Description & Legislation

TIMINGS

FIXED ASSETS LEASING
Equipments
The parties are free to negotiate with the legal imposition that the contract must not go over the term which corresponds to the presumable length of economic utilization of the asset.
The most common: 24 to 48 months

REAL ESTATE LEASING
The parties are free to negotiate with the legal imposition of a maximum term of 30 years. In the case of omission in the contract, legislation stipulates a term of 7 years.
The most common: 7 to 10 years

AMOUNT

FIXED ASSETS LEASING
Equipments
Up to 100% of the investment.

REAL ESTATE LEASING
Up to 100% of the investment (can include: Municipal Transmission Tax, notary and registration deeds).

RESIDUAL VALUES

This question only relates to Financial Leasing which has no legal imposition regarding this issue.

The most common:
Fixed assets: 2 to 6%
Real estate: 10%

RENTS` SCHEME

System: Early payment or payable in arrears.
Terms: Constant or variable
Frequency: Monthly, quarterly, biannually or annually.
Interest rates: Fixed or Indexed.
The most common: Constant, monthly or quarterly early payment rents.

TAX

FIXED ASSETS LEASING
Equipments
CiT: Interest may be deducted according to legislation.
PiT: Interest may be deducted according to legislation.
VAT: Subject to VAT at the rate of acquisition of the asset (recoverable in some applicable cases).
Stamp Duty (Imposto de Selo): Not applicable.

REAL ESTATE LEASING
CiT: Interest may be deducted according to legislation.
PiT: Interest may be deducted according to legislation.
VAT: Exempt, allowing for the waiver of that exemption according to the law.
Stamp Duty (Imposto de Selo): Not applicable.
Municipal Transaction Tax (IMT): normal regime while still being able to benefit from the applicable reductions set in the law.
Property Tax (IMI): Normal regime.