Definitions

Leasing represents a modern form of financing, implying the transfer to the User of the right of use together with all the risks and benefits afferent to the property title on the good object of the financing, in exchange of a periodical payment called leasing instalment.

In the case of leasing operations, the user quality may be hold by any Romanian or foreign, natural or legal person.

According to the legal provisions, in Romania, two types of leasing: financial and operational are regulated.

Financial Leasing supposes that since the beginning of the contract, the user is transferred the risks and benefits of the property title, it registers the good under administration, it redeems it during the contract length, having the right to become its owner at the end of the leasing contract.

Operational Leasing is assimilable to a renting contract, the user only having the right to use the good in exchange of an amount called 'instalment’.

The difference consist of the fact that the Financier, as the owner of the good, holds the risks and benefits of the property title, having the good under administration and redeeming it.

According to the Fiscal Code, art.7

Financial Leasing Contract ― any leasing contract accomplishing at least one of the following conditions:
a) the risks and benefits of the property title on the good object of the leasing are transferred to the user in the moment when the leasing contract produces its effects;
b) the leasing contract expressly provides the transfer of the property title on the good object of the leasing to the User, in the moment when the leasing contract expires;
c) the user has the option to purchase the good in the moment when the leasing contract expires, and the residual value expressed in percentage is smaller or equal to the difference between the normal length of maximum operation and the length of the leasing contract, as reported to the normal length of maximum operation, expressed in percentage;
d) the length of the leasing exceeds 80% of the normal length of maximum operation of the good object of the leasing; in the meaning of this definition, the leasing length includes any interval for which the leasing contract may be extended;
e) the total value of leasing instalments, less the accessory expenses, is higher or equal to the entry value of the good;

Operational Leasing contract ― any leasing contract concluded between the locator and the tenant, which transfers to the tenant the property title risks and benefits, less the capitalization risk of the good at its residual value, which does not accomplish any of the conditions provided at points 7 letters b) and e); the capitalization risk of the good at its residual value exist when the purchasing option is not exercised at the beginning of the contract or when the leasing contract expressly provides the good restitution in the moment when the leasing contract expires.

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