Lease Q&A

Most devices and equipment such as telecommunication equipment, office automation equipment, computers, manufacturing equipment, medical equipment, and transportation equipment.

The leasing fee includes expenses such as the price of the property, insurance, property tax, and the interest rate and is calculated under the premise that the total cost of these fees will be paid evenly over the lease term.

For more information, please contact the NTT TC Leasing sales team.

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The lease term is usually set to between two and six years based on the customer's request. However, the appropriate lease term for tax purposes is set in line with the legal service life in years as explained below.

(This does not apply to operating leases. For details, please contact NTT TC Leasing's sales team.)

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Appropriate setting of lease terms for tax purposes

• If a property's legal service life is less than 10 years, the lease term is calculated by multiplying the legal service life x 70% or more.
• If a property's legal service life is 10 years or longer, the lease term is calculated by multiplying the legal service life x 60% or more.

(Lease terms will be rounded down to the nearest year.)

The ownership of a leased property will belong to the leasing company (NTT TC Leasing).

As the ownership of the leased property belongs to the lessor, NTT TC Leasing will handle everything, from declarations to payments.

Customers will be responsible for managing and maintaining a leased property. Although damages within the scope of the insurance policy can be covered up to a certain degree, any other repair costs will in principle be the responsibility of the customer to cover.

Leased properties (excluding software) come with general insurance. The scope and validity of the insurance are as follows.

Scope of insurance

Insurance money is granted when a leased property is damaged due to a fortuitous and external accident. Damages caused by the factors described below are covered by insurance.

Damage and loss due to an earthquake, volcanic eruption, or misplacement are not covered by insurance.

Validity of insurance

Insurance will last from the start date of a lease through the period in compliance with the lease term. However, this does not apply in the case of re-leased properties. 

Finance lease contracts cannot be canceled midway. However, customers who find that they need to cancel a lease due to unavoidable circumstances can return the leased property and pay the prescribed damage compensation (cancellation) fee.

Contracts for operating leases can potentially be canceled. (For details, please contact NTT TC Leasing's sales team.)

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When a lease expires, customers can choose to return the leased property to NTT TC Leasing at their own cost, or to re-lease the property. For finance leases, the cost of the re-leasing fee is minimal, at 1/10 of the annual leasing fee. The annual re-leasing fee is paid in advance and can be renewed on a yearly basis. (For operating leases, this will depend on the separate conditions of the contract.)