Leasing has received the greatest impact since the reform, and in five years it will be expensive

Leasing financially spent a great deal of money through reform taxes. It is not just about cars, a significant number of assets and leasing financed real estate and machinery. The weak weight of the set of unfavorable changes abolishes the limit of tax expenditure on passenger cars in the amount of 1.5 million crowns.

So far, leasing has hid one big tax advantage compared to the one paid for cash or on If the certain conditions were met, the entrepreneur of the people could get the cost of the entire purchase price of the subject of financial lease faster than in the ordinary depreciation. This, of course, led many financially strong entrepreneurs to prefer leasing before buying for cash, even though they had free funds.

The minimum lease term must be at least as long as the depreciation period of the asset

At the same time, the first right is that the lease period with subsequent purchase (financial leasing) must be less than 20 percent of the depreciation period (at least three years). In the case of real estate for the current valid first salary, the condition of at least eight years of financial leasing.

The current reform states the stated conditions so that the minimum period of financial lease must last at least as the depreciation period according to the plunch of depreciation groups. In the case of a financial lease of real estate, the term of the financial lease is then extended, regardless of the depreciation group of the real estate lease, to 30 years. Let us best demonstrate such a change in the uvdjc terms and conditions table from 1 January 2008.

Minimum term of financial lease agreements from 1 January 2008
Moved vci
13 years3 years
25 let5 let
310 let10 let
420 let20 let

Real estate vci

430 let20 let
530 let30 let
630 let50 let

The fact that in the table of depreciation errors group 1a, which concerned passenger cars, certainly did not escape attention. The depreciation period in these groups lasted three years and the activities of the reform taxes disappear.

We will have to depreciate a car built from the new year for five years (when buying for cash or back it is in the type of depreciation groups). If we decide on financial leasing, then it must be again at least five years.

From the point of view of the entrepreneur, therefore, the end of this lease for a car is, when it was possible to get several installments into tax payments during the three years of the lease. Now the entrepreneur gets the same subject of leasing to the tax for the first five years.

As far as passenger cars are concerned, it is possible to expect the transfer of entrepreneurs not only to other forms of financing (for example, vru), but also to operating leasing. The extended depreciation period of passenger cars did not have a negative effect on operating leases. This product can be characterized as a usual subtle relationship, where the object of the property from the point of view of ownership does not pass to the lessee. Regular interest in the tax on the tax expense and the value added tax is applied in the tax as input tax (the tax liability of the lessee will be reduced).

Compared to the level of financial loss due to legislative changes in leasing magic, it cannot be used to shorten the time of projecting the purchase price of an item into costs (see the example of this lease by a few paragraphs). Leasing is probably likely to be chosen by companies with a strong cash flow and a high tax liability, which in a short time did not reduce the tax base even when buying in cash.

One percent of it is innocent – only for expensive leases
I consider the new provision concerning one percent of the rent to be based on a financial leasing contract to be relatively curious, which will be innocuous for the taxpayer.

Here, the salary of the condition that only expensive subjects are established applies. It will therefore not affect passenger cars, because a year of a five-year lease on a passenger car does not cost one million crowns. On the other hand, for entrepreneurs who invest in technology and, for example, trucks, through leasing, they may find a finely one million quiet hell. In such a case, the state is punished with the first one percent of the tax on innocent costs.

Railway passenger cars – the amendment reaches the limit of 1.5 million

The only potable novelty that the entrepreneur will probably appreciate is the abolition of the limit for passenger cars. At the same time, the first law works with a limit of 1.5 million, which is the limit value for the application of the car’s purchase price to taxable costs. So far, more than 1.5 million cars have been depreciated and only as if they cost 1.5 million. Since 2008, this limited no longer applies to it, lovers of expensive cars come to the world, or take into account the taxes.

Negative changes in leasing financing will affect most small businesses
Leasing is generally considered to be the most important tax of the reform compared to other financial products. The combination of tax changes will lead entrepreneurs to find suitable resources elsewhere. The worst blows are these changes, especially for small or early entrepreneurs. They usually have neither the funds nor the solid history to get a bank account. Above all, tax reform will be a difficult digestible bite for them.

Heath IM Provement