Dáil Éireann Debate, Wednesday - 6 May 2015
130. Deputy Pearse Doherty asked the Minister for Finance if he will provide, in tabular form, the full details of tax reliefs and incentives available specifically to the aircraft leasing industry; when each measure was introduced; the cost to the Exchequer of each provision; and the total cost. [17312/15]
View answerI am advised by the Revenue Commissioners that there are no specific tax reliefs for the aircraft leasing industry. However, information is available on tax payments from the industry for 2005 to 2014. (See table).
The following tax treatment applies to the industry:
Corporation Tax
A company carrying on a trade of aircraft leasing would, similarly to any other company carrying on a trade, be charged to corporation tax in respect of its trading income at a rate of 12.5%. When computing its profits for an accounting period, any company is entitled to claim capital allowances in respect of the wear and tear on plant and machinery owned by it and in use for the purposes of its trade at the end of that accounting period. In the case of an aircraft leasing company, this means that the company could claim a capital allowance in respect of the cost of acquiring the aircraft. The allowance is granted over a period of 8 years at a rate of 12.5% per annum.
Stamp Duty
The sale, transfer or other disposition of an aircraft is exempt from Stamp Duty as is the issue, transfer or redemption of an "Enhanced Equipment Trust Certificate". These certificates are a mechanism by which leasing companies raise the necessary finance to acquire aircraft for their leasing fleet.
VAT
Irish VAT is not charged on lease payments in respect of an aircraft where the aircraft is effectively used wholly outside the EU. The leasing of aircraft to qualifying international airlines is subject to VAT at the zero rate.
Cost to the Exchequer
There is no overall costing of the value of the Stamp Duty exemption referred to above. The sector is in a net repayment position in respect of VAT as a result of the zero rating of services.
Tax Payments from the aircraft leasing sector 2005 to 2014
|
|
VAT* |
Employer's PAYE |
Income Tax |
Corporation Tax |
Capital Gains Tax |
Total |
|
|
€m |
€m |
€m |
€m |
€m |
€m |
|
2005 |
-6 |
9 |
0 |
4 |
0 |
7 |
|
2006 |
-10 |
12 |
0 |
8 |
0 |
10 |
|
2007 |
-13 |
16 |
1 |
27 |
1 |
32 |
|
2008 |
-11 |
24 |
0 |
22 |
0 |
35 |
|
2009 |
-19 |
21 |
0 |
19 |
0 |
21 |
|
2010 |
-16 |
25 |
0 |
16 |
0 |
25 |
|
2011 |
-19 |
32 |
0 |
20 |
0 |
33 |
|
2012 |
-22 |
37 |
0 |
36 |
0 |
51 |
|
2013 |
-16 |
51 |
0 |
29 |
0 |
64 |
|
2014 (provisional) |
-15 |
55 |
0 |
23 |
0 |
63 |
*The Aircraft Leasing Sector was in a net repayment position in respect of VAT for each year.
