Uniform tax rules for aircraft leasing should help resolve existing disputes — Katamadze
Kyiv • UNN
The Ministry of Finance has an instrument in the form of a tax consultation for the possible resolution of disputes over the taxation of aircraft leasing for previous years.
When preparing a general tax consultation on the taxation of aircraft leasing, the Ministry of Finance of Ukraine should take into account not only future transactions, but also create conditions for resolving existing disputes between airlines and law enforcement agencies. This will make it possible to establish a unified approach to the taxation of lease payments for aircraft. Hryhol Katamadze, president of the Association of Taxpayers of Ukraine, expressed this opinion in an exclusive comment to UNN.
Details
The Ministry of Finance now has an opportunity to take an important step toward business — to use the instrument of a general tax consultation not only to determine the rules for taxing aircraft leasing in the future, but also to consider situations that arose earlier. Within the scope of its powers, the Ministry of Finance can establish in the consultation a clear approach to applying tax rules to transactions from previous years that have already become the subject of disputes. The tax system should be predictable: companies must understand the rules under which they operate and be able to plan their activities. After all, if the state seeks to create favorable conditions for doing business, it must not only establish rules but also help eliminate legal uncertainty where it has already led to conflicts between businesses and government agencies. This concerns not only the aviation industry but also a general principle: tax rules should be clear, consistent, and the same for everyone
How disputes over aircraft leasing arose
The issue of taxing lease payments by Ukrainian airlines to nonresidents became the subject of a dispute after the Economic Security Bureau began interpreting such payments as royalties in 2024. This approach served as grounds for opening criminal proceedings against at least five airlines.
Representatives of the aviation industry dispute this interpretation and point to the need for a unified approach to applying the Tax Code of Ukraine and international treaties on the avoidance of double taxation.
What instrument does the Ministry of Finance have?
To resolve the situation, businesses appealed to the Ministry of Finance. The ministry confirmed that it is working on the issue of taxing lease and rental payments for aircraft made to nonresidents. After receiving and analyzing practical cases involving airlines, the Ministry of Finance plans to prepare a draft general tax consultation.
According to Hryhol Katamadze, when preparing this document, it is important to consider the application of the relevant rules to transactions that have already become the subject of a dispute.
In this situation, the Ministry of Finance has an instrument that allows it not only to clarify the rules for taxing aircraft leasing in the future, but also to clearly define in a general tax consultation its approach to transactions from previous years that have already become the subject of disputes. Disputes over aircraft leasing did not arise today — they concern transactions from previous years and have already had specific consequences for businesses. Therefore, within the scope of its powers, the Ministry of Finance should clearly explain the application of tax rules to such transactions, including with regard to the legislation and international treaties in force at the time the payments were made. This will help establish a legal basis for considering existing disputes
A general tax consultation does not mean the automatic termination of criminal proceedings; rather, it is an instrument through which the Ministry of Finance explains the practical application of tax legislation in situations where its provisions allow for ambiguous interpretation. Its possible impact on existing disputes will depend on the content of the explanations, the circumstances of specific cases, and the legal mechanisms that may be applied.
Therefore, when preparing the consultation, it is important to take into account practical examples from airlines, the positions of businesses, and the specific features of international treaties on the avoidance of double taxation. This will make it possible to formulate a consistent position for the state, create a basis for the legal settlement of disputes that have already arisen, and reduce the risk of similar conflicts recurring in the future.