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Accounting and fiscal advantages

Lease-financing offers a number of accounting and fiscal advantages not available with conventional financing solutions.

VAT

VAT on the equipment is paid by BNP Paribas Lease Group at the time of purchase. The lessee pays VAT only on invoiced repayments.

DEDUCTIBILITY FROM RESULTS

Repayments, whether for financial or operating leases, constitute financial expenses, which, as such, are deducted from company results and can represent a non-negligible reduction on taxes on profits.

OFF BALANCE SHEET(1)

The lessee company leases the equipment or asset. It is not the owner. Consequently the equipment does not appear among the company’s assets on the balance sheet. In the case of financial leases, it is nonetheless necessary to specify the amount of repayments outstanding in an appendix to the balance sheet.

TRADE TAX

As a general rule(2), for lessees subject to trade or business tax, leased equipment is taken into account when the tax is calculated, as follows:
  • the original value of the equipment in the case of a financial lease,
  • the total repayments made during the financial year, if need be, up to a ceiling, in the case of an operating lease.
(1) excluding IFRS effect
(2) excluding exemptions, dispensations and other particular cases
Far more than financing
BNP Paribas Lease Group, far more than financing
A comprehensive offer with or without related services :
  • from financing products to long-term full service leasing,
  • including financial and operating leases,
  • flexible leasing solutions,
  • and for the manufacturers and their sales networks,
  • the Wholesale Finance.
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BNP PARIBAS LEASE GROUP France : financement aux entreprises & professionnels – crédit bail (leasing) - location financière
location opérationnelle – LLD – Wholesale Finance – floor-plan – gestion financière des réseaux.