The so-called "Direct Lease" means that the financial leasing company purchases the required equipment from the lessee, provides services to the lessee, and collects rents from the lessee on this basis until the principal and interest of the equipment are paid on time, and transfers the equipment to the lessee. Leaseback means that the company sells the existing equipment to the leasing company, which transfers the equipment to the company, which pays the rent on a monthly basis and takes back the equipment. Direct leasing is a solution to a company's need for equipment, which is a standard finance lease; leaseback is a solution to a company's long-term liquidity needs, similar to a long-term equipment mortgage.
The taxes involved in direct leasing and leaseback are different:The value-added tax (VAT) on the purchase of equipment for direct leasing is currently 13%, which can be deducted for imported goods. It is not deductible on a pre-tax basis as the lessor's depreciation of the leased equipment is deductible on a pre-tax basis. The VAT rate for leaseback is currently 6%, with a general invoice, which cannot be used as input tax deduction. From a tax saving perspective, the tenant is purchasing the equipment outright and then financing it on a leaseback basis. For energy-saving and environmentally friendly equipment, the corporate income tax can be reduced by 10%.
The process of direct leasing and leaseback business is different:Direct leasing includes at least two contracts, three parties,two covenants, one for sale and one for purchase and sale; three parties: lessee, lessee, lessee. Leaseback financing refers to the leasing company and the customer to enter into the "equipment purchase and sale contract", to obtain the ownership of the equipment, and sign the "leaseback agreement", the equipment will be leased to the customer. Leaseback is only a change in the property rights of the equipment, not a change in the ownership of the equipment, so in the process of leaseback, the property rights of the equipment will not be transferred, and only need to carry out a written handover, and the maintenance of the equipment and depreciation of the depreciation of the same with direct leasing, by the financial lessor financial accounting will only be transferred from its own fixed assets to the fixed assets of the financial lessor. The equipment has been mortgaged shall not be re-leased, financial leasing in the existence of claims and rights issues, the leasehold is a claim, and the mortgage is a right in rem, in law is the first right in rem, and then is a claim, therefore, the equipment has been mortgaged can not be leased back.