Aircraft leasing firms in Ireland expressed concerns about corporate tax changes and their impact on their competitiveness.
Increasing the tax rate from 12.5pc to 15pc was seen as a potential threat to Ireland’s position as a hub for the aircraft leasing industry.
Research by Price Waterhouse Cooper published last year which showed the industry here was growing and was worth about €900m to the economy. This was an increase of 26pc compared to 2018. The report said the industry employed more than 8,500 people here.
Air Lease Ireland director Liz Bohan says the group continued to engage with the Department of Finance and Revenue about tax policy changes for leasing companies.
Leased aircraft provide international airlines with increased fleet management flexibility.
Ireland’s historically low corporate tax rate was a key factor in attracting aircraft leasing firms.
The new global tax agreement applying a minimum rate of 15pc posed a challenge to Ireland’s leadership in the sector.
Avolon and Macquarie Air Finance, among others, raised concerns with the Finance Minister about the tax changes, emphasizing the importance of stability and certainty in the Irish tax regime for the success of the aviation leasing industry.
Andy Cronin CEO of Avolon wrote to the minister Mattie McGrath: “Based on recent feedback, we have significant concerns regarding the impact that the changes would have on aircraft leasing which, as you know, is one of the most successful industries in Ireland.”
