Tax Shield in Financial and Operational Leasing

  • Marzena Wrona The John Paul II Catholic University of Lublin, Faculty of Social Science
Keywords: leasing; tax shield; leasing rentals; deductible costs in leasing

Abstract

Leasing is one of the main funding sources in business. A company with low credit rating can obtain the funding for fixed assets in the form of leasing. Then the question arises: what form of leasing to choose? Which form will be more beneficial for a company? Hence, leasing might be analysed from the perspective of interest that a company will have to pay, but also with respect to the net cash flow that a company will generate dealing with the leasing liabilities. The last issue became the main problem of the article. The other issue emphasised is a definition of tax shield that shapes amount of the cash flow. It revises the amount in plus, thus ipso facto it influences leasing profitability.

References

Bień W.: Zarządzanie finansami przedsiębiorstw, Warszawa: Difin 2011.

Dziawgo D., Zawadzki A.: Finanse przedsiębiorstwa. Istota – narzędzia – zarządzanie, Warszawa: SKWP 2011.

Olchowicz I.: Rachunkowość podatkowa, Warszawa: Difin 2009.

Olchowicz I., Tłaczała A.: Rachunkowość finansowa w przykładach według ustawy o rachunkowości i MSR, Warszawa: Difin 2009.

Published
2020-03-05
Section
ARTICLES