What are the tax advantages of a Financial Lease construction?

There are several tax advantages associated with a Financial Lease construction. Since the customer is the direct economic owner of the vehicle, he can capitalise the purchase price of the car on the balance sheet. The depreciation costs can be deducted from sales to reduce taxable profit, you will pay less tax on the profit from your business. 

In addition, the interest is tax deductible. Interest may be deducted from profits. Entrepreneurs can also make use of the investment deduction. This is a tax benefit in case of investment in an asset. An entrepreneur can only use the investment deduction in the case of vehicles intended for professional road transport, such as buses and courier companies. Finally, one can of course make use of the option to reclaim VAT.