Frequently Asked Questions

Frequently Asked Questions About Leasing

Is there a currency risk in leasing?

In cases where the seller's payments and the lease payment schedule are in different currencies, the payment schedule is fixed based on the exchange rate on the day the seller's payment is made, and no currency risk arises thereafter.

 

Can expenses and insurance premiums be included in the financing and spread over the lease payments?

Import expenses (customs, bank, transportation insurance, special permits or registration expenses related to the goods); incentive transfer expenses, notary management expenses and similar expenses may be paid in advance at the request of the lessee or spread over the lease payments. Insurance premium payments may also be spread over the lease payments.

What collateral can be requested in leasing transactions?

Although leasing is essentially the rental of an asset, it is a credit-like transaction. Therefore, the following collateral may be requested based on an assessment of the lessee's financial structure and the characteristics of the investment asset.

  • Guarantee of company partners
  • Guarantee of another company or individual
  • Promissory note
  • Letter of guarantee
  • Pledge of securities or deposit blockage
  • Real-estate mortgage
  • Real customer check
  • Other (deposit, down payment, buy-back agreement, etc.) 

Can incentivized investments be subject to leasing transactions?

Investments covered by incentive certificates may also be subject to leasing transactions and benefit from exemptions and advantages. 

Is insurance mandatory in leasing transactions?

Pursuant to Law No. 6361, it is mandatory to insure the leased assets for the entire duration of the contract to cover all risks. Insurance premiums are paid by the lessee.

How is the payment plan determined?

The lease plan can be structured flexibly depending on the characteristics of the sector in which the lessee operates, the lessee's cash flow, and the feasibility of the project.

Can lease plans include variable payments?

In general, lease payments are fixed; however, upon customer request, a variable lease plan may also be offered. In such cases, lease amounts are revised based on periodic increases or decreases in a reference index value.

What is the property transfer period?

Pursuant to the Financial Leasing, Factoring, and Financing Companies Law No. 6361, the minimum transfer periods applicable to leasing transactions have been abolished as of December 13, 2012.
For leasing contracts entered into prior to this date, the minimum term of a financial lease agreement, which was four years, may be less than four years but not less than two years for assets whose technological nature or economic use and operating period render their use shorter than four years.
We kindly request that you contact our customer representatives to learn about the minimum transfer periods for leasing transactions conducted prior to December 13, 2012.

What should be done if the leased property is damaged?

The relevant insurance company should be contacted as soon as possible to open a damage claim file.

VAT in Leasing

The VAT rate for leases and deliveries covered by “financial lease agreements entered into after the publication date of this decision” has been set at 1% for machinery and equipment falling under the category specified in the decree issued by the Council of Ministers on December 27, 2011, and published in the Official Gazette on the same date.

Pursuant to this decision:

  • The VAT rate applicable to all financial lease transactions conducted under an investment incentive certificate shall be 1%, regardless of the HS code numbers or whether the items are new or used.
  • For machinery and equipment (excluding used items, parts, accessories, and components) specified under Article 17 of the decision with their HS code numbers are indicated, the VAT rate applicable to financial leases is 1%.
  • The goods listed in these schedules must be unused. If used, no discount applies, and the VAT rate will be the rate applicable prior to this decision. The VAT rate applicable to parts, components, accessories, and spare parts is 20%.
  • These goods must be leased by financial leasing companies to income and corporate tax payers who are exempt from VAT but are not VAT payers, as the VAT liability is transferred to the lessor.

For all machinery and equipment not listed in the annex to the decree published in the Official Gazette, the VAT rate for normal purchases remains at 10% or 20% depending on the equipment. Some of the equipment whose VAT rate has been reduced to 1% according to the HS Code classification specified in the decree can be found in the list below. 

