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A new fee is being established in Azerbaijan – AMOUNT 550 MANATS
A new fee is being established in Azerbaijan – AMOUNT 550 MANATS
A state fee will be established for the inclusion of persons wishing to engage in financial leasing activities in the register.
This is reflected in the draft law on amendments to the Law “On State Duty,” which was discussed at today’s meeting of the Economic Policy, Industry and Entrepreneurship Committee of the Milli Majlis.
According to the draft law, the state fee for inclusion in the register of lessors for those wishing to engage in financial leasing activities will be 550 manats.
This Law will enter into force 6 months after the date of its publication.
It should be noted that in the Law “On Financial Leasing,” the term “leasing” used in national legislation will be replaced with the term “financial leasing.”
Thus, financial leasing will be considered a lease whereby the lessor transfers the leasing object to the lessee for possession and use and meets one or more of the following criteria:
- the agreement provides for the transfer of ownership of the asset to the lessee at the end of the term or grants the lessee the right to purchase the asset at a predetermined or estimated price;
- the lease term exceeds 75% of the useful life of the asset;
- the residual value of the asset at the end of the lease term is less than 20% of its market value at the beginning of the lease;
- the total lease payments during the term amount to at least 90% of the asset’s market value at the beginning of the lease.
Sale and leaseback is a type of financial leasing where the lessee is also the seller of the asset and obtains ownership rights at the end of the contract.
Financial leasing activity is an entrepreneurial activity related to leasing assets using the lessor’s own or borrowed funds.
Lessee is a legal entity or an individual entrepreneur who, under the agreement, receives the asset for possession and use for a specified period and under certain conditions in exchange for lease payments.
Lessor is a commercial legal entity or a local branch of a foreign commercial legal entity that acquires the asset from the seller and transfers it to the lessee for possession and use in exchange for lease payments.
A state fee will be established for the inclusion of persons wishing to engage in financial leasing activities in the register.
This is reflected in the draft law on amendments to the Law “On State Duty,” which was discussed at today’s meeting of the Economic Policy, Industry and Entrepreneurship Committee of the Milli Majlis.
According to the draft law, the state fee for inclusion in the register of lessors for those wishing to engage in financial leasing activities will be 550 manats.
This Law will enter into force 6 months after the date of its publication.
It should be noted that in the Law “On Financial Leasing,” the term “leasing” used in national legislation will be replaced with the term “financial leasing.”
Thus, financial leasing will be considered a lease whereby the lessor transfers the leasing object to the lessee for possession and use and meets one or more of the following criteria:
- the agreement provides for the transfer of ownership of the asset to the lessee at the end of the term or grants the lessee the right to purchase the asset at a predetermined or estimated price;
- the lease term exceeds 75% of the useful life of the asset;
- the residual value of the asset at the end of the lease term is less than 20% of its market value at the beginning of the lease;
- the total lease payments during the term amount to at least 90% of the asset’s market value at the beginning of the lease.
Sale and leaseback is a type of financial leasing where the lessee is also the seller of the asset and obtains ownership rights at the end of the contract.
Financial leasing activity is an entrepreneurial activity related to leasing assets using the lessor’s own or borrowed funds.
Lessee is a legal entity or an individual entrepreneur who, under the agreement, receives the asset for possession and use for a specified period and under certain conditions in exchange for lease payments.
Lessor is a commercial legal entity or a local branch of a foreign commercial legal entity that acquires the asset from the seller and transfers it to the lessee for possession and use in exchange for lease payments.