Legal Notice 322 of 2018 has accelerated the period over which aircraft can be depreciated for tax purposes.
This period has been reduced to four (4) years. Consequently, the annual rate of capital / wear and tear allowances which can be availed of, has been increased to 25%. The 25% rate can now be applied on the following:
- Aircraft airframe
- Aircraft engines
- Aircraft engine or airframe overhaul
- Aircraft interiors and other parts
The amendment applies for aircraft acquired on or after 1 January 2018.
(With the exception of Aircraft interiors and other parts, previously the Maltese tax law required that such aircraft equipment was to be depreciated over a period of 6 years).
FF International actively provide tax advice to companies seeking to optimise their corporate tax.
For further details on this update, kindly contact:
Franco Falzon CPA LL.M
Peter Borg CPA
T: +356 2010 7771
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