Electric motors and generator equipment, electrical energy production groups, and rotary electrical converters, electrical transformers, static converters, and inductors

HS CODE NO 85.01 /85.02/ 85.04 examples:

  • Miniature (AC/DC) motors for toys
  • Motors and generators for aircraft (AC/DC)
  • Electric motors
  • DC motors and generators for aircrafts
  • Generators with power up to 750 W
  • Generators and motors for civil aircrafts
  • Traction motors
  • Diesel/semi-diesel electro-generator sets for aircrafts
  • Other diesel/semi-diesel electro-generator sets
  • Spark-ignition piston electro-generator sets for aircrafts
  • Inductors for aircrafts (with or without a capacitor)
  • Inductors (with or without a capacitor)
  • Balances for discharge lamps/tubes for aircraft
  • Liquid dielectric transformers, power
  • Voltage measuring transformers, power
  • Transformers for toys, power
  • Ferrite core transformers, power
  • Starting motors
  • Uninterruptible power supplies
  • Stabilized power supplies
  • Static converters for aircrafts
  • Reducers

For detailed information: (212) 350 74 00

Mining machinery and equipment

HS CODE NO 84.74 examples:

  • Mining ore classification, separation, screening, and washing machines
  • Rock crushing machines
  • Machines specifically designed for mineral materials used in the ceramics industry
  • Concrete or mortar mixers
  • Machines specifically designed for mixing mineral materials with bitumen
  • Devices specifically designed for mixing mineral materials used in the ceramics industry
  • Devices for agglomerating, molding, or shaping ceramic dough
  • Machines for making sand casting molds (core machines)
  • Machines and devices for making tiles, bricks, or blocks
  • Machines and devices for making concrete blocks
  • Machines and devices for other types of stone, soil, metal ores, etc.

Machines and equipment for soldering and welding

HS CODE NO 84.68 examples:

  • Hand-held soldering irons
  • Welding equipment for thermoplastic materials using gas
  • Other machines and equipment using gas   

Textile dyeing, finishing, and processing machines and equipment

HS CODE NO 84.51 examples:

  • Dry cleaning machines
  • Domestic dryers - dryers
  • Other dryers - dryers.
  • Electric irons - power
  • Electric presses - power
  • Electric irons - power > 2500 W.
  • Electric presses - power >2500 W.
  • Non-electric ironing machines
  • Non-electric presses
  • Industrial washing machines
  • Bleaching machines
  • Dyeing machines
  • Machines for winding textiles into rolls
  • Machines for cutting textiles into shapes
  • Machines for opening, folding, and cutting textiles
  • Machines for coating textiles with paste in the manufacture of linoleum, etc.
  • Sizing and finishing machines
  • Other machines for winding, opening, folding, cutting, or shaping textiles into rolls

Machines and equipment for cleaning, sorting, or separating seeds, grains, and dried legumes

HS CODE NO 84.37 examples:

  • Machines and equipment for cleaning, sorting, and separating seeds, grains, and dried legumes
  • Machines and equipment for grinding and processing grains
  • Machines and equipment for grinding and processing dry legumes
  • Other grinding machines and equipment—excluding those used in milling
  • Rolling pins

Other machines and equipment for field and garden agriculture, forestry, poultry farming, or beekeeping

HS CODE NO 84.36 examples:

  • Machinery and equipment for preparing animal feed
  • Machinery and equipment for hatching and rearing chicks
  • Automatic equipment for feeding chickens
  • Mechanical machinery and equipment for inspecting eggs
  • Machinery and equipment for plucking chickens
  • Other machinery and equipment for poultry farming
  • Machinery and equipment for forestry

Milking machines and machinery and equipment used in dairy farming, presses for the production of wine, cider, fruit juices, or similar beverages

HS CODE NO 84.34/ 84.35 examples;

  • Milking machines
  • Machinery and equipment for butter production (excluding cream separators)
  • Machinery and equipment for cheese production
  • Other machinery and equipment used in dairy farming
  • Parts and components of machinery and equipment used in dairy farming
  • Grape presses
  • Presses for extracting fruit juices
  • Other machinery and equipment used for wine, fruit juices etc. purposes   

Machinery and equipment for harvesting and threshing agricultural products, machinery and equipment for mowing grass and meadows; machinery and equipment for sorting and cleaning eggs, fruits, and other agricultural products according to weight and size

HS CODE NO 84.33 examples;

