According to China's tax law, the rental income of financial leasing companies belongs to taxable sales, and VAT should be paid according to regulations. Specifically, the financial leasing company needs to calculate the output tax of each rental income and report and pay the value-added tax to the tax authorities within the prescribed tax period.
It should be noted that the financial leasing company can deduct the input tax paid when purchasing the leased assets when calculating the value-added tax. This means that the value-added tax paid by the financial leasing company when purchasing the leased assets can be deducted from the output tax of its subsequent rental income, thus avoiding repeated taxation.
For example, suppose a financial leasing company buys a machine and rents it to the lessee. The purchase price of the machinery and equipment is 6,543,800 yuan, and the input value-added tax is 6,543,800 yuan. The lease contract signed by the leasing company and the lessee stipulates that the lease term is 5 years and the annual rent is 300,000 yuan. Then, in the first year, the rental income of the leasing company is 300,000 yuan. When calculating the output tax, the input tax paid when purchasing the leased assets can be deducted, and the actual value-added tax payable is (30-654.38+0.3) x the applicable tax rate. In subsequent years, the leasing company can continue to use the remaining input tax to deduct the output tax of rental income until the input tax is fully deducted.