Tax
6. Will the relevant law require any stamp duties or fees and/or documentary taxes to be payable upon the execution of any aircraft transaction documents in the relevant jurisdiction?
Austria
The Austrian Stamp Duty Act enumerates specific transactions which are subject to Austrian stamp duty provided that (i) as a general rule a written deed as defined in sec. 15 of the Austrian Stamp Duty Act (which term not only comprises the agreement itself but also encompasses certain other documents relating to the agreement) is set up and (ii) a certain connection to Austria as defined in sec. 16 of the Austrian Stamp Duty Act exists.
Brazil
There are no stamp duties. Certain documents must be registered and there are applicable registration costs and formalities.
Colombia
Article 519 of the Tax Statute establishes the national stamp duty in Colombia. It states that it will be caused on public instruments and private documents, as well as in securities, if they are granted in Colombian territory or abroad and if they are executed or generated within Colombia.
In addition, stamp duty will be caused on documents raised to public deed, except for documents related to the disposal of vessels. Article 25 of Decree 2076 provides that the concept of vessels encompasses larger vessels and aircraft. Therefore, the documents involved in the alienation of an aircraft shall not be subject to stamp duty.
For leasing contracts on vessels, Article 26 of Decree 2076 states that it will only be caused once the term of the contract has expired and the purchase option has not been used. When this happens, the value of the royalties paid until the expiration of the term of the contract will be settled for the tax basis.
Stamp duty in Colombia has a rate of 1.5% and Article 522 of Tax Statute determines the rules for establishing the amount on which that percentage will apply. The values must be canceled within Colombia and settled to the official change.
Colombian legislation provides some exceptions to stamp duty, in accordance with Article 530 of the Tax Statute.
Czech Republic
The Czech Republic does not levy any stamp duties, fees or any other taxes on aircraft transaction documents, apart from negligible administrative fees for registering the aircraft in the Czech Aircraft Registry, should such registration be part of the transaction.
Germany
There are no stamp duties or fees and/or documentary taxes payable in Germany.
Greece
(a) VAT would be relevant if the sale/purchase of the aircraft would involve a person registered for VAT in Greece; in such a case we refer to questions 1-5 above; there would be no VAT on the documentation itself, but rather on the respective «delivery of goods» (VAT is imposed on delivery of goods and/or rendering of services).
(b) Stamp duty could be triggered in case of a domestic sale of aircraft (located on Greek soil at the time of transfer) between private individuals, pursuant to a written agreement; in such a case (which would, in practice, be a very rare occurrence) the documentation itself would be subject to stamp duty, which is on principle a local documentary tax.
Israel
No, for the reason that no stamp duties or fees and/or documentary taxes are payable in this regard in Israel.
Italy
Generally speaking, if an aircraft transaction (e.g. sale/purchase, lease) is subject to VAT regime (i.e. business to business) then the registration tax levied by the Italian Tax Authority is equal to Euro 200, otherwise it is 3% of the purchase price.
Aircraft mortgage transactions are subject to Italian CAA fees (ranging from Euro 168 to Euro 1.392 depending on the secured amount), plus a registration tax levied by the Italian Tax Authority that is equal to Euro 200 if: (i) the mortgage is granted directly by the borrower to the lender; and (ii) no drawdown/utilization of the loan has occurred yet at the time when the mortgage is granted; otherwise a proportional registration tax could be applied.
Kenya
- Sale of aircraft
Please refer to our response to question 1 above.
- Mortgage of aircraft
Stamp duty of 0.1% of the amount secured by the mortgage is payable in the case of aircraft mortgages.
- Lease of aircraft
Nominal stamp duty of KES 200 (approximately USD 2) is payable by the lessee on a lease agreement in respect of an aircraft.
Mexico
No.
Nigeria
Yes. The Stamp Duties Act requires any agreement executed in Nigeria, or relating, wheresoever executed, to any property situated or any matter or thing done or to be done in Nigeria to be stamped and the appropriate stamp duty paid in respect of the said instrument.
a. An agreement may be stamped at either fixed rate or ad valorem (i.e. varied with the value of the instrument being stamped.)
Loan agreements are stamped at the rate of 0.125% of the loan amount and is payable by the Lender. A sale/transfer agreement will be stamped at the rate of 1.5% of the consideration amount and is payable by the seller.
Norway
There is no Norwegian stamp- or documentary taxes payable on aircraft transaction documents.
Panama
General stamp tax provisions of the Republic of Panama establish a tax of US$0.10 per each US$100.00 or fraction of value of the document or transaction applies to all contracts that do not have a special tax and that refer to acts that are subject to the Panamanian jurisdiction.
Documents that refer to matters that do not generate taxable income in Panama are exempt from the stamp tax, unless the documents are used or filed before Panamanian courts or administrative authorities, in which case, the stamp tax must be paid in order to present/use/file the document in Panama.
Accordingly, if the contract refers to a transaction that does not generate taxable income, then the stamp tax is paid only when and if the document is enforced in Panama or if any registration is required.
Peru
In order to formalize the document that contains any transaction regarding an aircraft, it must be notarized before any Notary Public; the cost is determined by the market and varies according to the Notary Public to which it is attended.
For the execution of the agreements contained in said documents, the Judicial Branch must be consulted in an executive process. The cost of the judicial process is governed by the judicial fees in force, which are updated annually.
The formalized document must be presented before Public Registries in order to be registered in the Aircraft Registry, for which registration fees calculated according to the type of transaction carried out must be cancelled.
Portugal
Only registration fees.
Puerto Rico
There are no PR stamp duties or documentary taxes on this type of transaction.
Romania
No
South Africa
- South Africa does not currently impose stamp duties
- Fee payable in respect of the de-registration of the aircraft in SA is R740.00, this fee is revised on an annual basis.
- No fee is payable for the recordation, registration or filing of a bill of sale.
- The following fees are payable on the registration of an aircraft:
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- Registration fee: R790;
- Amendment of a certificate of registration: R570;
- Issuing of a replacement certificate of registration: R570;
- Uplifting of a grounding: R790;
- Cancellation of a certificate registration: R790;
- Allocation of special registration marks: R2 830; and
- Re-allocation of aircraft registration marks: R2 830.
Spain
According to the Spanish Stamp Duty legislation, the registration of mortgages, reflected on public deeds, in the Commercial Registry or Moveable Assets Registry, are subject to Stamp Duty at a 0,5/1% rate of the value declared.
Under the Spanish Stamp duty legislation, the emission of promissory notes is taxed at a progressive rate of 0,018.-€ for each 6,01.-€ of the promissory note value.
Switzerland
There is no Swiss stamp tax payable on aircraft transaction documents.
United States (Miami)
There is a $5.00 USD registration fee due to the Federal Aviation Administration to register an Aircraft on the U.S. Registry. Some states require aircraft owners to register aircraft in the state of ownership. Additional registration costs may apply in these states.