Tax law

Favourable Danish VAT Regime for Aircrafts

Due to the Danish VAT rules with respect to aircrafts it may be favourable to purchase aircrafts such as business jets through a Danish company and subsequently lease out the aircraft to an operator or user in Denmark or abroad. A new Act will amend the current Danish rules. However, aircrafts may be imported to Denmark free of VAT until the new rules enter into force on 1 January 2010 and in many cases it will still be possible to reduce or entirely avoid payment of any Danish VAT. Kromann Reumert is experienced in setting up aircraft leasing structures in Denmark and may also assist with contacts to financiers and aviation assistance companies in order to provide the client with the best possible service.

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