Financial lease refers to a lease that essentially transfers all or most of the risks and rewards related to asset ownership. Financial leasing companies are divided into financial leasing and non-financial leasing.
Financial leasing is mostly approved by the CBRC, including bank recruitment and bank construction. By February of 20 16, it had reached 50, and 17 was established only in 20 15.
For non-financing leasing, foreign capital is approved by the Ministry of Commerce, and domestic capital is jointly approved by the Ministry of Commerce and the State Administration of Taxation.
Category I: Financial leasing companies in the financial system are approved by the CBRC with a registered capital of over 654.38 billion yuan.
Category II: Foreign-invested financial leasing companies are approved by the Ministry of Commerce, with a registered capital of100,000 USD or more. The Ministry of Commerce has delegated the examination and approval authority to the commerce committees of provinces and municipalities directly under the Central Government.
Category III: Domestic pilot financial leasing companies are jointly approved by the Ministry of Commerce and State Taxation Administration of The People's Republic of China, with a registered capital of more than RMB 654.38+700 million. Upon acceptance, the Provincial Commerce Commission will report to the Ministry of Commerce and State Taxation Administration of The People's Republic of China for approval.
2. The leasing business is mainly divided into direct leasing and leaseback. Direct lease means that the lessee takes the equipment to be purchased as the lease item, which is more like installment payment, but the ownership belongs to the leasing company during the lease period.
Leaseback means that the lessee uses the existing equipment as the lease item, which is similar to mortgage loan dai//.
Although it has no ownership during the direct lease period, it is regarded as a purchase for tax purposes and can be depreciated and deducted. The equipment seller issues a VAT invoice to the leasing company in full, and the leasing company issues an invoice to the lessee, including the equipment and interest.
Lease-back invoices are complicated, and State Taxation Administration of The People's Republic of China has special regulations. Although there are sales and repurchase in form, in order to support financial leasing, the state currently only taxes the interest part of leaseback. The practice of most companies is to issue receipts for principal and invoices for interest and service fees.
Direct rent is closer to the essence of leasing, and leaseback is more like shadow banking. The former is beneficial to the development of manufacturing industry and should be vigorously carried forward. The latter has become a necessary means for the scale accumulation of leasing companies. In particular, 19 financial leasing companies were established last year, and it is said that there are more than 200 companies waiting in line. Everyone turned their attention to the government platform, which has a great demand for assets and is safer than private enterprises.