What are the tax advantages of an Operational Lease construction?

Operational Lease offers business owners a range of tax benefits that make it an attractive option for managing a company's mobility needs. These advantages are discussed in detail below, with a focus on the positive tax implications of opting for an Operational Lease construction.

Fiscal Advantages of Operational Lease

• Full Deductibility of Lease Costs: One of the most immediate tax advantages of Operational Lease is that the full monthly lease payment is deductible from turnover as a business expense. This reduces the company's taxable profit, resulting in a direct tax advantage. This aspect makes Operational Lease particularly attractive for companies looking to manage their operational costs efficiently.

• No Capital Investment Required: Since the vehicle is not placed on the company's balance sheet, there is no need for an initial capital investment. This keeps the company's capital position strong and positively affects liquidity ratios. Avoiding such an investment can be especially beneficial for companies that prefer to allocate their capital to core business or other investment opportunities.

• Control and Predictability of Costs: The lease agreement includes a fixed monthly amount that covers all the costs of operating the vehicle, including maintenance, repair, and often insurance. This cost certainty facilitates accurate budgeting and financial planning, with no unexpected vehicle expenses.

• Fiscal Efficiency for Electric Vehicles: Operational leasing of electric vehicles can be extra fiscally attractive due to lower additional tax rates. This makes opting for eco-friendly vehicles not only sustainable but also fiscally beneficial. It encourages entrepreneurs to invest in greener options, contributing to the sustainability goals of both the company and the government.

• No Worries About Residual Value: At the end of the lease term, the vehicle is simply returned to the leasing company. There are no worries about the sale or residual value of the vehicle, which is often the case with own ownership or Financial Lease. This eliminates the risk of depreciation and potential losses when the vehicle is sold.

• Administrative Simplification: The leasing company takes over the management of the vehicle, reducing the administrative burden on the business owner. This means less time spent on vehicle administration and more time available for the company's core activities.

Because of these tax advantages, Operational Lease is an attractive option for companies looking to minimise costs while remaining flexible in their vehicle management. It is advisable to work with a tax advisor to assess the specific benefits for your business so that you can take full advantage of the tax opportunities offered by Operational Lease.