14-Jun-2019 8:05 AM

Russia's Prime Minister: Proposed tax law changes to expand Russia registered civil aircraft fleet

Russia's Prime Minister Dmitry Medvedev announced (13-Jun-2019) proposed changes to the tax law are expected to expand the fleet of civil aircraft registered in Russia. A draft bill was prepared proposing the amendments. Mr Medvedev said: "Today Russian airlines deploy a significant share of foreign aircraft and they are registered overseas. We intend to correct this situation. The draft bill proposes to exempt the import of civil aircraft from value-added tax (VAT) on condition of registration in the Russian register". Mr Medvedev added Russia also plans to enhance support measures for the domestic aircraft manufacturing industry with plans to introduce VAT exemptions for the import of aircraft engines, spare parts and components required for testing of civil aircraft. Mr Medvedev added VAT could also be removed for the sale and lease of aircraft registered in Russia. Mr Medvedev said a transition period for aircraft registered abroad and being reregistered in Russia applies until 01-Jan-2023. [more - original PR - Russian]

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