Leasing is considered as a special type of financing, which depending on the type of contract, can have characteristics of rent/lease (operative lease) or purchase and sale (finance lease).
Term leasing derives from the English word “to lease” and it is translated with «leasing» or with «give into lease».
Main postulate of financing via leasing is as follows: using the object instead being its owner.

Financing via leasing is particularly suitable for accounting-tax point of view as paying leasing installment represents expenditures for each entrepreneur, which is registered as tax deductible expenditure.

Leasing is considered as flexible type of financing, which can be adjusted to possibilities and needs of the lessee. From the tax point of view, financing via leasing is certainly most profitable way of financing, particularly for legal entities within VAT system.

Several benefits of leasing financing with regard to the standard credit financings:

• Possibility to deduct VAT in total as pretax – (finance lease)
• Tax obligation can be reduced by depreciation (finance lease)
• More flexible usage of assets and increasing current ratio (finance lease)
• Lease object can be evidenced under assets of the company (finance lease) or stated under monthly expenditures of the lessee (operative lease).