International Taxation of Cross-Border Leasing Income

Over the last few decades, the volumes of leasing transactions have grown steadily as businesses have come to realize the tax advantages that come with the lease of assets as opposed to the conventional loan for financing asset acquisition.

Why this book?

Over the last few decades, the volumes of leasing transactions have grown steadily as businesses have come to realize the tax advantages that come with the lease of assets as opposed to the conventional loan for financing asset acquisition. The diversity among the tax laws of countries may even amplify these tax advantages in cross-border situations through, for example, a "double-dip" transaction whereby the lessor and the lessee are entitled to a depreciation allowance due to the peculiar features of the tax law in their respective jurisdictions.

This book investigates how the parties to a cross-border leasing transaction may be able to obtain tax advantages under the relevant tax laws and tax treaties of Germany, Japan, Netherlands, the United Kingdom and the United States. Also, the book examines the whether, and how, the various anti-avoidance provisions under the relevant tax laws may prevent these parties from obtaining undue tax advantages.

By giving a clear and concise description of the tax treatment of cross-border leases at the domestic and tax treaty level, this book will serve as both a reference for the experienced practitioner and a guide for the less experienced tax professional.