Can financial leasing be converted into operating leasing?

Author: Is Shaquan OK in China? You can say for sure. Because there were precedents before, and now there are examples. As early as the initial stage of the development of financial leasing in China, many cars were rented in through financial leasing and then rented out through operating leasing. At that time, the transportation industry had a strong ability to rent back, and there were no restrictions on laws and regulations. In a period of time (84~85 years), it became the mainstream of financial leasing companies. Later, it was terminated because its lease method was to buy a car in disguise and evade control. In recent years, Zhejiang Leasing Company has also developed bus leasing, the essence of which is to transform financing leasing into operating leasing. As long as the information is disclosed according to the lease accounting standards, it should be said that there is no problem in paying taxes according to the national tax system. The above examples are all consumers. Leased items belong to general equipment and are easy to recycle. So far, there have been no major problems. With the development of innovative leasing, people put forward higher requirements for this way. People not only seek financing, but also aim to solve multiple problems such as off-balance sheet financing and reducing investment scale. According to China's accounting system, financial leasing items are included in the lessee's fixed assets for financial treatment (note: not included in the lessee's fixed assets), and the lessee draws depreciation, while operating leasing items are not included in the lessee's fixed assets, and the lessor draws depreciation. If a financial lease is converted into an operating lease, the accounting treatment of the final lessee can be carried out in accordance with the Accounting System for Operating Leases. It stands to reason that financial leasing companies can operate operating leasing business completely. Why should they transfer this to their hands? There are two reasons: first, the operating qualification of operating leasing companies belongs to franchising, while financial leasing companies do not have this qualification. In this way, financial leasing companies can intervene in the franchise scope of operating leasing companies; Another reason is that operating leasing companies need financing to expand their business scale. Can this business be developed? The first is to look at market demand. This practice can only be established if the financial leasing company, the operating leasing company and the ultimate lessee all have this demand and can guarantee the profit requirements of all parties. The second is the issue of property rights. In the case that the operating leasing company has not fully obtained the ownership, subletting the leased object is a problem. At present, there is no perfect guarantee system in law. After entering the lawsuit, the procedure is complicated because it involves the rights and interests of three or more parties (suppliers). Thirdly, due to different tax systems, there is no tax deduction condition in the whole leasing process at present, and repeated taxation makes the rental cost higher. Before starting this business, we must make a detailed analysis of the benefits of leasing, make a detailed study of legal issues, and operate carefully. The nature of other operating leasing businesses has changed, such as hotel industry, taxi industry, public welfare industry, infrastructure, etc., and it has developed from a "leasing" industry to its own independent industry. The subletting business with them seems to be a financial lease to an operating lease in form, but it can be operated in the form of a single lease in practice.