Leasing / Renting

LEASING FOR MACHINERY

Customer Advantages

Saves costs

Since the tax savings are higher than the cost of financing.

Does not add up in CIRBE

Financial product that is not declared to the Bank of Spain.

Ownership of the asset at the end of the period

For an additional fee, the customer will own the equipment.

Tax deductible expenses

100% of the fee is a cost to the company and is therefore deducted in full in the Profit and Loss Account of the Corporate Income Tax or Income Tax Return.

Treasury and borrowing capacity intact

100% of the investment is financed, with no down payment or arrangement fee.

Advantages supplier equipment

Possibility to include maintenance

The cost of maintenance during the leasing period is estimated, included in the invoice and charged up front.

Cash collection

At the time of installation or delivery of the equipment.

Renewal of equipament

At the end of the period, the customer will be able to keep the asset, but it is a commercial opportunity to renew the equipment for a more modern one.

Risk-free hire purchase

Your customer will pay in instalments, and in case of non-payment, the finance company will take over.

Example

INVOIUCE: 30.240 € + VAT DEADLINE: 60 MONTHS QUOTA: 619,62 € + VAT

TOTAL PAYMENTS: 37.177 €

PAYMENTS PER YEAR: 619,62 € x 12

7.435,41 €

SPENDING 100% DEDUCTIBLE
FOR CORPORATE TAX PURPOSES

BASE RATE OF CORPORATION TAX ON 25%

7.435,41 € x 25% = 1.858,85 €

SAVING OF
TAX SAVING YEAR

TAX SAVINGS OVER 5 YEARS:

1.858,85 € x 5 AÑOS = 9.294,26 €

“COST” FINANCING OF 6.937,06 €

FINAL SAVINGS 2.357,21 €

COST vs. TAX SAVINGS SIMULATOR

Invoice:
Deadline months:
Monthly fee:
Total Payments:
Finanaciation costs:

30.240.00 €
60
619,62 €
37.177,06 €
6.937,06 €

Corporate tax rate:
Annual deductible expense:
Annual tax savings:
Tax savings total period:

(Tax savings
cost of financing)

25%
7.435,41 €
1.858,85 €
9.294,26 €

SAVING
9.294,26 €

What is to be delivered?

REQUIREMENTS

▪ Companies and/or freelancers
▪ In profits in the last tax official
(Corporate Income Tax or Rent)
▪ Positive equity
▪ Two years old

MINIMUM DOCUMENTATION

COMPANIES

▪ Corporate income tax 2020
▪ VATS’s 2021-2022
▪ Progress Closing 2021
▪ E-mail and telephone administrator

SELF-EMPLOYED

▪ Income 2020
▪ Quarterly 2021-2022
▪ Working life
▪ DNI – Telephone – E-mail