55. Lease Classification and Definitions in Japan リース取引

リース取引について英語でまとめました。
The table below provides an overview of lease transactions (i.e., classification and definitions) for Japanese corporate tax purposes.

See this post for more about Japanese tax and accounting.

The author of this website is not responsible for any damage or loss arising related to this website.

------------------------------------------------

The table below shows the classification of lease transactions in Japan.

Lease transactions
	I.       Finance lease
		A.     Finance lease with ownership transferred to lessee
		B.     Finance lease with ownership not transferred to lessee
	II.     Operating lease

The table below includes the definition of each type of lease.

Lease transactions in Japan
	I.     Finance lease
	A lease is a finance lease if both of the following are met (National Tax Agency [NTA] website):  -   Non-early termination: Early termination is prohibited or in the case of early termination the lessee pays approximately total rentals for the remaining term of the contract (in general 90% or more)  -   Full payout: The lessee substantially obtains economic benefits from the leased asset and substantially bears expenses arising from the use of the leased asset. The lessee substantially bears such expenses if total lease rentals payable by the lessee during the lease term exceed about 90% of the value generally required to acquire the leased asset.
		I.-A. Finance lease with ownership transferred to lessee
		The ownership of the leased asset is transferred if any of the following is met (NTA website): 1.    The ownership of the leased asset is transferred to the lessee by the end of the lease term without consideration or in exchange for nominal value. 2.    The lease contract provides a bargain renewal option that allows the lessee to renew the lease for a nominal amount of rentals. 3.    The lessee has a bargain purchase option to acquire the leased asset at a significantly lower value than its market value by the end of the lease term 4.    The leased asset is expected to be used by only the lessee (e.g., machinery or equipment manufactured to the special order of the lessee), or is difficult to identify (e.g., scaffolding at construction sites) 5.    A financial institution receives a fund from the lessee to assume the lease rentals while lending the fund to the lessor so that the lessor can acquire the leased asset 6.    The lease term is significantly shorter than the useful life of the leased asset. A lease term is significantly shorter if the term is 70% or less of the useful life of the leased asset (or 60% or less if its useful life is 10 years or longer).
		I.-B. Finance lease with ownership not transferred to lessee
		Finance lease other than “I.A. Finance lease with ownership transferred to lessee”
	II.    Operating lease (lease other than finance lease)

------------------------------------------

会計税務についての他の記事にご興味ある方はこちらの目次をご覧ください♬

会計税務英語に関する記事です。質問、コメントお待ちしております！Google アカウントを持ってない方は、「Google アカウント」をクリックし、「匿名」か「名前/URL」を選択してからご記入ください！