Enterprises in the aviation industry paid almost UAH 27 billion in taxes and fees to the budget in 2022-2025, despite the closed sky over Ukraine due to Russia's full-scale invasion. Now, civil aviation has come under pressure due to new approaches to taxing leasing operations of aircraft from non-residents of Ukraine. This was reported by the head of the State Aviation Service of Ukraine, Daniil Menshykov, writes UNN.
"It is also important to speak the language of facts: Ukrainian airlines continue to pay taxes. According to information provided by the State Tax Service, in 2022-2025, the industry paid almost UAH 27 billion in taxes and fees to the budget," – reported Menshykov.
He noted that he took part in a roundtable with representatives of the aviation industry regarding the situation around the taxation of leasing payments in civil aviation, which tax authorities have begun to interpret as royalties – without changing legislation and contrary to obligations to comply with international conventions.
"This approach creates risks not for an individual company, but for the entire aviation industry. Ukrainian airlines are already working under extraordinary challenges: the sky is closed, markets are lost or significantly limited, operational activities are complicated by war, issues of financing, insurance, and technical maintenance. Despite this, the industry has not stopped. It adapts, survives, and continues to work under extremely difficult conditions, demonstrating resilience that commands the respect of the entire world," – noted Menshykov.
He added that Ukrainian aviation did not ask for help from the state during the war, and the only thing the state can do now is not to hinder its work and not create additional legal uncertainty.
"Ukrainian airlines will be the first to enter the market after the sky opens. That is why we need clear rules for everyone. I am convinced that such issues should be resolved through professional dialogue between the state, business, associations, and the expert community. Unity of approaches, legal certainty, and decisions that take into account the strategic importance of aviation for Ukraine are needed," – summarized Menshykov.
Recall
As previously reported by UNN, the Bureau of Economic Security (BEB) is investigating a number of criminal proceedings against at least five Ukrainian airlines, including MAU, "Aviation Company Constanta", "Urga", "N3OPERATION" and "Skyline". These air carriers lease aircraft abroad from non-resident companies of Ukraine. The Bureau is convinced that the airlines should pay royalties in Ukraine, i.e., a fee levied for the use of intellectual property. At the same time, the fact that transport is not intellectual property is completely ignored, and Conventions on the avoidance of double taxation are in effect between Ukraine and a number of countries. According to these agreements, Ukrainian companies pay taxes specifically for leasing and in those countries where the lessor companies are residents.
It is on this legal construct, not supported by legislation, that criminal proceedings for tax evasion are based. However, the problem is that this position contradicts both international practice and court decisions that have already been formed in Ukraine.