UATA has established a working group to address issues arising from the classification of aircraft leasing transactions as royalties by the Ukrainian Bureau of Economic Security. This move has led to criminal proceedings against several Ukrainian airlines, including UIA and Windrose, and has raised concerns about the legal and tax framework governing leasing activities.
Industry representatives emphasize that the ambiguity in legislative interpretation has created significant uncertainties, threatening the operations of Ukrainian carriers, which rely heavily on leased aircraft. The Ukrainian Air Transport Association (UATA) is actively working to develop a comprehensive tax consultation to clarify the rules and align them with international treaties and domestic law.
Aiming to avoid further legal complications, the industry-led working group will gather specific examples of problematic tax classifications and submit proposals to the Ministry of Finance by October 14. The goal is to establish an official, unified position on aircraft leasing taxation that prevents authorities from misapplying or misinterpreting applicable laws, thereby supporting the stability of Ukraine’s civil aviation sector.
