According to the Circular of the Ministry of Finance and the State Administration of Taxation on the Adjustment of the Value-added Tax Rate (Cai Shui [2018] No. 32):
Beginning from May 1, 2018, the tax rate of value-added tax (VAT) is adjusted to 16%, 10%, 6%, and 0%. The tax rate on the sale of goods and services is 16%. The tax rate for the provision of tangible movable property leasing services is 16%. The tax rate is 6% for taxpayers incurring taxable behavior.
Except for the following:
Provision of transportation, postal, basic telecommunication, construction and real estate leasing services,
Sale of real estate and transfer of land use rights, the tax rate is 10%.
The tax rate is zero for cross-border taxable acts occurring by domestic units and individuals.
The VAT rate for small-scale enterprises is 3%.
Expanded:
Financial leasing (financial lease) is the most common and basic form in the international arena. It refers to the lessor according to the lessee's (user) request, and the third party (supplier) to enter into a supply contract, according to this contract, the lessor to finance the purchase of equipment selected by the lessee. At the same time, the lessor enters into a lease contract with the lessee, leasing the equipment to the lessee and charging the lessee a certain amount of rent.
Financial leasing refers to the lessor according to the lessee's specific requirements for the leased object and the supplier's choice, the lessor to finance the purchase of leased objects to the supplier, and leased to the lessee to use the lessee, the lessee pays the rent in installments to the lessor, in the lease period of the leased object of ownership belongs to the lessor all the lessees have the right to use the leased object. The lessee pays rent to the lessor in installments.
The expiration of the lease term, the rent is paid and the lessee performs all the obligations according to the provisions of the financial lease contract, the attribution of the leased object is not agreed or is not clear, can be supplemented by the agreement; can't reach a supplemental agreement, in accordance with the relevant provisions of the contract or the trading habits of determining, and still can't be determined, the ownership of leased objects belong to the lessor.
Financial leasing is a new type of financial industry that combines financing and financing, trade and technology renewal. Due to the combination of financing and financing, the leasing company can recover and deal with the leased objects when problems arise, thus the requirements for enterprise creditworthiness and guarantee are not high when dealing with financing, so it is very suitable for small and medium-sized enterprises to finance.
China's financial leasing is a product of the reform and opening-up policy. After the reform and opening up, in order to expand international economic and technological cooperation and exchanges, open up a new channel for the utilization of foreign capital, absorption and introduction of foreign advanced technology and equipment, in 1980, China International Trust and Investment Company introduced the leasing method. 1981 April the first joint venture leasing company China Oriental Leasing Company Limited was established in July of the same year, the establishment of the China Leasing Company. The establishment of these companies marked the birth of China's financial leasing industry.
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