Do tax authorities assess taxes, duties or other imposition in connection with any of the following events and, if so, at what rates and under what circumstances?
Argentina is a federal country and, consequently, three levels of imposition exist, i.e.: Federal, Provincial and Municipal. Sales, mortgages and lease of aircraft may be subject at each of these levels, depending on the transaction, the venue and the parties involved.
Income tax: This is a federal (national) tax. The abovementioned transactions may be subject to this tax if they are carried out by tax payers domiciled in this country. The tax will also apply if one of the parties is domiciled abroad, if it receives payments from the party domiciled in Argentina: in this case, withholding tax will apply to the former, who may be entitled to use same as a fiscal credit against income tax applicable in the country of its residence in accordance with its legislation. If the local tax payers are individuals, a progressive tax rate from 9% to 35% will apply. Corporations will pay 35%.
Argentina has signed bilateral agreements on air transport and also others to avoid double taxation with many countries (all the Americas, Europe, Middle East, Asia, Australia, etc.). In these cases, the applicable taxation and exemptions to same will be those resulting from those agreements.
Value Added Tax. This is another national tax which rate is 21% except in special cases where a lower rate is applied. In relation to this tax, it should be noted that sales, leases, import or manufacturing of aircraft for the transport of passengers and cargo, are exempted from VAT.
Gross Income Tax. This provincial tax also charged by the City of Buenos Aires. It applies to all those who carry out commercial activities on a regular basis. The rate of this tax will depend on the jurisdiction where the commercial activity is conducted, the average rate being 3.5%. Gross income from international air transport operations will be exempted if there is a reciprocity agreement in this respect with the country where the respective foreign carrier is incorporated.
Stamp Tax. This is another provincial tax charged also by the City of Buenos Aires. It levies agreements which are either executed within the territory of a province or which produce effects in it. The rate will depend on the jurisdiction where the instrument is executed and is quite similar throughout all jurisdictions. The applicable rate in the City of Buenos Aires is 0.80 %. Sales and leases of aircraft exclusively used for commercial purposes are exempted from stamp tax. However, should the lease contract include a purchase option in favor of lessee, this contract, as well as aircraft mortgages will pay the tax.
Import duties. They are charged for the importation of aircraft for sport and non-commercial activities. Importation of all other aircraft for air transport and any other commercial operation is free from duties.
Registration fees. Registration of contracts on aircraft with the National Aircraft Registry will be subject to payment of these fees in the case of sales (0.1 %), leases (0.3 %) and mortgages (0.3 %) in all cases on the total value of the contract.
Air passengers transport fees. Air passengers pay a fee for the use of airports from where they depart. Those fees currently are U$S 20.50 for domestic flights and U$S 41.50 for international flights.
Carbon Emissions: No charges apply.
DISCLAIMER: The above information should not be relied upon by the reader for legal advice as it is intended merely to serve as preliminary guide to the laws and regulations governing the taxation of aviation and aircraft in Germany. The information intends to provide summary-level information about certain tax issues affecting general aviation and aircraft finance. Since these materials are general in nature, readers are encouraged to obtain legal and tax advice from their own professional legal and tax counsel based on specific facts and circumstances regarding their acquisition and/or use of aviation and aircraft.