For income tax purposes a rental is considered an operating expense and the monthly investment including all finance charges are therefore tax deductible.

Savings in VAT is achieved because the tax is not capitalised up front on the total investments but rather paid monthly with each rental. The 15% VAT on the rental will be regarded as an input tax and may be written off against any output tax collected. This creates significant savings for an organization to upgrade within the minimum rental period.

Rentals are completely “off-balance sheet” and shown as an operating expense, thus improving gearing ratios and return on asset ratios. (No note to the financial statements is required)

Rentals avoid capital expenditure budgets and reduce capital outlay as no deposit is required.

Due to the constantly changing needs and requirements of an organisation and the flexibility of the technology, it is imperative to allow for the upgrading either by the replacement or/or the addition to, of the system and present solutions. The rentals option makes allowances for any such eventuality.

The nature of a rental allows for monthly investment plans to be tailored to the organisations cash flow and constraints.

The period and escalation P. A can be utilised to best meet your client’s requirements.