The new Aircraft Registration Act (2010) has waved away some unnecessary national requirements in regards to the registration of private aircrafts and business jets. There are several interesting fiscal incentives available, and various Maltese Government departments are proving Malta to be on the EU` s best regulated and most tax efficient jurisdiction for the aviation business in general. Since the amendments, Malta has already attracted several international carriers and business jets to operate from Malta (see list here) and furthermore established successfully aircraft maintenance companies like Lufthansa Technik and SR Technics with several hundreds of employees. The Maltese government currently completes an entire Aviation Park to host premises and ancillary services for new and promising aviation companies, the education departments have taken care of providing all necessary courses to lead to the required qualifications for the local workforce. SSCI has locally teamed up with the most experienced partners in this field, to provide you with state of the art service as a one-stop-shop, from the qualified business advice regarding international most efficient structure to the company formation and administration up to the choice of your local operator, technical issues and all related registration requirements. Here some interesting fact at a glance:
Why register an aircraft in Malta ?
Aircraft can be registered by a natural or judical person, including trustees, not only when ready, but already under construction, as soon as it is readily identifiable, opening better financing opportunities.
Rather than promoting a confidential registry, the Maltese Government establishes a reputable aircraft registry with full confidence under the Maltese flag. Like all registries in Malta, the aircraft registry is public and accessible online.
Fractional ownership is made possible via the split into more than one shares of the registered aircraft or its parts, all registered in the public registry.
Any income deemed to arise outside Malta when derived from an ownership, operation or leasing of an aircraft engine fuselage or engine when used for international transport of passengers and/or goods, and will be exempt from Maltese tax, except being remitted to Malta. This applies irrespective of the country of registration, of the said fuselage, or aircraft engine or weather the aircraft may have called at or operated from any airport in Malta.
When an aircraft company transfers its tax residence to Malta, it will automatically benefit from this presumption at law. Foreign shareholders of Maltese registered Aviation companies benefit from an extensive network of double taxation agreements and the full tax imputation system.
Foreign undertakings registering an aircraft, are obliged to appoint a licensed Maltese Agent to handle all affairs in Malta.
The aircraft can act as a security for a debt or other obligation under certain conditions. Mortgages on certain parts, or the aircraft as a hole will be registered and are under special protection in case of a bankruptcy.
Malta signed, ratified and fully adapted the Cape Ton Convention, protecting creditor rights.
The deductions of wear and tear of plant and machinery equipment which were originally 12 years have been reduced to, 6 years on Aircraft airframe 6 years on the Engine, Engine or Aircraft overhaul 6 years, Interiors and other parts 4 years. This allows to take the deductions against income much faster than before.
Supply of aircraft for the use of the airline, or international transport of passengers and /or goods and intra community acquisitions or importation of aircraft is exempt from VAT.
Employees, directors, shareholders and officers of an aircraft company will be exempt from the fringe benefit legislation resulting from the private use of the aircraft.
No withholding tax on lease payments and interest, as long the aircraft is used for the international transport of goods and passengers
Furthermore the Maltese Authorities have published guidelines for the tax treatment of finance leasing of the aircraft offering different interesting opportunities of intelligent international tax planning under clear rules and therefore fully acknowledged by all European Authorities.
For further information kindly contact us