for a specified period. The contract period exceeds 40% of the tax depreciation period (5 years) - so the contract must be concluded for at least 2 years.

2)   Total fees exceed or amount to the primary value of the leasing subject.

Vehicles are allowed for depreciation by the leasing company, so they are the lessor’s expense.


Financial leasing and CIT

Pursuant to the clause 17f.

The leasing fees interests are the only tax deductible revenue of the lessee (and the revenue of the lessor) if:
1)    The contract is concluded for a specified time.
2)    Total fees exceed or amount to the primary value of the leasing subject.
3)    The contract indicates that the capital allowance will be performed by the lessee – it is his expense.