Finance And Tax Policy Of Financing Lease And Its Tax Planning

The financial leasing is one kind of particular transaction, to provide the necessary equipment to the lessee by the lessor, with the dual function of financing and financial. China’s financial leasing industry started relatively late, there are Inadequacies of financial leasing industry in the relevant trading rules, accounting standards, industry regulatory and tax policy. The scale of development of the current financial leasing industry is far lower than the level of China’s huge market demand can support.VAT in2009, the relevant department has not been given clearly defined if the finance lease capital equipment can be deducted input VAT. And the common response is the use of sale-leaseback to obtain VAT invoices. In the tax reform "12th Five-Year Plan", the largest tax VAT reform is of concern. The Government decided to expand the scope of the VAT tax, VAT and the integration of the sales tax, for the purpose of elimination of double taxation and promote industrial upgrading and transformation of economic development. From January1,2012, Shanghai began to switch sales tax to value-added tax reform in transportation and part of the modern service industry business. The tax rate is17%for which provides tangible personal property under finance leases applicable, and part of more than3%of the actual VAT is to adopt Jizhengjitui policy. At the same time, the improvement and application of financial leasing industry in tax laws further requirements as part of the financial industry in the future and it will receive more attention both inside and outside the industry.The purpose of this study is to analyze the problem that still exists in the current financial leasing industry, through understanding the generation of financial leasing industry, the understanding of development and the development status in China, on the basis of the tax planning of three aspects in the corporate income tax, turnover tax, lessor and the lessee has any relationship.