COMPETITIVE ADVANTAGES OF LEASING AS A FINANCIAL INSTRUMENT

Abstract

The article explores the сompetitive tax advantages of leasing compared with a loan on the basis of identifying the costs arising from these models of financing. The the сompetitive advantage is analyzed by determining the indicator of the present value. There are the flow cash schemes of two types of financing on the basis of which we can do a conclusion that the financing with the use of leasing is more «expensive», but more effective and profitable. This becomes possible by reducing the taxable base for the income tax in the amount of leasing payments.