Italians new tax..... SNAFU

[mattman]

This is only the start, when the rest start to collapse this what you should expect........:yuk:





Italy has introduced a new 'luxury tax' on private aircraft which will have a serious impact on the aviation industry and is likely to cost the country more than it brings in in revenue. The new tax will be levied on a sliding scale from €1.5 per kilogram per year for aircraft under 1,000 kgs to €7.55 per kg for aircraft over 10,000 kg, with helicopters paying double. While the tax will further depress aircraft ownership in Italy, it could affect every pilot in Europe because it applies to any private aircraft, of any nationality, which remains on Italian territory for 48 hours or more. Not only does that make visiting Italy expensive, but even passing through the country becomes risky. A weather delay, a mechanical problem, or industrial action by ATC could land the transiting pilot with a tax bill running into thousands of euros.
Massimo Levy of AOPA Italy says: "It looks like they really want to put an end GA in this country. Can you imagine an English tourist with a private plane being obliged to pay €3,500 'luxury tax' at the end of his long weekend in Italy? Or the American businessman arriving with his Citation remaining for more than two days?
"What will happen now to Italian GA? I have no idea. It looks like we really might have reached the end of the road."
AOPA Italy has spoken with a number of politicians making it clear that while aircraft owners should contribute at what is seen to be a time of national emergency, the levels of tax were so excessive that they would cripple the industry and therefore produce less revenue than they would if they were set at more sensible levels. Political promises of alleviation have come to nothing.
The new taxes, imposed under a decree named 'Save Italy' which also raises the pension age by five years, hit almost everything but are particularly heavy on items such as cars over 250 hp, boats more than 10 metres long, and all aircraft. While boats and cars enjoy a discount on the basis of the age – after 20 years a boat pays only 50% of the tax and a car does not pay at all –*aircraft pay the full amount indefinitely.
Airlines, charter and aerial work operators are exempt from the tax, as are government, police and military aircraft. Others must pay annually:
Up to* 1,000 kg MTOW €1.50 per kg
Up to* 2,000 kg MTOW €2.50 per kg
Up to* 4,000 kg MTOW €4.25 per kg
Up to* 6,000 kg MTOW €5.75 per kg
Up to* 8,000 kg MTOW €6.65 per kg
Up to* 10,000 kg MTOW €7.10 per kg
Over 10,000 kg MTOW €7.55 per kg
Helicopters must conform to this weight scale but pay double the amounts. *Gliders, motorgliders, gyroplanes and balloons will pay a fixed €450 per year.
The application of these tax rates to foreign aircraft will discourage aerial tourism, but Massimo Levy wonders whether anyone will really notice. "Italy already extends poor hospitality to foreign GA airplanes, with all its airspace and airport regulations and charges," he says, "so possibly no-one will notice that the trade has all gone, unless something happens like a foreigner refusing to pay and the authorities impounding an aircraft. Something like this would make a lot of bad publicity to the country.
"Perhaps AOPA members will consider writing to the Italian embassy in their respective countries pointing out that Italy will lose more than it gains by this."

[500 above]

AOPA Italy has spoken with a number of politicians making it clear that while aircraft owners should contribute at what is seen to be a time of national emergency, the levels of tax were so excessive that they would cripple the industry and therefore produce less revenue than they would if they were set at more sensible levels. Political promises of alleviation have come to nothing.

This is the start of the end for Italian g/a. Arrivederci.:ugh: where next? Greece? Spain?

Italian political promises = oxymoron.

[what next]

Hello!

What can I say? As ist is now, the Italian national debts are going to be paid back by northern european taxpayers. Now someone comes up with a smart idea to let wealthy Italians pay their own bills (I do not feel sorry at all for people who own a helicopter or an airplane over 10 tons...).

Guess which option we northern european taxpayers prefer?

Happy landings
Max

NB: I lived in Italy for 20 years and know a few things about local tax paying habits...

[dirk85]

While the tax will further depress aircraft ownership in Italy, it could affect every pilot in Europe because it applies to any private aircraft, of any nationality, which remains on Italian territory for 48 hours or more.

This is bull**it, it was proposed, but never passed.

Please, be sure when you post something.

Bye!

PS: you "north european" taxpayers can happily mind your own business, no need to talk **** about us, and then but spend your holidays down here. :)

[mattman]

Now someone comes up with a smart idea to let wealthy Italians pay their own bills (I do not feel sorry at all for people who own a helicopter or an airplane over 10 tons...).


Fair enough, but what about the guys who come to do Buisness? Do you think they want to be ripped off by the Italians more than twice.

When there is no more foreign revenue then what? Northern Europe will pay any way. Ass about backwards I think....:ugh:

[mattman]

My bad but copied and pasted from IAOPA news mail thingy please post the actual legislation.

[500 above]

Volare, Oh oh
Cantare, oh oh oh oh!

What would Dean Martin think...

What next - this will affect all of us, not just tax evading Mediterranean minorities. I feel for you in that you're homeland (and many others) are bailing these guys out of your taxes. Just imagine for one minute that your boss may consider selling his aircraft due to these increased operating overheads...

It's a disaster!

BTW are you speaking from an airline pilots viewpoint? ;)

[dirk85]

I hope you know italian.

13. (aeromobili) È istituita l’imposta erariale sugli aeromobili privati, di cui all’articolo 744 del codice della navigazione, immatricolati nel registro aeronautico nazionale, nelle seguenti misure annuali:
a) velivoli con peso massimo al decollo: 1) fino a 1.000 kg., euro 1,50 al kg; 2) fino a 2.000 kg., euro 2,45 al kg; 3) fino a 4.000 kg., euro 4,25 al kg; 4) fino a 6.000 kg., euro 5,75 al kg;
5) fino a 8.000 kg., euro 6,65 al kg; 6) fino a 10.000 kg., euro 7,10 al kg; 7) oltre 10.000 kg., euro 7,55 al kg;
b) elicotteri: l’imposta dovuta è pari al doppio di quella stabilita per i velivoli di corrispondente peso;
c) alianti, motoalianti, autogiri e aerostati, euro 450,00.
15. L’imposta è dovuta da chi risulta dai pubblici registri essere proprietario, usufruttuario, acquirente con patto di riservato dominio, ovvero utilizzatore a titolo di locazione finanziaria dell’aeromobile, ed è corrisposta all’atto della richiesta di rilascio o di rinnovo del certificato di revisione della aeronavigabilità in relazione all’intero periodo di validità del certificato stesso. Nel caso in cui il certificato abbia validità inferiore ad un anno l’imposta è dovuta nella misura di un dodicesimo degli importi di cui al comma 13 per ciascun mese di validità.
16. Per gli aeromobili con certificato di revisione della aeronavigabilità in corso di validità alla data di entrata in vigore del presente decreto l’imposta è versata, entro novanta giorni da tale data, in misura pari a un dodicesimo degli importi stabiliti nel comma 13 per ciascun mese da quello in corso alla predetta data sino al mese in cui scade la validità del predetto certificato. Entro lo stesso termine deve essere pagata l’imposta relativa agli aeromobili per i quali il rilascio o il rinnovo del certificato di revisione della aeronavigabilità avviene nel periodo compreso fra la data di entrata in vigore del presente decreto ed il 31 gennaio 2012.
17. Sono esenti dall’imposta di cui al comma 13 gli aeromobili di Stato e quelli ad essi equiparati; gli aeromobili di proprietà o in esercenza dei licenziatari dei servizi di linea e non di linea, nonché del lavoro aereo, di cui al codice della navigazione, parte seconda, libro I, titolo VI, capi I, II e III; gli aeromobili di proprietà o in esercenza delle Organizzazioni Registrate (OR), delle scuole di addestramento FTO (Flight Training Organisation) e dei Centri di Addestramento per le Abilitazioni (TRTO - Type Rating Training Organisation); gli aeromobili di proprietà o in esercenza dell’Aero Club d’Italia, degli Aero Club locali e dell’Associazione nazionale paracadutisti d’Italia; gli aeromobili immatricolati a nome dei costruttori e in attesa di vendita; gli aeromobili esclusivamente destinati all’elisoccorso o all’aviosoccorso.
18. L’imposta di cui al comma 13 è versata secondo modalità stabilite con provvedimento del Direttore dell’Agenzia delle entrate da emanarsi entro sessanta giorni dall’entrata in vigore del presente decreto.

[dirk85]

Wow, such a load of moaning and crap based on wrong information.

Makes you wonder about the intelligence of these "taxpayers". :)

[mattman]

[QUOTE]Wow, such a load of moaning and crap based on wrong information.

Makes you wonder about the intelligence of these "taxpayers".
/[QUOTE]


Ok ok calma, calma, as you probably assumed with your legal post we don't read Italian, the result of my conclusion is what you get from from other sources and this time the inteligance was bad.

So seeing I had to do some google translate, it only applies to Italian registered aircraft?
If you go to private flying the discussion already includes non Italian aircraft.

[500 above]

Dirk, I don't see you having a lot of confidence in your own Government! This is from another of your posts in the flight training forum:


7th Sep 2008, 14:40 * #7 (permalink)
dirk85
*
Join Date: Jul 2007
Location: DIXER 5000 ft or above
Posts: 279
My school gave me a word doc, not a paper version.
I've also tried to ask the italian CAA but I'm quite sure I'll never get a response from them...
*

[flydive1]

What can I say? As ist is now, the Italian national debts are going to be paid back by northern european taxpayers. Now someone comes up with a smart idea to let wealthy Italians pay their own bills (I do not feel sorry at all for people who own a helicopter or an airplane over 10 tons...).

