S O N A M J A M B H U L K A R
R O L L N O . 8 7 4 , B B A L L B
N A T I O N A L L A W U N I V E R S I T Y , J O D H P U R
...
LEASE
 Meaning: Leasing allows you to pay a
rental for the use of an asset over a
period of time.
This eliminates the nee...
Leasing at Singapore: overview
 Beginning in 1970s.
 Lease is mainly provided to corporate
organizations.
 Lessors are ...
Leasing in Singapore
 Financing of up to 100% of the asset value.
 Goods and Services Tax (GST) is charged on the
monthl...
Leasing scenario in Singapore
0
5
10
15
20
25
30
35
United States Singapore United Kingdom
Leasing percentage
Leasing
perc...
Assets Financed
 Construction Equipment
 Residential leasing
 Vehicles
 Computer
 Office equipments
 Manufacturing e...
Stamp duty on lease in Singapore
LEASE /TENANCY RATES
(a) Where annual rent does not exceed
$1,000
Exempted
(b) Where annu...
Legal Provisions
 Leasing Association of Singapore
 Asia leasing association – headquarter
 Ministry of Finance, 1982
...
Problems in Leasing Environment
 Conventional ordinary lease: barest minimum tax
benefit
 Low value transaction: No bene...
 Reluctance for foreign lease: Because of lack of
medium of confidence on foreign currency and no
medium for long term fu...
Prospects
 Conducive and positive regulatory framework
 Economic restructuring: high technology, increased
mechanism and...
CONCLUSION
 Uncertainty in leasing industry
 Present framework are unsatisfactory
 More development is needed in leasin...
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Lease financing in singapore

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  • A RELIABLE AND A GENUINE PROVIDER THAT CAN DELIVER BANK GUARANTEE AND OTHER FORM OF BANKING INSTRUMENTS FOR LEASE WHICH ARE MAINLY FRESH CUT.

    Bank instruments which are cash backed can be used as thus; clients looking for loans to finance their businesses also serve as a collateral to get loans from banks in other to engage into any project at hand further details will be emailed upon request.

    Email: mklease.broker@gmail.com
    Skype ID: mklease.broker
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Lease financing in singapore

  1. 1. S O N A M J A M B H U L K A R R O L L N O . 8 7 4 , B B A L L B N A T I O N A L L A W U N I V E R S I T Y , J O D H P U R LEASE FINANCING IN SINGAPORE
  2. 2. LEASE  Meaning: Leasing allows you to pay a rental for the use of an asset over a period of time. This eliminates the need to be concerned about asset obsolescence and asset disposal at the end of its useful life.
  3. 3. Leasing at Singapore: overview  Beginning in 1970s.  Lease is mainly provided to corporate organizations.  Lessors are specific companies which are in business of leasing, eg. ORIX leasing Singapore ltd, Hertz car rental, Gold bell corporation, Singapore expacts.  Leasee are usually corporate.  Leasing is also done according to a particular project.
  4. 4. Leasing in Singapore  Financing of up to 100% of the asset value.  Goods and Services Tax (GST) is charged on the monthly rental payments.  Title of the asset is retained by the Leasing Company at all times.  In general, more applicable to equipment with minimal resale value such as copiers or fast changing technological assets.  As a newly industrialized country Singapore’s leasing to total capital investment is relatively low.
  5. 5. Leasing scenario in Singapore 0 5 10 15 20 25 30 35 United States Singapore United Kingdom Leasing percentage Leasing percentage
  6. 6. Assets Financed  Construction Equipment  Residential leasing  Vehicles  Computer  Office equipments  Manufacturing equipments  Medical equipments  Project based Financing
  7. 7. Stamp duty on lease in Singapore LEASE /TENANCY RATES (a) Where annual rent does not exceed $1,000 Exempted (b) Where annual rent exceeds $1,000, Stamp Duty is based on the contractual rent or market rent, whichever is higher - For every $250 or part thereof of the average annual rent for lease term: -Up to 1 year $1.00 -More than 1 year and up to 3 years $2.00 -More than 3 years or for an indefinite term $4.00
  8. 8. Legal Provisions  Leasing Association of Singapore  Asia leasing association – headquarter  Ministry of Finance, 1982  Tax benefits is a reason for lease financing. But in Singapore taxing statutes no reference is made on leasing.
  9. 9. Problems in Leasing Environment  Conventional ordinary lease: barest minimum tax benefit  Low value transaction: No benefit in taxation  Short term leasing: No long economic development due to short term transaction.  Immaturity of long term debt market  No set scale for establishing residual value
  10. 10.  Reluctance for foreign lease: Because of lack of medium of confidence on foreign currency and no medium for long term funds in local currency.  No promotional activities: No promotion of correct concept of leasing so that the correct potential of leasing can be fully exploited.  High tax rate- 40%: No encouragement for leasing, need of liberal approach  Lack of government incentives.
  11. 11. Prospects  Conducive and positive regulatory framework  Economic restructuring: high technology, increased mechanism and automation  Long term leasing incentives  Government support  Amendments in Statutes
  12. 12. CONCLUSION  Uncertainty in leasing industry  Present framework are unsatisfactory  More development is needed in leasing market  Wide range for leasing in International market  Unstable market  Less Taxing benefits

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