You can enjoy the import tax exemption when you use leasing service to import the machine for investment purpose. Other taxes and fees are according to Tax Department and Custom Department’s policy..
VAT can be deducted according to Vietnam Tax Policy.
(accountant – sample)
Lessee uses the Leased Asset as the asset introduction, warranty and maintain service from Supplier (if any). Please directly contact the Supplier if Leased Asset has any problem. In case Leased Asset get broken or any damage, beside contact supplier, please inform us if you want any support.
The ownnership will be transferred to Lessee when Lessee can finish their responsibility due to Leased Agreement at the expiry date of lease term.
Leasing company owns the ownership of leased asset during the lease tenor
Lessee chooses the leased asset due to Lessee’s demand.
The lease asset is movable asset and is purchased from local supplier or foreign supplier. It includes: vehicle, machinery, production line, construction equipment and office automation machine.
The lease interest rate will be applied fixed rate or floating rate according to two parties’ negotiation and Leasing company’s policy.
Lease interest rate caculation is based on the financing amount during the lease terms that shall be negotiated by Lessee and Lessor. The monthly lease interest caculation is based on the outstanding balance.
If you want to pre-terminate the Leased Agreement, you should pay: principal, VAT, overdue interest (if any), residual value and penalty of pre-termination. Penalty of pre-termination is mentioned in Leased Agreement.
Residual Value is an amount of money that Lessee pays to Lessor at the expiry date or at the time as of two parties’ negotiation. This amount is for Lessor issue the invoice to transfer the ownership to Lessor.
Security Deposit (or Deposit) is an amount of money that Lessee remits to Lessor to ensure they will follow up the Leased Agreement. Lessee will receive back this amount at the expiration of the lease term or as of the beginning negotiation of two parties.
The monthly rental shall be paid by banking remittance. We will inform you the monthly rental you need to pay by fax or email.
Individual business also can apply for leasing credit-line if you have demand to purchase the movable asset and can meet the leasing credit criteria.
New establishment company also can apply for leasing credit-line if you can meet the leasing credit criteria of leasing company. The percentage of new establishment company’s application be approval is not as high as the long time establishment and long time operation company. When we consider to support a leasing credit-line, we do not only base on establishment time but also base on operating time.
Personal Guarantor is a type of guarantee for leasing agreement. Person who signs Personal Guarantor Agreement has responsibility to pay the rental and any related overdue of Leased Agreement if Lessee can’t pay anymore
Our customers are any companies that was established under Vietnam business Law, related to manufacture, construction, transportation,… with the operating time over 2 years.
Lease application procedure usually takes 3 days to 10days after the day we received the required documents from Lessee. Time to get approval depends on the application documents, Lessee’s credit history, financing amount and cooperation from Lessee.
Lease tenor is a period that customer pays the rental. When this period expires, the ownership of leased asset will be transferred to customer. Lease tenor of financial leasing is usually from 2 years to 5 years. The lease tenor will be applied according to customer’s demand and Leasing company’s policy.
Below are some of the benefit of financial leasing:
The lease payment is a tax-deductible expense.
Bank Credit line can be preserved to allow better funding flexibility.
Long-term financing and fixed lease rent make cost control easier.
Letter of credit opened for leased assets can be arranged.
Fast and simple application procedure to meet the timing of customer demand.
Inflation is hedged and budgeting is less restricted.
Leasing company is a credit institution, operating under the Regulation of State Bank of Vietnam and Financial Policy of Vietnam Government. Leasing company provides financial leasing service, operating leasing service, Sale and leased back, and other services that be approved by State Bank of Vietnam.
Financial leasing is a type of middle and long term credit facility which is for purchasing movable asset (leased asset). Leasing company (Lessor) holds the ownership of the leased asset. Customer (Lessee) pays the monthly rental including principal and interest during the lease tenor. When the lease period expires, the ownership of Leased asset will be transferred to Lessee.