Most if not all jets and aircraft above 10 tons are under an AOC so they are not going to pay anything.
The one who will end up paying are the owners of small prop aircraft.

And from your post, any tax is good, as long as it applies to others, right?

[dirk85]

mattman from the information that is available now it seems it's only applicable to italian registered planes, and only to private owned ones, ie not under AOC.

I have absolutely zero confidence in Italian CAA, and even less in the Government, but that doesn't mean I enjoy people talking sh** about my country, especially if using wrong information.

Cheers!

[500 above]

Most if not all jets and aircraft above 10 tons are under an AOC so they are not going to pay anything.

Not strictly true. There are many privately operated aircraft above 10 tons.

[flydive1]

Not Italian registered;)

[500 above]

Maybe

I'm not convinced, however, that this insane tax is valid only for Italian aircraft though. If so, it would be only too easy to change to another register such as Malta or the IOM for private aircraft. (Not as if any wealthy Italians would want to evade tax though:ok:)

Let's hope it just doesn't happen... Some on other forums saying its for all aircraft registers, not just Italian. Well soon see!

From the IAOPA article:

it could affect every pilot in Europe because it applies to any private aircraft, of any nationality, which remains on Italian territory for 48 hours or more. Not only does that make visiting Italy expensive, but even passing through the country becomes risky

[flydive1]

I'm not convinced, however, that this insane tax is valid only for Italian aircraft though. If so, it would be only too easy to change to another register such as Malta or the IOM for private aircraft. (Not as if any wealthy Italians would want to evade tax thoughhttp://images.ibsrv.net/ibsrv/res/src:www.pprune.org/get/images/smilies/thumbs.gif)

That's the reason that comma14bis was introduced, to avoid Italians registering their aircraft outside Italy.
But as I said most if not all Jets, turboprops and helicopters are under AOC, so they will not be touched by this tax.

Regarding foreign aircraft, there seems to be a bit of confusion, as Dirk85 said, comma14bis(relating to foreign aircraft in Italy for 48h) was briefly introduced but quickly removed from the final legislation.
I'm anyway following the issue and waiting for the final drafting.

[500 above]

I'm anyway following the issue and waiting for the final drafting.

I'm sure we'd all be interested on an update as soon as you have it flydive1.

[His dudeness]

I do operate a pvt airplane above 10 tons and we sometimes have to operate to Italy.

flydive, as you seem to be the only sane Italian on this thread: will we have to pay after 48hrs or not? (D-reg)



I have absolutely zero confidence in Italian CAA, and even less in the Government, but that doesn't mean I enjoy people talking sh** about my country
You "north european" taxpayers can happily mind your own business, no need to talk **** about us, and then but spend your holidays down here.


We happily mind our own business as soon as you retract you hands out of our pockets. As long as Italy wants to suck off the EU tit it has to accept that the paying country has a right to mind the business of Italy. Show us that we are wrong in 'talking **** about you' then we won´t do it.
There is no fire without smoke....

[dirk85]

Talking about taxpayers and titsuckers, a fine example of how our arian friends are pretty good at not practising what they preach comes form today news:

I tedeschi che non pagano le tasse, in Italia: il caso Bosch | Blitz quotidiano (http://www.blitzquotidiano.it/cronaca-italia/bosch-tasse-fisco-agenzia-entrate-1067882/)

In two words Bosch didn't pay 1300 MILLIONS of taxes in Italy, and agreed to settle for 300 millions...

[cldrvr]

Nah you got that backwards, the Germans were too clever for you lot and as your taxsystem is in such shambles you were darn lucky you got away with collecting even that much.

Just have a look at what you guys pay in the markets, 7%, and then see what the markets think of the German debt.

Enough said.

Back to subject, the Italians sure are desperate if they go through with this silly tax proposal. But heh if you are that broke, you will try anything.

[flydive1]

Not Italian, but close to it and operate occasionally into Italy.
Well, I did a bit of search.

According to this link, that looks like a direct extract from the official pubblication "Gazzetta Ufficiale" as published on Dec 22nd, the Comma 14bis seems to have been introduced and approved. This seems to be the final text.

http://www.piscino.it/file/leggi/finan/manovradicembre-30.pdf

This is the way I understand at the moment, foreign registered aircraft will have to pay.

As I said there have been quite a bit of confusion around it, I'm in contact with a lawyer who is also interested in finding out correctly.
Will talk to him next week.

For the time being all I can say is be careful, check with your handler and, at least for now, try not to stay longer than 47 hours

[I-NNAV]

Nigel Farage: 'A German dominated Europe' [16-Nov-11] - YouTube (http://youtu.be/OSDzmNmNmkM)

[His dudeness]

@Gabriele, sorry for putting you in the wrong country, what I meant is Italian speaker....

Arian friends

Yes I´m 2,20 mtrs tall, have the bluest eyes in the world and I´m blonde and I could kill you just by looking at you. The force is with me and we Germans are better than anyone.

Yawn....


In two words Bosch didn't pay 1300 MILLIONS of taxes in Italy, and agreed to settle for 300 millions...

So, Bosch did not pay taxes they owed and your rotten Country let them go thru with it and now you want to blame whom for that? Me? Is a polite 'f... you' good enough for an answer?

Allright then, although I live in Baden-Wuerttemberg - where Bosch resides - I´m not connected in any way, shape or form to Bosch. Sorry, me is a bad liar, I do have a Bosch Dishwasher...I´m sorry for this and will throw it away asap.

[His dudeness]

Nigel Farage: 'A German dominated Europe' [16-Nov-11] - YouTube

What can I say... he is right. We removed Mr.Berlusconi or should I say the honorable Mr.Berlusconi whos only interest was Italy - or was it BungaBunga and evading courts? And was reelected by the Italian people time and again..

We made the Greece economy fail by prohibiting every single Greek to pay his taxes due.

We made the celtic tiger struggle and we invaded Portugal to make them poor. Whilst doing that we did not forget Spain, we made them fail too.

A, forgot Iceland, we broke em too just in case they would join EU.

And all of that effort was taken so that we can pay more.

Now that is what I call a cunning plan!!! Even Baldrick couldn´t make that one up...

[what next]

1. What next - this will affect all of us, not just tax evading Mediterranean minorities. I feel for you in that you're homeland (and many others) are bailing these guys out of your taxes. Just imagine for one minute that your boss may consider selling his aircraft due to these increased operating overheads...

2. It's a disaster!

3. BTW are you speaking from an airline pilots viewpoint?

1.: My boss operates his aircraft under an AOC (not because he wants to evade taxes but becuause he really only uses it very little himself and therefore needs some way to make the thing pay for itself) so I will not be affected. Nor will be my students ( as well as most self-flying tourists) who tour Italy in flying club aircraft in order to bulid hours, because training aircraft are excemt from these taxes. According to the quoted italian legal text above of which I would like to see the first half!

2. As I said I lived in Italy for twenty years. Luxury tax is nothing new and has worked very well in the past (until Berlusconi abolished it to do himself and his friends a favor). The "redditometro" as it uses to be called never killed private aviation on the contrary, it explains the well-being of the Italian microlight industry.

3. No

Happy landings
Max

[His dudeness]

Max, with all due respect, do you fly commercially to Elba? I don´t think so or have they made the runway longer?

And if they decide to have a tax on ITALIAN Aircraft, okay...but why should anybody else pay that? In my case (13744kg, pvt ops) that would be like 104000€. We do fly to Italy probably 4 times a year and usually stay 1 night.
So if something is broken, we do pay a 104000€ penalty for, say, a broken generator? On top of fuel MOT, handling/landing/ATC and what not? A company that has created jobs in Italy?

If they get through with that, others will follow and in the end anyone operating a private airplane will consider the operation as incalculable, something my peers would not accept. This is a real threat. And we could not get on an AOC as our homebase would not permit comm ops.

Does anyone know how private is defined? Is a coorperate airplane no AOC private to the Italian customs?

I just wonder what would happen if this would apply to private cars!!!

And why are commercial aircraft exempt? Whats the reasoning behind that?

[flydive1]

I just wonder what would happen if this would apply to private cars!!!It does, cars will annually pay 20 Euro per KW above 185 KW(at least this one does not apply to foreigners) This on top of the normal tax.
Boats are affected too.

[His dudeness]

To private cars owned and registered NOT in Italy? Sorry only just saw: ->(at least this one does not apply to foreigners)

But thats what I meant, why airplanes and not cars? Private foreign boats?

[flydive1]

Please read carefully what I wrote.

[Marcus550]

Forgive me for intruding, but the MTOW of our G550 is (I think) 41,300 kg. Thus, at 7.55 euros per kg it would cost me 311,815 Euros should I have the misfortune to spend more than 48 hours in Italy? Much as I love the country, I can absolutely guarantee you that we are NOT going there for vacation until this tax goes away. Sheesh.

[dirk85]

It's more likely you are going to pay that much if you stay for 365 days, and "just" X/365 where X is the number of days you stay there.
But we will know abou how this law will be implemented in the close future i guess.

[what next]

Hello!

