Aviation companies in Malta and the aviation industry as a whole are regulated under the Aircraft Registration Malta Act, 2010 which first came into force on 1st October 2010. The Act’s main aim seeks to regulate the registration of aircraft and implement the Cape Town Convention within Maltese legislation. Malta has experienced a significant growth in the aviation industry and has firmly established itself as an aviation centre of note.
Malta aircraft registration is popular as Malta is within the EU and also has a number of attractive benefits. These include an attractive corporate tax system for aviation companies, recognition of fractional ownership, local availability of aviation companies’ services and the development of strong finance and leasing arrangements within the aviation industry in Malta.
Aviation management – services
The Malta tax system provides for a number of aviation tax planning opportunities for those seeking to set up private aviation companies. Malta also has a network of established double tax treaties with just under 70 countries offering a number of tax planning opportunities. As a result, the aviation industry in Malta has seen a number of large and smaller aviation companies either incorporate in Malta or relocate their aviation companies to Malta over recent years.
Aviation Management Tax Planning
Other aviation tax planning opportunities include the aircraft leasing VAT programme, which seeks to reduce the VAT burden for those wishing to purchase an aircraft or aircraft engines for private use. The programme is centred on an aircraft leasing agreement being established and the Malta VAT department establishing via a formula the amount of time the aircraft spends in EU airspace and applying it to the lease proportionally. If all conditions are met the effective rate of VAT can be reduced to a possible 5.4%.
Please contact us for more information on how we can help you with your aviation business take advantage of the many attractive tax planning opportunities available in Malta.
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Malta Aircraft Registration
Aviation Tax Planning
Aircraft Leasing VAT Programme