Tax laws that affect business aircraft owners are constantly changing, and a new law this year makes the process of complying with these tax laws even more complex. Dean Sonderegger, director of product management at Bloomberg BNA Software, explained the new law and how his company’s software helps owners keep track of tax implications to ensure that they meet the legal requirements and don’t pay more tax than is necessary.
Financing, Insurance and Taxes » Taxes
Tax issues for aircraft operators.
Fiduciary services specialist Equiom, based in the Isle of Man with offices in Jersey and Malta, is at EBACE (Booth 625) to highlight its range of services for aviation clients and its new customs warehousing service. Equiom’s offerings include ownership structuring and multi-jurisdictional VAT, tax and registration services. The company said it specializes in creating bespoke solutions to meet exact client needs, and EBACE provides an excellent face-to-face meeting point.
The San Marino Aircraft Registry (Chalet B14) has announced that 63 Dubai-based aircraft have joined since its opening 11 months ago. The organization touts the confidentiality it guarantees to owners, as well as the fiscal flexibility as to which jurisdiction their taxes are attached to. Moreover, the San Marino “T7-” registration mark is said to be politically neutral.
NBAA has released an updated version of its Federal Excise Taxes Guide: Details on Air Transportation and Fuel Taxes. Last published in 2005 as the NBAA Federal Excise Tax Handbook, the new guide includes areas that have seen changes–such as the application of FET on fractional aircraft ownership operations; IRS legal interpretations regarding aircraft service and pilot service agreements; and reimbursement under the “Schwab re-interpretation,” based upon the latest information from the IRS, and other sources.
NBAA released its new Federal Excise Taxes Guide late last week, marking the first time the guidelines have been updated since 2005. It is intended to provide business aircraft owners, flight departments and charter operators with a basic understanding of the federal excise taxes (FET) that apply to business aircraft activity.
The Bahamas government has instituted new private aviation tariffs consisting of a $50 per landing and departure fee for private aircraft and $75 per landing and departure fee for commercial operators. The landing charges are also imposed for technical fuel stops. The new fees took effect last week. In addition the passenger departure tax was recently raised to $25 per person, including children older than 6.
NBAA has issued a new resource about the net investment income tax (NIIT), having now fully reviewed the U.S. Treasury Department and IRS regulations on this tax, which was enacted as part of the 2010 healthcare overhaul. Beginning this year, the law imposes a 3.8-percent tax on the investment income of certain individuals, and it will affect many common airplane leasing arrangements, NBAA said.
The U.S. Internal Revenue Service has agreed to suspend possible tax assessments against aircraft management companies now undergoing federal excise tax (FET) audits.
Aircraft operations in Indiana are about to become more affordable after state legislators approved a slate of aviation tax exemptions and restructurings. The measures, adopted at the urging of the Aircraft Owners & Pilots Association (AOPA) and other aviation groups, remove state sales tax on jet fuel and 100LL avgas and restructure the previously existing excise tax on aviation fuel to a fixed total state tax rate.
Aviation finance and consulting firm Conklin & de Decker (Booth No. N3525) marked the opening of Heli-Expo ’13 with the introduction of its latest general aviation tax resource. The company also unveiled a new educational seminar.
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