I found the time to look up and read all the relevant bits of the original law (called "decreto salva Italia" which means decree to save Italy). Absolutely no mention anywhere regarding foreign registered aircraft (or cars and boats). All we will see are the usual smart five percent of the population who own ninetyfive percent of everything, flagging out their toys and avoiding taxes as always.

[AfricanEagle]

Best we all relax and wait and see how the law will be implemented.

The article regarding aircraft not registered on the Italian Register was a last moment add on to the basic law. Thought and written by a differently intelligent person.

Collecting the tax will be an extremely expensive burocratic nightmare for the Italian goverment and will probably be ruled as illegal by international law the way it is currently written.

I bet that if implemented it will be killed by June ;)

[flydive1]

I found the time to look up and read all the relevant bits of the original law (called "decreto salva Italia" which means decree to save Italy). Absolutely no mention anywhere regarding foreign registered aircraft (or cars and boats). All we will see are the usual smart five percent of the population who own ninetyfive percent of everything, flagging out their toys and avoiding taxes as always.

Check out these links

http://www.piscino.it/file/leggi/finan/manovradicembre-30.pdf

Gazzetta n. 300 del 27 dicembre 2011 - (http://gazzettaufficiale.biz/atti/2011/20110300/011G0256.htm)

Look for articolo 16 comma 14bis

As AfricanEagle says it will probably be deleted sometimes in the near future, but at the moment this is were we stand.

[His dudeness]

@flydive: WHEN exactly will the legislation come into force? 01.01.2012?

Got to fly to Italy on 2/3.feb.2012...

[Shorrick Mk2]

Interestingly enough the tax is quoted as an "annual rate". Before anyone gets up in arms about it, it'd be probably interesting to find out then if the actual amount to be paid is the annual rate prorated down to the actual number of days spent. Otherwise I wouldn't see the point of having an "annual rate".

[what next]

Check out these links

http://www.piscino.it/file/leggi/fin...icembre-30.pdf (http://www.piscino.it/file/leggi/finan/manovradicembre-30.pdf)

Gazzetta n. 300 del 27 dicembre 2011 - (http://gazzettaufficiale.biz/atti/2011/20110300/011G0256.htm)

Look for articolo 16 comma 14bis

Thanks for the links. It really looks as if the generator of Mr Dudeness will have to fail right after takeoff on the way home.
But the last word has not been spoken yet, as this law is constantly amended. For boats, the law becomes effective after May 1st, for aircraft no specific date is mentioned. (BTW: Boats are taxed on a daily basis, even for "fractions of days"!)

There is now also an "articolo 15 comma 15-ter" with a discount scheme for older aircraft: After 5, 10 and 15 years of age, the tax is reduced to 60, 30 and 15 percent of the nominal value. And aircraft older than 20 years are completely excempt. Good news of lots of private owners of piston singles and twins.

[AfricanEagle]

There is now also an "articolo 15 comma 15-ter" with a discount scheme for older aircraft: After 5, 10 and 15 years of age, the tax is reduced to 60, 30 and 15 percent of the nominal value. And aircraft older than 20 years are completely excempt. Good news of lots of private owners of piston singles and twins.

The above 15 ter applies only to cars and boats :ugh:

[Dg800]

The above 15 ter applies only to cars and boats :ugh:

Exactly! A proposal to apply the same or a similar reduction scheme based on aircraft age was put forth but immediately dismissed by parliament!

Dg800

[Dg800]

And why are commercial aircraft exempt? Whats the reasoning behind that?That any commercial operator would just immediately fold up if forced to pay such insane amounts of money? And thus stop paying any tax at all, not to mention the loss of jobs and all that?

Our politicians may be stupid, but one thing they most definitely aren't is suicidal.

Ciao,

Dg800

[flydive1]

Out politicians may be stupid, but one thing they most definitely aren't is suicidal.

Not so sure about that, how many foreign registered business jets will now avoid Italy with a big loss of revenue(landing fees, handling, fuel, etc)?

[Dg800]

Not so sure about that, how many foreign registered business jets will now avoid Italy with a big loss of revenue(landing fees, handling, fuel, etc)?Only the ones that aren't on an AOC.

Ciao,

Dg800

[what next]

...how many foreign registered business jets will now avoid Italy...

They will avoid overnight parking. But then, when were we last granted overnight parking permission on the most popular Italian destinations (Venice, Florence,...)? Even on my last visit to not-so-popular Verona (not long ago), we were only allowed 45 minutes on the ground! So not much is going to change.

[flydive1]

Only the ones that aren't on an AOC.

So, all the M registered(300+), probably most of the N, VP, etc.

What next,
yes, sometimes hard to get long time parking in Italy, but airport like LIML, LIRA and such will be hit.
I'm sure our aircraft will steer clear of Italy, unless really necessary(there are alternatives;)) and I know of at least 2 others that will do the same(one of them staying in Italy quite often)

[what next]

.. but airport like LIML, LIRA and such will be hit.

I don't worry too much about those because they are very clever when it comes to inventing their own fees and taxes. What about mandatory pushback in LIML even when parked in the first row...

I'm sure our aircraft will steer clear of Italy, unless really necessary(there are alternativeshttp://images.ibsrv.net/ibsrv/res/src:www.pprune.org/get/images/smilies/wink2.gif) and I know of at least 2 others that will do the same(one of them staying in Italy quite often)

We heard the same when Sardinia introduced their luxury tax a few years ago independently from the rest of the country and we heard the same when Samedan triplicated their landing and parking fees. And yet, try to find a parking spot at Olbia in summer or Samedan in the skiing season! It seems to make those places even more exclusive and attractive...

[His dudeness]

So you think the ldg fees at LSZS are comparable to the 7,55 per KG ?

As I said before we land in Italy maybe 4, maybe 6 times a year. So 104.000€/4 = 26000€...I guess I could land like 25-26 times in LSZS for that amount.

As for the Generator...since Clyde Cessna elected to save on bleed air starters I - unfortunately - need them both to start the bloody thing. Could use the APU Gen to get back home but even me is not stupid enough to take off SE.

I´m sure they would generate more and way easier if they just would put a levy on movements, like 10€ per movement (on top of the landing fee)

I´m interested in how they will check all these things and keep track of it, they could look at Austria on how to make it as complicated as possible (with that bloody passenger tax)

I just wonder who declared war on pvt aviation and why.

[The burgermeister]

Where should transit pilots fly to,whilst SE bound from Uk? Avoid all EC countries as aviation fuel tax effectively doubles your fuel costs. Closely followed by Croatia, cashing in on its peripheral EU positioning. Utilise Serbia,Romania and Turkey wherever possible. More friendly and actually wanting your business.

[Shorrick Mk2]

So 104.000€/4 = 26000€


Actually in most likelihood 104.000 EUR / 365 * (parking days), if (parking days) > 2.

[what next]

I just wonder who declared war on pvt aviation and why.

This is not war against private aviation, but a desperate move to get wealthy people to pay their taxes.

In Italy, the national sport (even more than soccer!) is "cheating the tax office". People who pay their taxes are considered to be plain stupid. Taxation on the income of entrepreneurs, lawyers, doctors and suchlikes is almost impossible, because officially they have close no income. Therefore the only other option is to put taxes on the "outcome", like big houses, big cars, boats and the above mentioned airplanes. The reasoning is, that a dentist who declares an income of 15000 Euros per year (if he is stupid enough to declare that much!) can hardly afford a private touring aeroplane...

As I mentioned above, I had the luck to live in that beautiful country for twenty years. But because of that, I can't really think of any other way to make them pay.

[flydive1]

Yes, but this law will do nothing to accomplish that, at least regarding the aircraft.

As I said above, aircraft under AOC are exempt, and most or all the jets etc registered in Italy are under AOC, the one that are not, will be soon.

[what next]

A lesson for every country, really. If taxes get too high, people don't pay.

Maybe. But there are other examples like Scandinavia, where taxes are _really_ high (compared to Italy, Germany or the United States), yet people pay them without complaining or cheating. Because they feel that they get something in return.

Never underestimate the intelligence of the people paying your salary,

But part of that intelligence is to realise, that a stable and thriving business needs as stable and thriving environment to grow in. And in order to create that, the state needs money. Taxes. There are enough good employers who understand that, pay their taxes, keep their aircraft on the national register. A few more of those and "luxury tax on aircraft" will not be required.

[AfricanEagle]

Typical Italian mess as usual.

Tax has been levied on boats, fast cars and aeroplanes because considered "rich" people's toys to keep left wing politicians happy since the goverment has taxed pensions and increased taxes on workers.

To the best of my knowledge in Italy there are roughly 1200 "private" aircraft. 500-600 are 20+ year old Cessna/Pipers worth 30-40000 euro will that end up paying average 3000 euro per annum tax. The remaining jets and helicopters will all be put on AOC.

So most of the "rich" Italian owners who end up paying are average workers already taxed on their fixed salary that will just have to fly less to keep within budget. (:{ ) or quit all together.

The differently intelligent politician that added the amendment for non registered aircraft in Italy has just killed aviation tourism in Italy and probably created 8-10000 unemployed people.

[what next]

...has just killed aviation tourism in Italy and probably created 8-10000 unemployed people.

