Aircraft lessors favored
Print Edition
Aircraft leasing companies operating in Shanghai’s pilot free trade zone have been granted preferential tax policies, the Ministry of Finance said yesterday.
A 5 percent value-added tax rate will be levied on businesses involved in importing aircraft with a capacity over 25 tons and leasing to domestic firms, compared with a 17 percent rate imposed on the general business of leasing companies.
The policy, previously applicable to airlines, is now extended to leasing companies or subsidiaries registered in the FTZ which opened on September 29.
Li Ling, general manager of Bank of Communications Financial Leasing Co’s aviation leasing division, welcomed the lower rate.
The company is planning to launch a subsidiary specializing in aircraft and ship leasing in the FTZ by the end of this year, a move seen to spearhead its overseas development.
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