New Italian"Luxury Tax"

Donald Walker · Post by **Donald Walker** » Mon Feb 06, 2012 11:06 pm

The headline on the LAA website "New Italian 'Luxury Tax' on aeroplanes hits home based owners and visitors alike" is alarmist and inaccurate.

A visit is unlikely to last more than a month, in which case the tax due would be 1/12 the figures quoted.

(The tax) is payable on application for issuance or renewal of the certificate of airworthiness during the whole period of its validity. In the event that the certificate is valid for less than a year the tax is payable at the rate of 1/12 of the above amounts for each month of validity.

Brian Hope · Post by **Brian Hope** » Tue Feb 07, 2012 8:27 am

Sorry Donald but I do not see how your quote clears the issue. All it says is that the tax is payable when an aircraft gets its annual certification but if for some reason that certification does not run for a full year, the amount payable will be based on a monthly pro-rata amount.
Naturally the Italian GA community is fighting this new tax, but unless or until it becomes clear exactly how much visiting pilots will be charged, I would certainly be very wary of taking an aircraft to Italy. The reason the Italian government is set on including visiting aircraft by the way, is because they do not want Italians registering their aircraft in other states to avoid the tax.
One would hope that if a visitor tax has to be applied, it will be based on a daily pro-rata amount, but even at that rate a fortnight's holiday with a C172 is likely to cost around £150 in tax. There are plenty of alternate places to go where they welcome GA and aren't intent on ripping us off but if you want to help prop up the Italian economy you go for it.
As ever, if I get a definitive statement that outlines what the final arrangements are, I will post and publish it.

Donald Walker · Post by **Donald Walker** » Tue Feb 07, 2012 9:22 am

Brian, the latest official word on this issue is from the tax authorities is dated 3/2/2012 and lays out the method of payment. http://goo.gl/xT1T3

Admittedly, there is still no news on the way visitors are to be charged, but it stands to reason that if Italians pay for the privilege of flying their aircraft in Italy on a monthly pro-rata, visitors will have at least the same "concession".

If my assumption is correct, an aircraft with a MTOW of 700kg will pay EUR 87.50, while a microligh will pay EUR 37.50. When you compare that to the EUR 89 that permit aircraft are charged to visit Belgium, it is not as alarming as the LAA makes it out to be.

BTW, the Belgians also implemented the tax to stop owners registering their aircraft abroad.

Donald Walker · Post by **Donald Walker** » Sat Mar 03, 2012 9:36 pm

This from the law firm Clifford Chance:

How are non-Italian registered aircraft affected by the Tax?
Since non-Italian registered aircraft were added by way of a last minute amendment to a set of rules originally provided solely for Italian registered private aircraft, the new legislation is not properly designed to cover non-Italian registered aircraft. Absent official clarifications, the same rules for Italian registered aircraft should apply. Hence, unless an exemption applies, aircraft stationed in Italy for more than 48 consecutive hours will be subject to the Tax by reference to the period from 6 December 2011 until expiry of the certificate of airworthiness at the rate of one twelfth of the amounts referred to the above table for each month of validity of the certificate.

So if you plan to visit Italy, it pays to do so in the month your CofA expires.

The tax does not apply to local microlights, because they are not on the Italian national register. The law does not mention ULM, which could mean that foreign microlights are also exempt.

AOPA Italy has asked the tax authorities to confirm that the tax does not apply to Permit to Fly aircraft, since the wording only refers to the validity of a CofA. Unfortunately, the authorities have 6 months to response, which could mean waiting until August.

In the meantime, confusion reigns supreme.

Donald Walker · Post by **Donald Walker** » Mon Apr 16, 2012 9:14 pm

There are reports in the Italian press that an amendment to this law approved at parliamentary committee level increases the period after which foreign aircraft become liable to the tax from 48 hours to 45 days.

This now needs to be ratified.

G.Dawes · Post by **G.Dawes** » Tue Apr 17, 2012 9:21 pm

If that is true it stops them shooting their on tourist business down.
Pay Tax, don't go.
Now just persuade the Belgians, not to dissuade visitors.
Graham

Donald Walker · Post by **Donald Walker** » Tue Apr 24, 2012 9:20 pm

Code: Select all

As ever, if I get a definitive statement that outlines what the final arrangements are, I will post and publish it.

OK Brian, here is your definitive statement:

http://www.aeci.it/wp-content/uploads/C ... 6_2012.pdf