Please explain where that figure comes from! As far as I know, aviation tourism is mostly done in chartered flying club or flying school aeroplanes. Those are all excempt from the new tax.
And a 450 kg microlight or LSA pays 600 Euros in taxes. So what? These things cost in excess of 100.000 Euros now and people who can afford such figures can afford another 600 Euros.

[what next]

Anybody know if the tax will apply to microlight aircraft with ACI (Aero Club Italia) registration instead of an I-Number?

Article 14 of the mentioned law says that _all_ ACI aircraft are excempt from the tax!

[AfricanEagle]

Nobody yet knows if microlights are exempt :ugh:

They should be. If they have to pay it will be 450 euros.

Not much for the owner of a top of the range aircraft, but can be expensive for many who fly on a budget with a 5000 euro ragwing micro.

what next, figures are my assumption based on foreign aircraft not flying to Italy because of the new tax. Handling companies not having jet traffic, refuellers, catering, and further down the ladder taxis, car rentals, hotels, restaurant.

The same for some agriturismi for private cessna/piper pilots on vacation, the drop in numbers can make a difference in breakeven.

Regarding Italians, some will reduce/quit flying (especially microlights, activity has already reduced in the past two years due to higher costs and general economic climate) meaning that little maintenance operators will disappear.

I just hope my figures are wrong.

[what next]

I just hope my figures are wrong.

Me too, of course. I remember last time such a tax was introduced (sometime in the nineties) one guy publicly set fire to his own aeroplane to protest against the regulation. All the other aircraft owners somehow continued flying as before...

[AfricanEagle]

what next, you live and fly in Germany. I've flown across and landed in Germany. Easy, simple, straight forward, no complications.

In Italy everything is ten times more difficult and complicated. We are use to it. We have devoloped a thick skin. And we have learnt how to survive and carry on flying. Any other pilot in the world coming to live in Italy would not last 3 months ;)

[Dg800]

Actually in most likelihood 104.000 EUR / 365 * (parking days), if (parking days) > 2.No way, the way the law is written now if you stay longer than 48h you pay for the whole year. There is currently no provision in the law for a prorated payment for aircraft as is instead the case for boats, that do get to pay a daily "docking fee" instead of an annual tax.
Article 14-bis was added at the last minute as someone became aware of the fact that most privately owned aircraft in Italy are not on the Italian registry. Its wider reaching consequences were obviously not taken into consideration, which is typical.

Ciao,

Dg800

[Dg800]

Article 14 of the mentioned law says that _all_ ACI aircraft are excempt from the tax!

All aircraft owned or leased by the AeCI or its local chapters are exempt! There is no exemption whatsoever for privately owned aircraft. :=

[Shorrick Mk2]

No way, the way the law is written now if you stay longer than 48h you pay for the whole year. There is currently no provision in the law for a prorated payment for aircraft as is instead the case for boats, that do get to pay a daily "docking fee" instead of an annual tax.


True - but the law does mention an "annual" tax, and the actual implementation has to be defined by the "Dirrettore dell'Agenzia delle entrate" so it is quite possible there will be a provision for partial payments such as there is for boats. I mean what if you buy your (Italian-based) airplane in December, you're certainly not going to pay for the whole year?

[His dudeness]

In Italy everything is ten times more difficult and complicated. We are use to it. We have devoloped a thick skin. And we have learnt how to survive and carry on flying. Any other pilot in the world coming to live in Italy would not last 3 months

Which makes me wonder a lot....apparently the same sport has been invented in Greece as well....why do some countries get their act together and others don´t? Not that everything is nice and shiny here, but taxing usually works even if wealthy people also can evade their tax easier than regular employed ones (wich can´t avoid their income tax at all)

And then, using the hot needle they wanna tax what is not theirs to tax (foreign airplane)


In Italy everything is ten times more difficult and complicated. We are use to it. We have devoloped a thick skin. And we have learnt how to survive and carry on flying.

Well, the most use phrase at my last air taxi place was: what have I done, what sins did I commit that I get the trip to Italy?

Actually it really could be worse. Not a lot though.

Question: I have asked it before: is the law already past all hurdles and in place or not? If not, is it written to be effective 'backwards' towards the 1st of January?

[Dg800]

True - but the law does mention an "annual" tax, and the actual implementation has to be defined by the "Dirrettore dell'Agenzia delle entrate" so it is quite possible there will be a provision for partial payments such as there is for boats. I mean what if you buy your (Italian-based) airplane in December, you're certainly not going to pay for the whole year? That would require too much of a reasonable attitude, IMHO. Wrong country for that. :yuk:

If you buy a plane and register it in Italy, then there is a provision in the law for a prorated payment for the first year of ownership. As I said previously, the whole "this applies to foreign registered planes" thing was added on rather hastily and definitely not well thought out. My personal opinion of what will happen is: absolutely nothing. As nobody is currently tasked with actually levying the tax for foreign registered planes, nobody will and that'll be that.

So, in the end not a cent will likely be paid but some people will be scared off (possibly permanently) from flying to Italy on holiday and this will certainly benefit neither the local nor the national economy. :ouch:

Ciao,

Dg800

[Dg800]

Question: I have asked it before: is the law already past all hurdles and in place or not?Yep. Published and effective as of 27 December 2011. :}
Ciao,

Dg800

[His dudeness]

Dg800: mille Grazie!

[172driver]

dirk85, looks like you - deliberately? - left an important para out of your post:

14-bis. L’imposta di cui al comma 11 è applicata anche agli aeromobili non immatricolati nel registro aeronautico nazionale la cui sosta nel territorio italiano si protrae oltre quarantotto ore.

So, after 48 hours this madness affects EVERY a/c. :ugh:

PS: ref page 40 of the original text

[dirk85]

The whole article 14, including 14-bis was initially removed by the legislator, and added again at a second stage.

Bye!

[AfricanEagle]

Who, what and how what will have to be paid has to be officially published by February 4th.

[AdamFrisch]

How do you enforce it? Clamp the front wheel?

If I get a bill in the mail from a foreign entity, it's virtually impossible to get payment for it in another country unless they pay willingly.

[AN2 Driver]

Adam,

How do you enforce it? Clamp the front wheel?

Exactly that. Pay or the aircraft is impounded until you pay. How else? Easiest system in the world. Worked for Dick Turpin, so why not for the Italians?

Guys this is very significant.

Regarding how many European states are cash starved and anti GA, we need to fight this with a very concentrated and effective effort. This is no time for "us" and "them" such as AOC against private aviation e.t.c. If GA does not join forces in this thing, it is a question of time until other cash starved countries will go the same evil ways and exthort money from each of us.

The whole thing is completely unacceptable in this day and age, highway robbers have had their days and most of them were brought to justice too.

[mutt]

Ouch.... we would get charged between 33000 and 3 MILLION Euro.... guess I wont be getting any long layovers in Italy!

Mutt

[dondino]

well...this regulation has been made for italian owners...that use their aircraft privately......this is the matter of fact:
private owner of airplane bigger than 5 tons are moving their machines in companies with aoc.....and who is going to pay are only small piston owners....(but many of those are selling or moving their aircrafts in rent-a plane companies)
for aircraft registered in foreign states but owned by italians is 99% sure that tax office will do a x-check and so those will be pay for their arcrafts.....
second: as you can read.....is a tax made for aircraft owners...(italian) if you r not..they will not make you a tax for a possession...(cause you are not italian citizen) you allready pay a tax called landing fees where part of the money are due to governement taxes.


then....is sooo funny that when we talk about money we are the fatty piggy italians titsuckers...
but it seems that the alldays cappucino's drinker loves the weather of our country.....
and second if my long memory dont fail with greece downturn..italy gaves enough money to save it (not so less than germany).....so dont spit on that...even because for germans italy is one of the most important markets..(see only how many german cars are here...)those problems can happens to everyone...dont be silly saying that if tomorrow can happens to you....you may be in the needs of the piggys southern european....:ok:

[Dg800]

second: as you can read.....is a tax made for aircraft owners...(italian) if you r not..they will not make you a tax for a possession...(cause you are not italian citizen) you allready pay a tax called landing fees where part of the money are due to governement taxes.

Please do not make things up that are not there. There is currently no provision in the law exempting aircraft registered to people not resident in Italy from this tax. There is however most definitely a provision for making foreign registered aircraft tax liable as soon as they stay longer than 48h on Italian territory.

Unless the law is amended soon this will make all aircraft that meet this simple criteria liable, no matter how many people assume differently. How they'll get owners to pay up is another matter entirely.

Cheers,

Dg800

[mutt]

Dondino, would you be so kind as to translate the following:

14-bis. L'imposta di cui al comma 11 e' applicata agli aeromobili non immatricolati nel registro aeronautico nazionale la cui sosta nel territorio italiano si protrae oltre quarantotto ore

Google Translate gives it as follows:

14-bis. The tax referred to in paragraph 11 and 'applied to aircraft not registered in the national aircraft register which stop in the Italian territory extends beyond forty-eight hours

Mutt

[172driver]

Mutt, the Google translation is correct.

[SpringHeeledJack]

It looks like the authorities are starting to crack down on anything luxurious if the 30th of December action is anything to go by :*

Italian ski resort lays bare tax evasion - Telegraph (http://www.telegraph.co.uk/finance/financialcrisis/8995142/Italian-ski-resort-lays-bare-tax-evasion.html)

[peterh337]

aviation tourism is mostly done in chartered flying club or flying school aeroplanes.

