EBACE Convention News

Denmark–a tax haven until 2010?

 - May 20, 2008, 12:51 AM

Value Added Tax (VAT) and import duties for aircraft currently stand at zero percent in Denmark. This allows international operators to escape tax by basing their aircraft in Denmark. However, zero-rated VAT is in contradiction with European law and pressure is mounting on Danish legislators to adjust their taxes upward.

According to Lasse Rungholm, lawyer and CEO of OPM Aviation Services, a first attempt to amend Denmark’s tax law at the beginning of this year has been postponed until after the elections. A second attempt in April also failed and the law is now scheduled for introduction on Jan. 1, 2010. Until that date OPM offers assistance to aircraft buyers eager to avoid taxes.

Rungholm said the new law may be pushed back even further due to active lobbying by AOPA and influential aircraft operators. OPM is offering a newsletter to interested parties to keep them informed on the evolution of Danish tax legislation. OPM’s highly polished Zero VAT Beech 18 is on the static display.