MOSCOW, March 17 Russian aviation service companies will receive tax breaks, Russian Prime Minister Mikhail Mishustin said.
“Today we will also consider a bill that will reduce the costs of service companies in the aviation industry, exempt them from paying two taxes. We are talking about the provision of services for the replacement of engines and other components of civil aircraft,” Mishustin said at a government meeting.
He noted that a zero rate for value added tax is now set for such operations. Also, when calculating income tax in income and expenses, the cost of spare parts and components will not be taken into account.
«Sending components for repair and returning them to operation often requires significant financial and time costs. According to tax legislation, such a service is considered as two purchase and sale transactions, since when replacing, the service company provides the air carrier with serviceable spare parts, receiving from it failed ones, which are returned to circulation after repair. Information about such an operation should be included in the tax base, in order to determine it, it is necessary to calculate the cost of the repaired component through an independent examination, «Mishustin added.
He concluded that this would help maintain the airworthiness of the civil aircraft fleet, maintain transport accessibility and connectivity of Russian regions.