Very little international flight is done in flying school planes - due to minimum billing structures making long trips uneconomical.

Italy is already the most unfriendly (in general) to GA visitors in Europe. I've been there a number of times and in most cases it was a big hassle. Avgas availability in particular is difficult to establish reliably, and they will deny a landing clearance if they decide they didn't get your faxes for PNR Customs.

I wonder what will happen if you go AOG and have to sit there for weeks.

[mad_jock]

is there anything about if you go tech?

Its a danger to air safety if folk are flying tech aircraft just so they don't have to pay the tax.

[mattman]

What I don't get, is if you have paid EU VAT on your aircraft how they can go an add a extra tax.

The Italians are shooting themselves in the foot. What if the owner of a ship company wants to build a vessel there but you penalize him for this when he comes to sign the papers in his private aircraft.

Stupido!!!!!!!!!!

Rome was not built in a day, but your showing how to destoy it in a year.......

[His dudeness]

There are annual taxes on a quite a few things, just think cars. But no European State would tax another countries citizens car, if its used in line with law. (for a visit and not prolonged stay etc)

@springhealedjack: thanks for the article. Quite as I expected it to be...

[AN2 Driver]

Peter,

Very little international flight is done in flying school planes - due to minimum billing structures making long trips uneconomical.

If you remember the structures in the old Soviet Block, the only "General Aviation" they had were the aeroclubs. Of course, you were never allowed to fly internationally nor too far away from your home strip. There were NO private planes then.

It looks as if Italy is heading in this direction. Whether it is intentional (or they simply screwed up in an unsavory money-rising effort) or not is not the point, but if they willingly reduce GA to aeroclubs and AOC holders, they do de facto declare people who are obscenely rich enough to own a PA28 an enemy of the state. Also a term not unknown.

Italy is already the most unfriendly (in general) to GA visitors in Europe. I've been there a number of times and in most cases it was a big hassle. Avgas availability in particular is difficult to establish reliably, and they will deny a landing clearance if they decide they didn't get your faxes for PNR Customs.


Frankly, if one can do otherwise, countries like that are best avoided. But not only for GA, for all business. It will their only way to realize that if they keep everyone out and tax whoever is in to bancruptcy, they will be financially much worse off than they are now.

I wonder what will happen if you go AOG and have to sit there for weeks.

I don't. It's perfectly clear. Before you depart, you'll have to pay the taxes. That is why I have decided to ban overflight and landing in Italy with immediate effect and until further notice for my aircraft.

What I'd like to know is if they are also considering to do the same for other means of travel, such as cars. Somehow, I hope so, because if so, the outcry will be a lot larger if thousands of holiday makers get taken refugee at the border points when they try to leave the country.

[AN2 Driver]

just read through the article provided by SpringHeeledJack.

This does indeed explain a lot. Not that it is surprising, mind.

So practically, what the Italian government does now is to place every living being on this planet, Italian or not, under the general suspicion of being a tax evader and therefore implements measures to deal with that.

Within Italy, as the article shows, this may have merit.

However to take foreign aircraft (or car or yacht or whatever) owners de facto hostages is something that does not go at all.

So what needs to be made clear to the Italian government by the EU as well as the international organisations is that while they may investigate their own citizens and residents within their jurisdiction as they deem fit, but albeit within reckognized judical practice (innocent until proven guilty), they have no place altogether to impose these rules on aircraft on normal ICAO international flights, even if they do have a prolonged stay on Italian soil.

The question of whom to tax and whom not will revolve rather about the ownership of the said item and the residence of the owner. As I understand it, a residence permit is required in EU practice if anyone stays in a country other than his own for more than 3 months? So if they went that way, 3 months, plus exemptions for tech cases e.t.c, they'd have a case of sorts.

48 hours however is totally ridiculous and arbitrary. Plus, I do wonder what will actually happen once the first biz jet with VIP's on board gets actively blocked from departure unless a randsom of several hunderd thousand are paid? latest then, I reckon that some powers that are will wake up and take action, such as blocking Italian assets until their citizens with their property are freed without pre-condition.

Best regards
AN2 Driver

[SpringHeeledJack]

Another chapter.....

Italian tax authorities to raid summer resorts in crackdown - Telegraph (http://www.telegraph.co.uk/finance/financialcrisis/8998470/Italian-tax-authorities-to-raid-summer-resorts-in-crackdown.html)

[AN2 Driver]

That is all very well and understandable, but the way General Aviation, in particular drive by randsom for foreign planes who actually wish to spend some money in this country, are targeted here is simply unacceptable.

I reckon that we'll simply need to sit it out until the tax police have had their go and then see what's left there. Frankly, the crackdowns, while expected and also understandable, will in all likelyhood end up in a flood of bancruptcies once all the due taxes are demanded to be paid at once. By the looks of these articles here, one might wonder if there will be any operating hotels or other tourism infrastructure once they are finished.

Make no mistake, those who avoid taxes in such a balant manner (such as giving their income below the poverty line but are millionaires) do deserve no better, yet Italy has little to gain if they simply close down all the infrastructure owned by these people. And they have a lot to loose by hacking off those who have financed their tourism for years.

Best regards
AN2 Driver

[His dudeness]

Just was called by the Italian Embassy in Germany which I wrote an email to regarding the Tax and that is unfair and contra productive for Italy and Italys revenue since people will stay away and explained the possibilities one could encounter to delay flight and thus become liable to the tax.

The Gentleman was very understanding and assured me that the Ambassador will write a letter to the appropriate Ministry in Roma asking to think the thing over, adding the possibility of a sudden strike to the possible reasons of a delay.....

I have no idea if anything will happen, but I can only encourage all concerned to do the same. Doesn´t take much time and is more or less for free...

[boogie-nicey]

Yet another example of that filthy EU imposed regime on the poor Italians. I realise that things need to be turned around but this unimaginative and lazy option to simply tax the rich is going to come around and bite them.

How about addressing Labour laws and imposition of more efficient public spending, oh wait I got it..... get out of the EU, reimpose the Lira, then devalue (yes I know pain but it has to happen at somepoint) and then with lesson learnt begin growth and future prosperity.

Once you remove the EU it's not very hard.

[His dudeness]

Not really an EU fanboy but...

et another example of that filthy EU imposed regime on the poor Italians.

So the EU has taught the poor Italians - or rather the rich ones - how to evade tax, whilst naturally wanting to live in an environment that is first and not third world?

Me don´t think so.

This mess (and look at the UK, Germany , France - we are not far from Italians state) has not a single reason, yet the most contributing factor IMHO is the fact that big coorperations have far too much of influence and power. No big company pays really their share in taxes in whatever country.
the same is true for rich persons.

Whilst most northern countries have at least the ordinary man in an position where he cant evade taxes, that seems to be different in some southern countries as well. If you add all of that together, then the s.h.i.t.e hits the fan big time.

The EU is inherently wrong as long as we don't unite at least labor, financial and social laws.
And its in its current form to big to work, too many too different countries can´t really work together...

[M-ONGO]

Copied from a similar thread on the private flying forum.

peterh337
*
Join Date: Dec 2011
Location: Brighton (pronounced without the "t")
Posts: 263
Wheel clamping?
I understand from a German pilot friend that the German magazine "pilot und flugzeug" has published an article saying the Italians will be "clamping" aircraft after the 48hr point, to prevent them flying away.


They could try...

[badwx]

Hi guys,
I was reading with interest all your posts about this new luxury tax applied (or to be applied) by the italian government to all the GA aircrafts without an AOC.
This tax apparently is still "flying" in a foggy environment. The details are not really clear and for sure we all look to the final decision.
Somebody knows if it is confirmed the date of February 4th for a final and clear solution of this enigma?
If this tax will be confirmed, I think that airports like LIML will be heavily affected...
A good solution? Fly to Lugano (Switzerland). Only 45 minutes away by car from Milan with a perfect Handling Service and very quick customs operations. :)

Cheers

[HEMS driver]

That is a good suggestion. It is too bad that there is not more parking space. The grass won't work for most aircraft except for light singles/twins.

Beautiful city and area.

[Pace]

The owner of the Citation I fly wants to go to Sicily for a week early April.
What will he have to pay if this Tax goes forward? He is there for a week.
May have to suggest Corsica or Malta as I cannot see him stomaching any large costs partially on principal.

Pace

[AN2 Driver]

well, tell him what's up Pace and let him decide if he wants to go the Sicily or spend his hard earned cash elsewhere. Korsika or Malta for instance.

The Italians will only get the message if those who do not have to live there won't go. Stay away. Once half their upper class tourism industry is bancrupt and import/export deals won't work because the foreign clients will not set a foot into italy, that will theach their next government how to behave.

Roadside robberies are a thing of the past, that needs to be clearly communicated in words and action.

[badwx]

That is a good suggestion. It is too bad that there is not more parking space. The grass won't work for most aircraft except for light singles/twins.

Beautiful city and area.


Hi Hems driver,
Lugano is not too small and Gulfstream's and Global Express can be handled without problems. Business jets activity is growing fast in LSZA with all related services.
It is really a nice location and is for sure an attractive alternative to the airports of the region of Milan (LIN, MXP), especially now with the luxury tax!:ok:

Greetings

[G-SPOTs Lost]

Lugano is indeed lovely but the heavy iron that does go in there won't be going very far on 1300 metres with the required gradients to get out.

