The Ministry of Finance confirmed that it is working on the issue of taxing aircraft leasing
Kyiv • UNN
The Ministry of Finance is working on the taxation of lease payments to non-residents for aircraft and helicopters.
The Ministry of Finance of Ukraine is reviewing the issue of taxing leasing or rental payments for providing aircraft for use to non-residents. This is stated in the Finance Ministry's response to a request from UNN.
Why did the problem with aircraft leasing arise?
As UNN previously reported, since 2024 the Bureau of Economic Security has begun interpreting aircraft leasing operations involving non-residents of Ukraine as the use of equipment. According to the investigators' version, Ukrainian air carriers were supposed to pay royalties for the rental of airplanes and helicopters. Based on this approach, the BES opened criminal proceedings against at least five air carriers, including MAU, "Constanta Airlines," "Windrose," H3Operations, and "Skyline Express." According to UNN, another airline — "Urga" — may also figure in a similar case.
The criminal cases were opened despite the fact that almost all air carriers had successfully undergone tax audits, and the tax authorities had raised leasing-related objections against only one company.
Representatives of the aviation industry insist that the problem arose because of an ambiguous interpretation of the legislation and that it requires the development of a unified state approach.
Earlier, in response to a request from UNN, the Ministry of Finance reported that the taxation of aircraft leasing operations is carried out in accordance with the Tax Code and Ukraine's international treaties. At the same time, the Tax Code of Ukraine does not provide for the possibility of taxing aircraft leasing as royalties.
Therefore, representatives of the aviation industry call the Bureau's approach to interpreting aircraft leasing, without changes to the tax legislation, pressure that could destroy the entire passenger and freight transportation industry. According to data from the State Register of Civil Aircraft of Ukraine, 86% of Ukrainian companies' aircraft fleet is leased.
To resolve the situation, the issue of aircraft leasing was submitted for consideration by the tax committee of the Public Council under the Ministry of Finance. Following the first meeting, it was decided to initiate the establishment of a working group at the Finance Ministry, which is to develop a draft general tax consultation on the taxation of leasing payments made to non-residents.
The Finance Ministry is already reviewing the issue of aircraft leasing
The Finance Ministry reported that the working group on this issue has not yet been established. However, the ministry has begun reviewing the taxation of operations involving the leasing of airplanes and helicopters from non-residents.
At the same time, the Finance Ministry is reviewing an issue concerning not the regulation of the leasing market in general, but the application of the provisions of the Tax Code of Ukraine and Ukraine's international treaties on the avoidance of double taxation to income received by non-residents in the form of leasing or rental payments for providing aircraft for use
The ministry plans to prepare a general tax consultation that will become a unified approach to the taxation of the relevant operations.
According to the Finance Ministry, consideration of issues concerning the application of Ukraine's international treaties on the avoidance of double taxation to income received by non-residents is coordinated by the Department of International Taxation. The application of the provisions of the Tax Code of Ukraine to aircraft leasing is coordinated by the Department of Tax Policy.