Operative leasing is intended for those clients who are interested, above all, in the use and not so much the purchase of the subject matter. This form of leasing is usually the choice of legal entities and enterprising individuals with the capacity to adjust the amount of monthly rents. Upon the agreement’s expiry they can prolong the lease, return the subject matter of the agreement, or pay it off.
The balance sheet and tax aspects of operative leasing (for legal entities)
The leasee may benefit from all advantages of off the balance-sheet financing. The entire rent represents expenditure on the balance sheet which subsequently lowers the taxable base for the calculation of income tax.