That's assuming they can get in and stopped on a 1300m strip following a steep approach and it's fairly steep when circling

[dirk85]

No news yet on how this law will be implemented. A couple of weeks and we will all know. No need to panic until that moment, as it cannot be enforced before every detail is published...

[Cecco]

Italy Private Aircraft Tax - update

Jan 30: Just before Christmas, Italy published plans to tax all visiting Private aircraft that stayed longer than 48 hours. The figures were astonishingly high - for a private Gulfstream G-IV the annual tax would be about $320,000 USD. Don't panic yet. The law is still not in effect, this cannot happen before March 1st - but even at that point, there will be a significant amount of judicial challenges that will likely delay it for a long time, or better still, reject it altogether. Stay tuned.

[Pace]

This maybe of interest?

New tax may kill Italian GA

Italy is rethinking its new general aviation tax on foreign-registered
aircraft as it becomes clear it will raise far less money than
expected and will damage the economy in ways that were not taken into
account. This is a good time to reinforce Italy's doubts by writing to
your local Italian Embassy pointing out the problems you have with the
tax.
The annual tax on private aircraft is part of Italy's response to its
economic crisis and supposedly hits only the rich. Unfortunately it
applies to all private aircraft that stay in Italy for 48 hours or
more, which makes it risky even to transit Italy; a technical problem,
bad weather, or an ATC strike could saddle a pilot with a bill for
thousands of euros. AOPA Italy members are preparing to shoulder a
share of the burden of digging the country out from under the mountain
of debt run up by the government, but IAOPA-Europe is opposed to the
extension of the tax to non-Italian registrations.
The international response has been partly responsible for the
decision to take a second look at the tax. The 'official' calculation
says the government will make €85 million from it, but AOPA Italy has
calculated the tax on the basis of the number of eligible aircraft and
helicopters based in the country at €3,520,000, plus whatever can be
raised from foreign-registered aircraft. Set against that the certain
loss of tourism income and the picture looks very worrying. Some 10
percent of private Italian aircraft have de-registered since the tax
was announced, and the requirement to pay a further €3,000 a year to
keep an aircraft will drive more people out of GA.
AOPA Italy is seeking a change to make foreign aircraft pay the tax
only after they have spent 90 days or more in Italy, and to have
foreign aero club aircraft exempted. Domestically, they want more
information on the exact tax levels – for instance, it’s not known
whether a Piper PA28 with an MTOW of 1,247kg pays the €1.5 per kg tax
for the first 1,000 kg plus €2.5 for the remaining 247 kg (€2,117.50)
or whether it pays the €2.5 per kg set for aircraft between 1,000 and
2,000 kg on the whole MTOW (€3,117.50). Are historical aircraft and
microlights included? Much remains to be settled.
For Italian GA, the future looks bleak. Would you be able to continue
flying if you were suddenly faced with an additional bill of more than
€3,000 a year, even before you'd flown a single hour? As non-Italian
pilot, you can help yourself by writing to your local Italian Embassy
expressing your reluctance to visit Italy under the circumstances, and
pointing out the loss of tourist revenue your absence represents. To
find the address of the Italian Embassy in your country,

[Katamarino]

I've emailed the local embassy. I hope it helps!

[peterh337]

Irrespective of your views on whether Italy can, or should, raise tax in that way, there is a fundamental issue of fairness here, which is screwing an aircraft which cannot fly because

- it has broken down
- it is being worked on
- it is waiting for parts
- the owner got run over by a bus and is dead / recovering / etc
- the pilot got into bad wx, landed, and is unable to leave due to continued bax wx
- the pilot stopped for just 1 day but cannot leave Italy due to bad wx (which let's face it could happen to any aircraft, even a bizjet)
- as above but cannot depart due to airport closed (due to equipment, crash, etc - imagine a case where 20 visitors are parked there and somebody wrecks the runway, and after 48 hrs the Italian tax collector will go round and collect 5 or 6 figures from the parked visitors :ugh: )
- etc
- etc

A country with the slightest pretence of civil liberties and not run by totally idiotic up-yours conmen has to make a provision for the above factors, with a framework of exemptions which need to be authorised by somebody with a specified authority.

In the case of an EASA reg type the authority would need to be tied into Part M, but in the case of a foreign reg one it would need to be signed off by an appropriate authority e.g. an A&P/IA for an N-reg. This would be horribly complicated.

I am no lawyer but would be amazed if trapping such people would stand up if some rich victim decided to properly exhaust the legal options (ECJ for example).

France and the UK abandoned long term parking controls like that in 2004/2005, probably for these reasons as much as the controversy. One can understand Italy not giving a t055 about what anybody thinks, but if people can sue for compensation then it is all a bit pointless...

Until this is resolved, I will not even enter Italian airspace, which for me, with a 1300nm range, is not a significant hardship :ok:

[badwx]

Unfortunately I could not find this official document in english, but seems that yesterday the special tax has been confimed (pdf taken from official italian revenue agency website):

http://www.agenziaentrate.gov.it/wps/wcm/connect/1f4280804a083d3fa913abf04737a844/provvedimento+imposta+aereomobili.pdf?MOD=AJPERES&CACHEID=1f 4280804a083d3fa913abf04737a844

Is there anyone that can give more information and confirm that?

Thank you

[what next]

Hello!

Is there anyone that can give more information and confirm that?

I can't give you any additional information, but after reading the document in the link I can confirm that the tax is being levied as decided in December 2011. This document is about the formalities of how to collect the money. It confirms again, that all Italian private aeroplanes and all foreign private aeroplanes that stay within the Italian territory for more than 48 hours are subject to taxation.

[badwx]

Thank you what next,

Now I think is really suggested to stay away from italian airports and look for alternative airports outside the Country (as I said in a previous post Lugano for Milan area for example), or consider a passenger drop and repositioning of the aircraft in case of stops of more than 48 hours.

[READY MESSAGE]

This new luxury tax became law back in December. There was a hastily and badly written addition to include all privately operated aircraft as opposed to just Italian registered aircraft for which it was originally intended. The law makers have until February 6th to advise how (and indeed if) this law is to be enforced, when and where the tax will be collected etc and finalise the legislation.

The Italians don't know how this is going to work and it's suspected that it will revert to apply to Italian registered aircraft as was originally drafted or worst case that non Italian aircraft will be charged on a pro rata basis. Either way, it's bad news for Italian GA. :ugh:

Maybe we will hear something more definite during the week

[badwx]

Are you sure that they have time until february 6th? From the link that I posted three posts above this, seems that the final decision has been taken already (the document has been taken from the official italian revenue agency (taxation office) website and is dated 3rd of february. Unfortunately it is only in italian but i'll keep looking for the english version...

[READY MESSAGE]

The company I deal with in Italy told me that whilst it is law already, it is the implementation, enforcement and practicalities of the new legislation that is to be decided by February 6th. Despite it already being law nobody knows how the tax is to be collected, where it is collected or by who!

[AN2 Driver]

If I understand it correctly, the document linked above sais how to pay it. Even gives the iban nr....

[Check 6]

No worries, the Italian government will create a new agency staffed by political cronies and relatives. The budget of the new agency will exceed the income produced from the new taxes. :E

[Grassfield]

Besides the many issues of this new tax, such as the actual benefit of it to Italy, the issues mentioned by peter337 can someone please confirm whether this will be on a prorata basis (which i seriously hope) or not.

E.g. if staying for a 3 day long weekend on Elba, Sardinia or any other enjoyable place :), I sincerely hope (naively?) that one get's charged only 3/365 of the fee... and not get wacked with the full amount. I hope, but you never know with authorities... Does any one have a view of this?

Needless to say, if one gets slammed with the full yearly amount for staying e.g. 2.5 days, then the GA based touring, including weekend stays, will diminish significantly...:ugh:

[what next]

...can someone please confirm whether this will be on a prorata basis (which i seriously hope) or not.

No, yearly only. The new parking fees at Elba will prevent you from staying there over the weekend anyway...

[Grassfield]

Jeeesus, there goes my plans to visiting Elba and Venice Lido again, and my plan to go to Sardinia or similar for the first time... I'm really frustrated by this...:(

I really hope the Italians and their lobbyists get their act together to come up with something more pragmatic for short term stays, rather than flogging the visitor with the full year taxation!

[what next]

Jeeesus, there goes my plans to visiting Elba...

Fly to Corsica and swim across, it's not far... But you are perfectly right, for flying tourists a short term taxation will be required, otherwise nobody is going to come (they do it with boats, why not with aircraft?).

In case you didn't read everything: Aircraft that are operated by flying schools, aeroclubs and other training organisations are excempt from the tax, maybe that applies to you?

[VIKING9]

So is this tax in place now or not ?

Different stories coming out of different local people (in Italy)...:E

[His dudeness]

According to the Italian Embassy in Berlin it is.

[Pace]

My jet owner wants to go to Sicily end of march for a week in a Citation 550 what will he have to pay for the privalage of leaving it there for the week?

How does this tax work as surely it must be different if you fly in there in a Falcon or a PA28 ?
Only way around would be to drop him and leave jet at Malta? any better ideas?

Pace

[chubbychopper]

Pace,

1. Malta would be your best bet from there, and the fuel is a LOT cheaper.
2. It's based on MTOW. Any Falcon would attract a substantially larger fee than a PA28, but you know that already...you posted details about the charges previously.

