Leasing or loan: what is more profitable for business
Leasing and loan payments at the same rate are almost equal - the difference is made by taxes, advance and contract terms. Let’s take the example of numbers for the OSN and USN.
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The company needs a car or a machine, and there is no free money for the full amount. Usually choose between two ways: to take the property on lease or buy it on credit. At the same rate, monthly payments are almost the same - the difference appears in taxes, in how much money is needed immediately, and in who owns the property until the end of payments.
How leasing and credit are arranged
Prix leasing The leasing company buys the property from the seller and transfers it to you for use. You pay an advance and monthly payments, and at the end – a ransom payment, after which the property becomes yours. Before the redemption, the owner is a leasing company (Law No. 164-FZ “On Financial Lease (Leasing)”).
Prix credit The bank gives money, you buy the property yourself and immediately become the owner. The bank usually takes the purchase as collateral and asks for a down payment.
| leasing | Credit | |
|---|---|---|
| The owner until the end of payments | leasing company | You (property pledged) |
| How much to pay? | Advance, often 10-30% | Down payment or pledge |
| Deduction of VAT on DOS | Parts, from each payment | Right away. |
| Income tax expenses | Payments - for the term of the contract | Interest and depreciation |
| If you stopped paying. | Company has the right to take property | The bank collects debt and collateral |
How much it costs: higher cost and rate
The bank calls the rate, the leasing company - more often riseHow much you will overpay in excess of the property value. The increase in price per year is an overpayment in percentage divided by the term in years.
The rise in price per year does not equal the rate and is always lower than it: the debt is extinguished gradually, and interest is accrued on a decreasing balance. In the example below, the increase in price of 8% per year corresponds to the rate of 18% per annum.
Example. Car for 6 100 000 rubles. with VAT, advance 20% (1 220 000 rubles), term of 36 months, funding rate of 18% per annum, redemption payment of 1,200 rubles:
- monthly payment - 176 398.31 rubles;
- the amount of the contract - 7 571 539.06 rubles;
- increase in price - 24.12 % for the entire period, or 8.04 % per year.
If only the payment is indicated in the offer of the leasing company, you can find a rate on it: so the proposals of different companies are convenient to compare with each other and with a loan. This makes leasing calculator in the "Payment from offer" mode.
Taxes: Where does the difference come from
Let’s take the same purchase on credit: our 1,220,000 rubles. - as an advance, the remaining 4,880,000 rubles - a loan under the same 18% for 36 months. The payment on the loan is 176,423.69 rubles, almost like a lease.
On OSN
VAT. On the credit, VAT from the value of the property - 1 100 000 rubles. - is deducted immediately after taking into account. For leasing, VAT is in each payment and is accepted for deduction in parts, on the invoices of the leasing company. But for leasing VAT is more - 1,365,359.50 rubles: the tax is also charged on the rise in price.
Income tax. If the property is on the balance sheet of the leasing company, leasing payments without VAT - other expenses (subparagraph 10 of paragraph 1 of Article 264 of the Tax Code). The entire value of the property goes into expenses for three years of the contract. A car purchased on credit is depreciated by depreciation for the useful life - for a passenger car usually from 3 to 5 years. Interest on the loan also goes into expenses.
| Purchase for 6 100 000 rubles, OSN | leasing | Credit |
|---|---|---|
| Total payments | 7,571,539,06 | 7 571 252.85 |
| VAT deductible | 1 365 359.50 | 1 100,000. |
| Savings on income tax for 3 years | 1 551 298.99 | 1 117 813,21 |
| Tax-adjusted | 4,654,880.57 | 5 353,439.64 |
For the term of the contract, leasing is cheaper by 698 559.07 rubles. But part of this difference is time, not money: on a loan, another 2,000,000 rubles of depreciation will be written off after three years, and the savings on the tax of 500,000 rubles will come later. The final advantage of leasing in this example is about 200,000 rubles and a faster tax reduction.
On USN.
On the USN “income minus expenses” leasing payments together with VAT are expenses (subparagraph 4 of paragraph 1 of Article 346.16 of the Tax Code), and when buying, the cost of property and interest go into expenses. At the same rate, the result is almost equal: in the example, the difference is 243 rubles. The choice is decided by the rate, advance and conditions, not taxes.
On the USN “income” the tax does not reduce – you need to compare only payments.
When leasing is best
- You are on the OSN and want to reduce income tax faster: the cost goes into expenses for the term of the contract.
- Few of their money and a short credit history: leasing companies approve more willingly, because the property remains with them.
- The typical property - cars, special equipment, equipment - and the leasing company has discounts from the manufacturer.
When is the best loan
- The bank gives a rate noticeably lower than the leasing company: the difference in the rate quickly eats up the tax gain.
- You are on the USN: there is almost no tax advantage in leasing.
- You need to immediately dispose of the property: sell, convert, lease.
- It is important to deduct VAT immediately, not in parts.
How to compare your options
- Take from the leasing company a schedule or at least a monthly payment, advance, term and redemption.
- Enter them in leasing calculator, select "Payment from offer" and your tax regime.
- In the Leasing or Credit block, specify the rate that the bank offers and the useful life.
- If the bank takes a commission for issuing, calculate the effective rate in Credit Calculator - it and enter it for comparison.
The calculator only counts funding and taxes. Insurance, registration and commissions add to the payments yourself - the leasing company they are often included in the payment.
Frequent questions
How does the price increase differ from the rate?
The rise in price is an overpayment as a percentage of the cost, the rate is a payment for the use of money on the balance of the debt. In the example from this article, the rate of 18% for three years corresponds to an increase in price of about 8% per year. To compare the offer of leasing with a loan is necessary at the rate, not on the rise in price.
Is it possible to buy property out of leasing early?
Usually yes, if it is stipulated by the contract: the leasing company recalculates payments and reduces the amount at the expense of interest for the remaining term. The terms of early redemption should be checked before signing.
What happens if the lease payment is late?
The leasing company will charge a penalty under the contract, and in case of systematic delay has the right to terminate the contract and take property. Already paid payments at the same time compensate: if you paid more than the cost of using the property, the difference must be returned.
Who pays the transport tax on the leasing car?
The one to whom the car is registered with the traffic police, under the contract it can be both a leasing company and a lessee. If the tax is paid by the leasing company, it includes it in the payments.
Is leasing suitable for IP?
Yeah. An individual entrepreneur enters into a leasing agreement in the same way as an organization and takes into account payments in expenses under its tax regime.
