Leasing

Leasing is a type of investment activity where an asset is provided to natural persons or legal entities in return for payment of a fee and for a period and upon terms specified in a leasing contract with the lessee’s right to repurchase the asset (Federal Law of RF “On Leasing”). More simply, the leasing is the asset tenancy with the right of repurchase.

Leasing represents the following procedures:

• a leasing company purchases equipment selected by an enterprise;
• the equipment is transferred to the enterprise (lessee);
• the enterprise operates the equipment and forwards scheduled leasing payments included in asset cost of production and therefore decreases the taxable base;
• transfer of the title (to specify in the Contract) to the equipment upon completion of all leasing payments.