[Detling]

Italian stupidity at its worst

[VIKING9]

My Italian agent has told me yesterday that the tax is NOT paid by overseas registered/owned aircraft. Only if Italian registered.:ugh:

[badwx]

My Italian agent has told me yesterday that the tax is NOT paid by overseas registered/owned aircraft. Only if Italian registered.:ugh:

Only in case you stay for less than 48 hours, otherwise the new law will be applied also to non-italian registrations. :uhoh:

[Dg800]

So is this tax in place now or not ?

Yes, it is and it has always been effective as of December 27th, the snag being that until recently there was no way anybody could actually pay what was due as the modes and terms of payment were not specified in the body of the law itself, as they never are. Now we know that an owner is supposed to "spontaneously" pay his dues either through his tax declaration (obviously applies only to Italian residents) or by means of a bank transfer to a public bank account (IBAN number provided).

How this is supposed to be enforced and who, if anyone, will actually be tasked with enforcing it is still the subject of speculation. Keep in mind that the tax is not due as soon as your wheels touch Italian soil, but only after 48 hours of uninterrupted stay, and tax authorities need to be able to prove it or charges won't stick. Read into that what you will... ;)

Ciao,

DG800

[Fitter2]

It appears that the tax has questionable legality:

Von: [email protected]
[mailto:[email protected]]
Gesendet: Montag, 13. Februar 2012 18:04
An: [email protected]
Betreff: Your Europe Advice enquiry 100562

Dear Sir/Madam,

Please find below the reply to your enquiry. Please note that the advice
given by Your Europe Advice is an independent advice and cannot be
considered to be the opinion of the European Commission, of any other EU
institution or its staff nor will this advice be binding upon the European
Commission, any other EU or national institution.

Dear Mr Pirker,

In the frame of its decreto-legge no 201
salva italia
of 6th December
2011 the Italian government is indeed about to impose a significant tax on
all private use aircraft, including gliders and balloons, whether they be
registered in Italy or transcients from other countries. Article 14 bis of
the decreto-legge seems to impose the tax on foreign registered aircraft
that remain in Italy for more than 48 hours with the possible consequence
that a foreigner visiting or conducting business in Italy in an aircraft or
2 days must pay the same amount as does the Italian resident for an entire
year. This could mean for you that you have to pay a lump sum of
450 per
year if you fly to Italy with your glider or balloon and stay there for
longer than 48 hours.

Once applicable, Article 14 bis of the decreto-legge could therefore indeed
pose a problem under European law:

It could discriminate EU citizens who are not resident in Italy against
Italian residents and and it could form an obstacle to the functioning of
the European Internal Market.

Incidentally, the imposition of taxes on foreign registered aircraft may
contravene provisions of Article 15 of the International Civil Aviation
Organisation’s Convention on International Aviation.

As far as we know, the Italian Aircraft Owners and Pilots Association has
already approached the European Commission and the Italian government on
this issue.

You can download the decreto-legge under
download.repubblica.it/pdf/2011/senato3.pdf and the ICAO Convention on
International Aviation on
UNHCR | Refworld | Convention on Civil Aviation ("Chicago Convention") (http://www.unhcr.org/refworld/publisher,ICAO,,,3ddca0dd4,0.html).

Finally, the Italian Aircraft Owners and Pilots Association’s statements
on this problem are available under
A.O.P.A. Italia - Aircraft Owners and Pilot Association (http://www.aopa.it/info.asp?ID=137&page=1).

Yours sincerely
Your Europe Advice

[what next]

It could discriminate EU citizens who are not resident in Italy against
Italian residents ...

Did they ("Europe Advice") really read and understand that law before writing their letter? The tax also applies to Italian residents, therefore this point will certainly not help.

But maybe

Incidentally, the imposition of taxes on foreign registered aircraft may contravene provisions of Article 15 of the International Civil Aviation
Organisation’s Convention on International Aviation.

will provide some leverage.

[Fitter2]

Did they ("Europe Advice") really read and understand that law before writing their letter? The tax also applies to Italian residents, therefore this point will certainly not help.

Yes, they did:

Article 14 bis of
the decreto-legge seems to impose the tax on foreign registered aircraft
that remain in Italy for more than 48 hours with the possible consequence
that a foreigner visiting or conducting business in Italy in an aircraft or
2 days must pay the same amount as does the Italian resident for an entire
year. This could mean for you that you have to pay a lump sum of
450 per
year if you fly to Italy with your glider or balloon and stay there for
longer than 48 hours.

Once applicable, Article 14 bis of the decreto-legge could therefore indeed
pose a problem under European law:

[what next]

Yes, they did:

In my understanding of the law there is no discrimination here. On the contrary: The owner of the Italian registered plane has to pay in any case (even if his aircraft is based in the Bahamas and he never intends to visit Italy) whereas foreign registered planes can fly to Italy as often as they like without tax, provided they depart after 47:59 hours (maybe for one traffic pattern?). The same principle applies to the Swiss motorway tax: The residents who use the roads every day pay the same amount as the tourist who crosses Switzerland in two hours on his way to a French ski resort. No one has ever filed a discrimination complaint because of that. (I know, Switzerland is not in the EU, but similar motorway taxes exist in other contries).

Don't get me wrong, I do not want to defend this law as it is, I simply don't believe that it can be brought with this argumentation.

[Shorrick Mk2]

The same principle applies to the Swiss motorway tax: The residents who use the roads


And therein lies the problem - the Swiss motorway tax is a flat usage tax (one may think that it is a tad steep @40CHF... however going to Cannes one way on French motorways is going to cost you more than that)

Whereas you could argue that usage of Italian airspace and airport infrastructure is (or should) already be covered by ATC and landing fees and this new tax is nothing else than a wealth tax as opposed to an usage fee.

[AN2 Driver]

what next:

If we were talking of a 40$ tax and would have to glue a sticker on our plane, I think we might grumble but just do it.

The problem with what they do here is very different.

First of all, the amounts are totally outrageous.
Secondly, there is a discrimination against foreign based and owned airplanes, insofar as that Italians have the possibility to actually pay fractional amounts if the aircraft has not been immatriculated for the whole period, foreign aircraft are charged the FULL tax after 48 hours.
Thirdly, they are violating essential ICAO and European law.

It is encouraging to see that whoever Europe Advice are seem to think along the same lines. I do hope that there will be court decisions on this soon, so this garbage will have to be retracted. Until then: Avoid Italy.

[stuckgear]

if you fly to Italy with your glider or balloon and stay there for
longer than 48 hours.




so what happens if your ballon or glider enters Italy on a trailer ? or if it flies into italy and then is packed down into a road trailer ?


wouldn't then amount, in essence, to an 'import duty' ??

further to that, could a heavier than air / powered aircraft of foreign registration, receiving a taxation demand for being on Italian soil longer than 48 hours also be considered a form of 'import duty'?

[what next]

Secondly, there is a discrimination against foreign based and owned airplanes, insofar as that Italians have the possibility to actually pay fractional amounts if the aircraft has not been immatriculated for the whole period, foreign aircraft are charged the FULL tax after 48 hours.

If I read the text correctly, the fractional amounts apply to all aeroplanes that have not been on their register all year. Anyway, if you know the hassle involved to put something on any register in Italy, you would rather pay the tax than de-register and re-register...

Thirdly, they are violating essential ICAO and European law.

The problem is, that there is no such thing as ICAO law or European law. ICAO and the EU-treaties are multi-national contracts with the aim of producing common national laws. But we are very far from that goal. Just look at the first Jeppesen binder: 80 percent of it's contents is about national differences to ICAO standards. Here, we just have one such difference more.

Italy is currently caught between a rock and a hard place: Either they violate the Euro-stability criteria by not collecting enough taxes to stabilise their national budget or they violate some aviation and tax treaties by imposing injustified taxes on a handful of persons.

[Shorrick Mk2]

that there is no such thing as ICAO law or European law. ICAO and the EU-treaties are multi-national contracts with the aim of producing common national laws. But we are very far from that goal. Just look at the first Jeppesen binder: 80 percent of it's contents is about national differences to ICAO standards


Actually it's not exactly like that. Any supranational agreement has "force of law" albeit not being called "law". Thus the ICAO Convention is in fact law, whereas the SARPS are not as they are not supranational treaties (hence the differences you mention...). As far as European law - there is already a huge body of European laws!

Further on, international agreements once signed and ratified supersede national law. Any decision taken on the basis of a national law that is in contravention to an international agreement the country is party to is null and void and can be attacked in justice. This is established practice, and vast amounts of jurisprudence attest to this.

Not that it helps much when you have your plane impounded - but.

I for one wouldn't dare say in public that collecting taxes on planes is going to help Italy abide by the euro-stability criteria... that's like saying you're going to fill your swimming pool with a teaspoon.

[silverknapper]

Well they are chasing it, through handling agents initially it seems.

[Dg800]

In my understanding of the law there is no discrimination here.Oh yes there is. Think of a German entrepreneur who travels to Italy to do business on his foreign registered, non-AOC company plane. Let's say he has to compete with an Italian company that wants to offer the same service/goods. The Italian entrepreneur will travel on a similar plane and, while it is true that he will pay the same Italian tax on it (provided he is not exempt through an AOC), he will not get to pay any tax that the German company has already paid for the same plane, in their country of origin!

