Brazil: government cuts income tax for aircraft rentals


The measure published in the Official Journal reduces the fees collected by the IRRF on the rental of planes and engines from this year.

The maximum duration of the reduction authorized by law, i.e. 5 years. The measure directly benefits airlines, indirectly impacting the entire tourism production chain and ensuring the sustainability of thousands of jobs.

The withholding tax rate (IRRF) on aircraft leasing will be reduced from 15% to 0 over the next 2 years. From 2024, prices will gradually increase by 1% per year. That is to say, it will be 1% in 2024, 2% in 2025 and 3% in 2026.

“This achievement closes with a golden key a year marked by challenges, but also by victories which have ensured the resumption of tourist activity throughout the country. This was only possible thanks to working in synergy with the Ministries of Infrastructure and the Economy and the undisputed support of President Bolsonaro, who believes in and supports tourism. I couldn’t be more confident this year, ”Tourism Minister Gilson Machado Neto said.

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The state is reducing the operating costs of the airline sector, helping to maintain businesses and jobs in the tourism sector and to revive tourism.

For the Brazilian Association of Airlines (ABEAR), the measure will allow the permanence of 95.4 thousand jobs; maintaining salaries in the order of nearly US $ 500 million (R $ 2.8 billion); and the injection of 1 billion US dollars (6.2 billion reais) into the Brazilian GDP.

“We thank Ministers Gilson Machado, Tarcísio de Freitas and Paulo Guedes, who, together with their teams, have fought tirelessly for this measure which keeps Brazil aligned in the international market, helping aviation to remain competitive and enabling an environment business favorable to the recovery of the sector. and tourism in 2022 ”, underlined Eduardo Sanovicz, president of the Brazilian Association of Airlines (ABEAR).

As reported by our Brazilian partner Aeroin, airlines currently pay an IRRF of 15% on aircraft rentals. This tax is levied in the event of payment, credit, delivery, use or shipment, by the source located in the country, to a legal person domiciled abroad, in return for the rental of aircraft or of engines intended for the units, concluded by a public company of scheduled air transport, both for passengers and for freight.

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