  • Electric motor-powered, horizontal cutting lawn mowers and equipment
  • Self-propelled, seated, non-seated, horizontal cutting lawn mowers and equipment
  • Non-self-propelled horizontal cutting lawn mowers and equipment
  • Electric motor-powered other lawn mowers and devices
  • Self-propelled, seated, non-seated other lawn mowers and devices
  • Non-self-propelled other lawn mowers and devices
  • Motorless, motorized lawn mowers and equipment
  • Tractor-mounted horizontal cutting grass mowers
  • Combine harvesters
  • Stalk threshing machines
  • Potato harvesting machines
  • Beet head cutting and harvesting machines
  • Peanut harvesting machines
  • Self-propelled silage machines
  • Other silage machines
  • Machines and devices for sorting fruits and vegetables by weight and size
  • Egg cleaning and washing machines and devices      

Machines and devices used in field and garden agriculture or forestry

HS CODE NO 84.32 examples:

  • Plows
  • Disc harrows (disk harrows)
  • Scarifiers
  • Cultivators
  • Harrows
  • Soil tillers (rotovators)
  • Fertilizer-applied cultivators
  • Other cultivators
  • Harrow-equipped rollers
  • Center-driven pneumatic or mechanical precision seeders (seed drills)
  • Single-seed planting machines
  • Bulb, seedling, and sapling planting machines
  • Fertilizer application machines and devices for mineral or chemical fertilizers
  • Cylinders for lawns and sports fields
  • Stone removal machines. Harvesting machines
  • Other machines and devices for field and garden agriculture    

Construction equipment

HS CODE NO 84.29 examples:

  • Palletized bulldozers
  • Palletized angledozers
  • Non-palletized bulldozers
  • Non-palletized angledozers
  • Graders
  • Machines for leveling soil
  • Scrapers
  • Vibratory, rubber-wheeled road rollers
  • Vibratory, non-rubber-wheeled road rollers
  • Non-vibrating road rollers
  • Rubber-tired underground excavators, front-end loaders
  • Non-rubber-tired underground excavators, front-end loaders
  • Other front-end loader excavators with rubber wheels for underground use
  • Other front-end loader excavators without rubber wheels for underground use
  • Other front-end loader excavators with tracks for other uses
  • Other front-end loader excavators with rubber wheels capable of digging soil for other uses Loader excavators
  • Other front-end loaders capable of digging soil, not on wheels
  • Other front-end loaders with wheels
  • Other front-end loaders without wheels
  • Palletized excavators
  • Other machines and equipment with a 360-degree rotating tower and rubber wheels
  • Other machines and equipment with a 360-degree rotating tower and non-rubber wheels
  • Backhoe-loaders
  • Other excavators capable of digging soil
  • Other mechanical excavators. Excavators and excavator loaders

Required Documents

Certificates

  • Application Form (to download the application form click here)
  • Balance sheets, income statements, and latest year-end financial statements for the last two years
  • Current interim financial statements and latest income statement
  • Original list of authorized signatories (not older than one year)
  • Commecial Registration Gazette of Turkiye (including establishment and partnership changes), activity certificate, and copies of tax registration documents
  • Copies of identity cards of company partners and guarantors, residence certificates (not older than 6 months), signature declarations, and copies of tax identification cards
  • Newly issued authorization certificate from the Commercial Registration Office where the company is registered
  • For sole proprietorships, a copy of the owner's identity document; for capital companies, copies of the partners' identity documents and the company's deed of title
  • A proforma invoice issued by the seller on behalf of İş Financial Leasing A.Ş., including the applicable VAT rate for the equipment to be leased (to access our invoice details click here.)
  • If it is related to an investment incentive certificate, a copy of the incentive certificate

Information Forms

For detailed information about your application for financial leasing services and the personal data processed in connection with the provision of such services, please refer to the Information Notice on the Processing of Personal Data within the Scope of Financial Leasing Processes.

Financial Leasing Agreement

Information Form

Protection of Personal Data

Protection of Personal Data

Protecting fundamental rights and freedoms, including the privacy of private life, and ensuring the security of personal data in the processing of personal data are among the top priorities and objectives of İş Finansal Kiralama Anonim Şirketi. In this context, you can access our process-based information notices, policies, and relevant data subject request form, which provide detailed information about the processing of your personal data, below.