In sale-and-leaseback, the entrepreneur sells an asset they already own — a car, machine or equipment — to a leasing company and immediately leases it back. The item stays in the firm and serves as before, while cash lands on the account. This is a financing tool, not a tax saving: its profitability depends on the cost of interest, the form of taxation and the limits for passenger cars.
How the transaction runs
- Valuation — the leasing company assesses the market value of the item; it usually finances part of that value, and the age of the item matters for the availability of an offer.
- Sale — the entrepreneur issues a sales invoice to the financier. The item stops being their fixed asset.
- Lease agreement — signed with the same financier; under Article 709² of the Civil Code it requires a documentary form, so an exchange of signed files is enough.
- Instalments — paid over the contract term, with an option to buy out at the end.
The most common reasons for using sale-and-leaseback are the need for working capital, an own contribution for a larger investment, repayment of more expensive debt or evening out liquidity after late payments from clients.
Operating or financial lease
| Feature | Operating lease | Financial lease |
|---|---|---|
| Who depreciates | Financier | User (entrepreneur) |
| Tax cost of the user | Whole instalment (with limits for passenger cars) | Interest part of the instalment and depreciation write-offs |
| Minimum contract term (movables) | 40% of the normative depreciation period | Fixed term |
| VAT | From each instalment | On the whole value at the start of the contract (treated as a supply of goods) |
The conditions for an operating lease are set out in Article 23b of the PIT Act: the sum of payments (net of VAT) must correspond at least to the initial value of the item, and for another contract on the same item — to its market value. The rules for financial lease are in Article 23f of the same Act.
Passenger car: limits in 2026
In a sale-and-leaseback of a passenger car, the part of the instalment corresponding to repayment of the car's value is a cost only in the proportion of the limit to the value of the car. The PIT Act provides three thresholds:
- PLN 225,000 — electric and hydrogen-powered cars;
- PLN 150,000 — when CO2 emissions of a combustion engine are below 50 g/km;
- PLN 100,000 — when emissions are 50 g/km or more.
The limit also applies to the sale: when disposing of a passenger car from fixed assets, income is determined by comparing the sale price with the initial value only up to the limit, reduced by write-offs. For cars bought for more than the limit, the tax result of the sale is often higher than the difference between the price and the book value suggests.
Tax effects by form of taxation
Scale and flat tax
The sale of a fixed asset to the leasing company gives business revenue. The cost is the undepreciated part of the initial value (taking car limits into account). Later, operating lease instalments reduce income. Example: an entrepreneur on the flat tax sells for PLN 80,000 net an excavator with an initial value of PLN 200,000, depreciated by 70%. Income from the sale is PLN 20,000 (PLN 80,000 minus PLN 60,000 of undepreciated value), while the instalments will go into costs over the coming years. We write about whether the flat tax suits such a firm in the article on the flat tax.
Ryczałt
Under ryczałt, costs are not settled, so lease instalments do not reduce the tax. At the same time, the sale of a movable fixed asset to a leasing company is revenue taxed at 3% — in line with Article 12 of the Lump-Sum Income Tax Act. For a ryczałt taxpayer, sale-and-leaseback is therefore solely a loan secured by an item, and its cost is the sale tax plus interest. More on this form in the article on ryczałt.
VAT
An active VAT payer adds VAT to the sale price and deducts it from the instalments (for passenger cars used also privately — as a rule 50%). A sale price that is too low in a transaction with the lessor may attract the tax office's attention, so it is worth basing it on a market valuation.
When sale-and-leaseback makes sense
- Yes — when the firm has valuable, fully functional assets, needs cash faster than through a credit procedure, and the cost of financing is lower than alternatives.
- Rather not — when the item is almost fully depreciated and its sale will generate high taxable income, or when the firm uses ryczałt and will not benefit from the instalment as a cost.
- With care — for cars worth significantly above the limit and for contracts with a high initial fee.
It is also worth remembering effects beyond taxes. After the sale the item belongs to the financier, so its modernisation, letting someone else use it or taking it abroad may require their consent. Arrears in instalments give the lessor the right to terminate the contract and recover the item, which is not a risk with an ordinary unsecured loan. For cars, the insurance required by the financier must also be taken into account — it is often more expensive than the previous policy.
Before signing it is worth comparing the actual annual cost rate, checking the terms of early repayment, insurance and buyout, and calculating how the transaction will affect advance tax payments in the given year.
How Good Balance can help
We calculate the tax effects of sale-and-leaseback before signing, record the sale and instalments in the books and watch the limits for cars and VAT deductions. For companies and firms with larger fixed assets we offer handling as part of full accounting.