Leasing entrepreneurs appeal to finance ministry

As previously announced, the leasing industry is working on implementing a shielding package for its clients to allow deferment of lease liabilities. As it turns out, not every entrepreneur can be covered by such leasing holidays without tax consequences.

“The problem concerns, among others our clients, who once helped other entrepreneurs to get out of their problems and agreed to take over in the form of an assignment of their leasing contract,” Andrzej Krzemiński, chairman of the Executive Committee of the Polish Leasing Association (ZPL), noted.

Pursuant to tax regulations, leasing contracts concluded from 2013 allow the transfer of rights and obligations under the contract to another entrepreneur (so-called assignment of the leasing contract) provided that other provisions of the contract have not changed.

“The provisions in this regard should be interpreted as meaning that in the event of a change in the contracting party (assignment of the leasing contract) if there is no change to other provisions of the contract, but only a change in the party and its accession to the rights and obligations of the existing beneficiary, the tax rule settlement of such a contract should be done as if nothing has changed. If the rights and obligations are transferred to another entity, the lease agreement itself will not be interrupted, but only one part of the agreement will be replaced by another entity. This understanding of the provisions is also confirmed by the justification for the amendment, which gave entrepreneurs this type of authorization,” Krzemiński emphasized.

(WBJ)