What is it?

Leasing is a financing alternative that generates tax and accounting benefits for clients, who can purchase new or used, domestic or imported items without the need to tie up the full amount of funds.

It differs from usual leases for it offers a longer payment term and the option to purchase the asset at the end of the contract.

Who is it intended for?

Companies that need to purchase assets without impacting their liquidity.

Advantages

Financial leasing meets the investment needs of companies, without having to use its own funds.

The IOF tax is not charged, but instead, the ISS tax, which allows for smaller installments;

The bank releases the funds directly to the vendor, thus eliminating the impact of the CPMF tax;

The income tax calculation base drops, since the installments paid are deductible for taxable income and booked as an expense in statement of income;

During the entire term of the contract, the leased asset will be recorded as a fixed asset of the lessor, thus improving the leaseholder?s (client?s) fixed asset ratio;

The asset will enter the leaseholder?s fixed assets according to its VRG value.

Characteristics

Rate: Fixed Lease Terms: Minimum - 24 months for assets with a useful life of up to 5 years; and 36 months for assets with a useful life greater than 5 years. Maximum ? pursuant to the availability of credit and compatibility of funds.