Leasing and Factoring Act to impose VAT on lease contracts

Meanwhile, the new Leasing and Factoring Act imposes VAT on lease contracts: The Leasing and Factoring Act, which the House of Representatives approved on Saturday, revokes VAT-exempt status previously granted to lease contracts, according to Al Mal. Several leasing companies have come out strongly against the imposition of the tax, CorpLease General Counsel Salah Youssef tells the newspaper. Tax exemptions were one of the primary perks of using leasing as a non-banking financing tool, and imposing taxes on these contracts will likely slow industry growth, Youssef added.