The measure published in the Official Gazette reduces the fees charged by the IRRF on the rental of aircraft and engines as from this year.
The maximum duration of the reduction allowed by law, i.e., 5 years. The measure directly benefits airlines, indirectly impacting the entire tourism production chain and guaranteeing the permanence of thousands of jobs.
The income tax withholding rate (IRRF) on aircraft leasing will be reduced from 15% to 0 over the next 2 years. Starting in 2024 the rates will have a gradual increase of 1% per year. That is, 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 that have ensured the resumption of tourism activity throughout the country. This was only possible thanks to working in synergy with the Ministries of Infrastructure and Economy and the unquestionable support of President Bolsonaro, who believes in and supports tourism. I could not be more confident this year,” said the Minister of Tourism, Gilson Machado Neto.
The state reduces the operating costs of the air sector, contributing to the maintenance of businesses and jobs in the tourism sector and the resumption of tourism.
For the Brazilian Airline Association (ABEAR), the measure will allow the permanence of 95.4 thousand jobs; the maintenance of salaries in the order of almost US$ 500 million (R$ 2.8 billion); and the injection of US$ 1 billion (R$ 6.2 billion) in 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 that keeps Brazil aligned with the international market, helping aviation to remain competitive allowing a favorable business environment for the resumption of the sector and tourism in 2022,” highlighted Eduardo Sanovicz, president of the Brazilian Airlines Association (ABEAR).
As reported by our Brazilian partner Aeroin, airlines currently pay a 15% IRRF on aircraft leasing. This tax is levied in case of payment, credit, delivery, use or shipment, by the source located in the country, to a legal entity domiciled abroad, as consideration for the leasing of aircraft or engines destined to the units, entered into by a public company of regular air transportation, both for passengers and cargo.
