The paper discusses the conditions for development of leasing in Poland, by analysing the economic issues around this form of finance in the light of the current tax law.

The following specific issues are addressed: the development of leasing in Europe and in Poland, the advantages of leasing as a mode of financing expenses over loan and classic lease or rent, the threats the lessor is exposed to, the positive influence upon the economy as a whole, and finally ways to overcome hurdles to the growth of leasing.

The overview of the development of leasing is illustrated with statistical data concerning the market of movables and real estate leasing in Europe in 2000. The indices relating to this type of financing for the period have also been presented, with a particular focus on their level in Poland.

As regards the potential threats, various types of fraud observed are presented, as well as any possible departures from the legally accepted procedures.

The next issue is the barriers to the development of leasing in Poland and ways to overcome them. The author concentrates on current tax regulations, as taxes are a very important element of the costs and affect the financial result of both parties to the lease. The particular taxes addressed are the income tax and VAT. This part of the paper also presents the figures illustrating the status of the leasing market in Poland 1999-2001, together with additional information on the problems the leasing companies have been facing recently.

The paper is complemented with tables and graphs. In writing the article, the author used her own experience acquired in the course of work for the BA-Creditanstalt Leasing Poland company in Warsaw, as well as a variety of public sources (legal acts, publications on the subject, newspaper and magazine articles, annual reports on the leasing activity in Poland, promotional material and the Internet).