Ireland is one of the leading locations in the world for all forms of aircraft finance and leasing activities. This is due to the very favourable tax environment including, in particular, a low 12.5% rate of corporation tax on trading profits, coupled with beneficial tax depreciation and interest deductibility rules, and access to an extensive network of treaties which can eliminate foreign tax on lease rentals.
This update also highlights an alternative efficient corporation tax treatment introduced in 2011 which may be applicable to lessors in certain cases. Ireland also has a long and successful tradition in the aviation industry with the required skills, knowledge and expertise located in Ireland.
