Assume that the contract does not set the symbolic and the real purchase price amounting to 10 percent of the costs of the lessor, related to the acquisition of the leased asset, and the price is not included in the lease payments. The total amount of lease payments under such contract is less than the amount of the redemption price of the leased asset, as compared with the total lease payments, with full cost recovery, the lessor, that is to include the redemption price. So, at the end of the lease agreement for the purchase of leased property in the lessee must carry out additional payment to lessor in the amount of purchase price. To what consequences this fact when calculating the profit tax and property tax? In accordance with paragraphs. 10) of paragraph 1 of Article 264 of the Tax expenditures for profits tax purposes, the lessee recognizes rent (lease) payments are reduced by the amount of depreciation on that property, calculated in accordance with Article 259 of the Tax Code. This may occur two ways: 1) for the period of the original contract value of the property is fully depreciated, and 2) the original cost depreciated part. In the first case the period of the lease payments in the tax accounting for current costs through the amortization would be allocated the entire cost of the leased property, the sum is greater than it is included in the lease payments in the amount of purchase price. The other component of the cost of leasing services on this amount will not be refunded.
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