Publication date: 09.07.2024
Legal regulation of leasing activities in Ukraine
Introduction.
Leasing is one of the most important forms of financing that allows businesses to use the necessary equipment, machinery or vehicles without having to purchase them. This is especially important for small and medium-sized businesses that may not have sufficient resources for large capital investments. In Ukraine, legal regulation of leasing activities is aimed at ensuring transparency, reliability and efficiency of this financial instrument. In this article, we will review the main principles, regulations and authorities that regulate leasing activities in Ukraine.
Basic principles of legal regulation of leasing activities
The legal regulation of leasing activities in Ukraine is based on several basic principles that ensure legal certainty and protection of the interests of participants in leasing relations:
Theprinciple of legality. All leasing transactions must be carried out in accordance with the current legislation of Ukraine. Leasing companies are obliged to comply with all regulatory requirements, and leasing agreements must be concluded in accordance with the established legal norms.
Theprinciple of equality of the parties. The parties to the leasing relationship - the lessor and the lessee - have equal rights and obligations. Leasing agreements should provide for balanced terms that take into account the interests of both parties.
Theprinciple of transparency. Leasing companies are obliged to provide complete and accurate information on leasing terms, including the cost of services, the amount of lease payments, the term of the agreement and other important aspects.
Theprinciple of economic feasibility. All leasing transactions must be economically feasible and aimed at satisfying the lessee's needs to use the property without purchasing it.
Key regulations
The legal regulation of leasing activities in Ukraine is based on a number of regulations, among which the key ones are
TheCivil Code of Ukraine. The Civil Code regulates general provisions on leasing agreements, including rights and obligations of the parties, terms and conditions of conclusion and performance of the agreement, and liability for its violation.
The CommercialCode of Ukraine. The Commercial Code establishes the legal basis for leasing activities in the field of economic relations, defines the principles of organization and functioning of leasing companies.
TheLaw of Ukraine "On Financial Leasing". This law is the main special regulatory act governing legal and economic relations in the field of financial leasing, defines the procedure for concluding, executing and terminating financial leasing agreements.
TheLaw of Ukraine "On Licensing of Economic Activities". The Law establishes the procedure for licensing leasing activities, requirements for leasing companies and the procedure for obtaining licenses.
Tax Code of Ukraine. The Tax Code defines the specifics of taxation of leasing transactions, including the procedure for calculation and payment of taxes, tax benefits and exemptions.
State regulatory authorities
The main governmental authorities that regulate and supervise leasing activities in Ukraine are:
TheNational Bank of Ukraine (NBU). The NBU supervises the activities of financial institutions, including leasing companies that have the status of financial institutions. The NBU sets capital, licensing and financial reporting requirements for leasing companies.
Ministry of Finance of Ukraine. The Ministry of Finance develops and implements regulations in the field of financial leasing and coordinates the activities of other government agencies in this area.
State Tax Service of Ukraine (STS). The STS monitors compliance with tax legislation in the field of leasing activities, conducts inspections of the correctness of tax calculation and payment by leasing companies.
Rights and obligations of the parties to leasing relations
The legal regulation of leasing activities defines the rights and obligations of the parties to leasing relations - the lessor and the lessee.
Rights of the lessor
Theright to receive lease payments. The lessor has the right to timely and full receipt of lease payments in accordance with the terms of the agreement.
The right to return theproperty. In the event of expiration of the lease agreement or its early termination, the lessor has the right to return the leased property in good condition.
Theright to compensation for damages. The lessor has the right to compensation for losses incurred by the lessee as a result of breach of the agreement, in particular in case of damage or loss of the leased property.
Lessor's obligations
Obligation to transfer theproperty. The lessor is obliged to transfer the property to the lessee in a condition suitable for its intended use in accordance with the terms of the agreement.
The obligation toinsure. The lessor is obliged to provide insurance of the leased property for the entire term of the agreement, if provided for by the agreement.
The obligation to maintain theproperty. The lessor is obliged to ensure that the necessary repairs and maintenance of the property are carried out, if provided for by the terms of the agreement.
Rights of the lessee
Theright to use the property. The lessee has the right to use the leased property in accordance with its purpose and the terms of the agreement.
The right to purchase theproperty. The lessee has the right to purchase the leased property after the expiration of the contract, if provided for by the terms of the contract.
Theright to information. The lessee has the right to receive information from the lessor about the condition of the leased property, insurance conditions and other important aspects.
Obligations of the lessee
The obligation topay lease payments. The lessee is obliged to pay lease payments in a timely manner and in full in accordance with the terms of the agreement.
The obligation to comply with theoperating conditions. The lessee is obliged to use the leased property in accordance with its purpose and comply with the operating conditions established by the agreement.
The obligation to return theproperty. After the expiration of the contract or its early termination, the lessee is obliged to return the leased property in good condition, unless otherwise provided by the contract.
Types of leasing
In Ukraine, there are several types of leasing that differ in form and terms:
Financial leasing is a form of leasing where the lessor transfers to the lessee the right to use the property for a specified period with the right to purchase it after the expiration of the contract. The terms of financial leasing provide for depreciation of the property over the term of the agreement and payment of lease payments covering the cost of the property and interest.
Operating leasing is a form of leasing where the lessor transfers to the lessee the right to use the property for a short period of time without the right to buy it back. After the expiration of the contract, the property is returned to the lessor, who can lease it back to other customers.
Leaseback: This is a form of leasing in which the owner of the property sells it to the leasing company and simultaneously enters into a lease agreement for the property. Thus, the owner continues to use the property but receives the necessary financial resources.
Tax aspects of leasing activities
Tax regulation of leasing activities in Ukraine is carried out in accordance with the Tax Code of Ukraine. The main tax aspects of leasing activities include:
Valueadded tax (VAT). Leasing transactions are subject to VAT at the rate of 20%. Lease payments are also subject to VAT, unless otherwise provided by law.
Corporate income tax. Leasing companies' income from leasing activities is subject to corporate income tax at a general rate of 18%. Leasing companies may take into account depreciation deductions on the value of leased property when determining the taxable object.
Single tax. Leasing companies that are single tax payers may apply the simplified taxation system if their income does not exceed the limits established by law.
Property tax. Leased property may be subject to real estate tax or transport tax, depending on its type and location.
Leasing agreements
Leasing agreements are the main legal instrument regulating the relations between the lessor and the lessee. The main provisions of the leasing agreement include:
Subject of the agreement. Definition of the leased property, its characteristics and value.
Theterm of the agreement. Determination of the term for which the lease agreement is concluded and the terms of its extension or early termination.
Lease payments. Determination of the amount, frequency and procedure for payment of lease payments.
Rights and obligations of the parties. Determination of the rights and obligations of the lessor and the lessee regarding the use, maintenance and return of the leased property.
Liability of the parties. Determination of the terms of liability of the parties for breach of contract, including penalties and compensation for damages.
Conclusion.
Legal regulation of leasing activities in Ukraine is an important tool for ensuring transparency, reliability and efficiency of this financial instrument. It includes the regulatory framework, activities of state regulatory and supervisory authorities, rights and obligations of the parties to leasing relations, types of leasing and tax aspects of leasing activities. Effective legal regulation contributes to the development of leasing activities, increasing access to finance for enterprises and ensuring stable economic development of Ukraine.
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