Mauritius positions itself as a jurisdiction of choice for aviation finance and leasing structures due to the following factors:
- It is a low tax jurisdiction.
- It enjoys a network of 46 tax treaties and a further 34 Investment Promotion and Protection Agreements.
- The ownership or leasing of an aircraft does not require licensing by the Department of Civil Aviation of Mauritius (“DCA”).
- It has a dynamic financial services industry with qualified professionals in diverse fields such as accounting, law, banking and finance.
- There is no exchange control in Mauritius and free repatriation of funds is assured.
- Mauritius is a popular and sophisticated International Financial Centre especially for Asian and African investments.
The acquisition of an aircraft through a Mauritius vehicle is usually made through a Global Business License (GBL) Company or an Authorised Company.
- The GBL Company is resident in Mauritius and can therefore take advantage of tax treaty benefits which can be useful to optimise returns to investors. Such companies can be set up by foreign individuals or companies who can also be shareholders.
- The Authorised Company on the other hand is a non-resident company in Mauritius for tax purposes and is therefore not liable to tax in Mauritius on its income. It does not benefit from the network of tax treaties that Mauritius has signed.
The ultimate decision on which vehicle to use will depend upon a number of factors, but the choice of the vehicle adds flexibility to the design of the ultimate structure. The acquisition of an aircraft is sometimes effected as an off-balance sheet transaction through a purpose trust holding a GBL Company which in turn owns the aircraft.
AIRCRAFT REGISTRATION IN MAURITIUS
The Department of Civil Aviation of Mauritius (“DCA”) is the regulatory body which is responsible for registration of aircraft in Mauritius. The DCA also conducts other activities such as issuing air operation certificates, issuing certificate of air worthiness, licensing of cabin crew personnel and engineers, licensing of aerodromes and conducting safety and security audits. Aircraft ranging from helicopters and private executive jets to large commercial airliners, less than 25 years old, are eligible for registration. White tailed aircraft, engines, spare parts whether attached or not to an airframe and flight simulators are also eligible for registration.
ADVANTAGES
- Tax efficient structures and regimes for transfer of assets or diversion of income stream
- Flexible but prudent aeronautical regulations ensuring international respect and preserving aircraft resale values and ease of re-export
- Signatory to several Conventions such as the Chicago ICAO Convention, the Geneva Convention on International Recognition of Rights in Aircraft and the New York Convention on the Recognition and Enforcement of Foreign Arbitration
- 100% accelerated depreciation rate in the first year of the aircraft
- Existence of comprehensive and innovative aircraft and corporate management arrangement and other support elements including banks, lawyers and accountants
- Excellent asset security with flexible and innovative financing and leasing structures provided under the proposed Foreign Aviation Equipment (Ownership and Security Interests) Registration legislation.
OUR PROPOSAL
IMML offers to assist interested clients throughout the registration of their aircraft on the Mauritian registry. Amongst the services we shall provide are company incorporation and set up, directorship, company secretarial, accounting, administration services and all ongoing maintenance to meet all the local regulatory and legal obligations in relation to such company.