So we have a situation here where a foreign competitor will have to recoup higher costs than a local one, thus giving the Italian competitor an unfair advantage. The only way to dispose of this unfair advantage is either by making the Italian competitor pay German taxes as well, which would be silly and completely unenforceable to boot, or by making the foreign competitor only pay taxes in their country of origin. It would be akin to a foreign airline having to pay, say, Italian social security contributions for their employees if they operate to and from Italy in addition to any contributions they already pay for them in their (the employees') country of residence. This would create a huge unfair advantage for Italian airlines and effectively push the foreign competitor out of the market.

There's a boatload of EU regulations in place exactly to prevent this kind of situation arising and to ensure a fair and free access to EU-wide markets to any of its members, this law obviously contravenes them and can, and hopefully will, be challenged in a EU court.

Ciao,

DG800

[Dg800]

Well they are chasing it, through handling agents initially it seems.

Do you have anything more specific?

[Shorrick Mk2]

In my understanding of the law there is no discrimination here. On the contrary: The owner of the Italian registered plane has to pay in any case (even if his aircraft is based in the Bahamas and he never intends to visit Italy) whereas foreign registered planes can fly to Italy as often as they like without tax, provided they depart after 47:59 hours (maybe for one traffic pattern?).


No "discrimination" - but still illegal. See art. 15 of the ICAO convention:


No fees, dues or other charges shall be imposed by any contracting State in respect solely of the right of transit and entry into or exit from its territory of any aircraft of a contracting State or persons or property thereon

The law as it is worded now is can be construed as an entry / exit tax and in direct violation of the above.

[what next]

The law as it is worded now is can be construed as an entry / exit tax and in direct violation of the above.

I don't know. There is no tax for entry or exit, only for prolonged stay. This is not forbidden in the referenced ICAO article.

[Shorrick Mk2]

Correct, but "prolonged stay" or the duration of stay is defined by "entry" and "exit"... in other words you can exit free of charge only before H+48. :=

[Pace]

Not good ! 300,000 euros for a large biz jet the Italians have lost their marbles!

Italy Plans to Tax Private Aircraft | NBAA - National Business Aviation Association (http://www.nbaa.org/admin/taxes/intl/italy/)

Pace

[aviation2]

Speaking to a G550 crew this week, they just dropped their principals off in Italy and immediately relocated to Croatia to park up the aircraft for some time before they pick up the pax again. They use Universal for flight planning and certainly believe that they would have incurred EUR300,000 or so if they got stuck in Italy for any reason for longer than 48 hours.

They are going to try to avoid trips to Italy again in the future due to this risk, so Italy has just lost some very high net worths who invest and spend heavily wherever they choose to go. Even this time, Italy has lost parking charges and crew local spending. Multiply that thousands of times over and Italy has got to have lost out of this ridiculous tax.

And with the risk of some unforeseen event delaying departure of a business jet, Italy will soon be a no-go territory for private aircraft and their passengers, just like the worst parts of Africa or Latin America are from a kidnapping or crime point of view if you are seen to come in in an expensive aircraft.

[Pace]

Aviation2

I also have a trip coming up to take the owner to Sicily, leave him for a week and then overnight in Venice.
I will drop him locate to Malta, collect him and then into Venice and away.
The big risk is if on any of these stages a mechanical problem arises which would make a departure impossible.
The owner will do this trip as its arranged but in future will also go elsewhere and take his money with him as even with this planning a mechanical fault could be very expensive.

Pace

[AN2 Driver]

Pace and all,

it might be an idea to somewhere collect the details of everyone avoiding Italy and the extimated net loss to the Italian economy this avoidance does.

[badwx]

Hi all,

after few weeks from the "presumed" introduction of the famous tax, does somebody here have some evidences of the implementation?

Thank you!
Cheers and wish you a nice weekend
Marco

[stephenwilliams40]

According to several Italian FBO's they have not received any instructions regarding how this tax is to be collected. Currently it is not being collected at the airports.

[Pace]

The problem is whether it is set in law now?
It's all very well saying that no body has yet been charged but they could be!
If it was a relatively small amount then it would be worth taking the risk
But as it stands you could be the guinea Pig for a charge which would cost a fortune!
Until the regulation is clarified its a risk that's too big to take.

Pace

[flydive1]

Pace

Yes it is set in law.

The only thing is not clear yet and nobody seems to know is how much a foreign aircraft should pay, year, month or what.

As you said everybody is avoiding Italy because of that, not wanting to be the one caught out by it.

[chubbychopper]

It will be interesting to see what effect this has on the corporate traffic going into the busy places such as Linate and Ciampino.

There may well soon be a thinning out of handling agents and maintenance companies in Italy.

It may well have been a joy for the law makers and bureaucrats to dream up, but this tax is as daft and as well thought out as the EU ETS. Given time both of them will go away.

[what next]

It will be interesting to see what effect this has on the corporate traffic going into the busy places such as Linate and Ciampino

I was in Linate very recently and it dosen't seem to have any effect at all. The place was crowded as usual. Obviously most visitors to Linate either fly commercially or don't care too much about that tax (a few weeks back I asked the handling agent of anorher italian airport about the tax and he replied: "Don't worry, nobody is ever going to pay it.").

[Pace]

The owner of my Jet is going to Sicily this week. I am going to drop and go to Malta leave it there for the week and collect unless the HA in Sicily are prepared to accept all responsibility for the tax if they say it wont happen and it does.

Pace

[wallypilot]

We're going to Ciampino next month and our owners are staying a few days...we're repositioning to Dubrovnik to avoid the tax. Our lawyers tell us we are subject to this rule (C-registered), so we'd be on the hook for about 140000Euro at our MCGTOW.

[Pace]

I went into Catania in Sicily a couple of days ago with the intention of positioning to Malta.
Spoke with the handlers who confirmed the tax and understood why we left for Malta.
Maybe a few handling agents and airports will start complaining at the lost income.

Pace

[His dudeness]

All the positioning will cause more revenue to all involved:

ATC, handlers, airports, the states via taxes,ATC and ETS, and finally the fuelers.

Hotels in Italy might lose a bit, but everyone else will like it. Except the owners of course.

Bloody politicians

[cldrvr]

I was discussing this issue with pax only a few weeks ago. Two of the pax onboard have decided to move their boats elsewhere purely based on this tax. I checked my logbooks and have roughly been to Italy 20-25 each year, in the last few years flying "my main aircraft" there, staying several times on most occasions, it now looks like we will be avoiding Italy all together. So that's quite a bit of plane and boat fuel they are missing and all associated spending with us as crew staying overnight roughly 25 days a year and 2 decent sized yachts and associated passengers that no longer will be spending any money in Italy.

I don't know if we are a true reflection of passenger behaviour due to this tax, but there must be more like us out there. I have not a single trip to Italy scheduled in the foreseeable future, unlike previous years around this time.

I wonder if we would ever see a proper traffic count in a few years to see what effect this new tax has had on "footfall"

[His dudeness]

Have you asked your guys to make this fact known to the Italian government?

In our case, we either still fly there or our flights will be done with chartered aircraft. But we are there purely for business and not leisure...

[cldrvr]

I agree with you and also think that "business" flights will not be adversely affected that much, however we never went there for business, pure leisure and at our weight, the added tax is just not worth going there when the principals can just about get the same for less money in the South of France and if they do decide to visit the islands, they will now just take the boat over instead of the aircraft. None of them owned any property there (as far as I know) and were just leisure visitors.

Not sure how foreigners that actually own property there and go there just for leisure are going to alter their behaviour based on this tax.

As to your second part of your post, I don't really see the point in "letting them know", I think they could care less. This tax is just another example of a tax on the rich to please the masses.

[Katamarino]

I emailed their embassy here in Holland to object, and point out the loss in visits. They didn't even bother to reply.

[AfricanEagle]

An emendment to the law regarding the tax on foreign aircraft stopping over in Italy has been approved today increasing the duration of the stopover from 48 hours to 45 days. It now has to be ratified.

[cldrvr]

Interesting AE. Is that cumulative or consecutive? Got a link? (in English?)

[AfricanEagle]

Interesting AE. Is that cumulative or consecutive? Got a link? (in English?)

Sorry, no link in English yet.

Can't answer if cumulative or consecutive (not specified) but IMHO it is consecutive. Most of all, consider that this is aimed at Italian residents that own foreign registered aircraft. Always IMHO, foreign owned aircraft are hardly going to be targeted, the lawsuits would be too expensive for the Italian goverment ;)

Tax on foreign registered aircraft were a last minute addition to the original law because someone realised that all Italian owners would transfer Italian registered aircraft to other countries to not pay a stupid tax. It was written hastily by a "differently intelligent" member of parlament who did not have a clue of the international implications.

[flydive1]

Un link in Italiano?

[cldrvr]

Maybe some of us avoiding Italy is making a difference in their attitude towards taxing visitors.

[AfricanEagle]

In Italian, interested part at page 49: 3-bis.8.Il Relatore

Camera.it - Lavori - Resoconti delle Giunte e Commissioni - Dettaglio resoconto (http://www.camera.it/453?shadow_organo_parlamentare=1499&bollet=_dati/leg16/lavori/bollet/201204/0416/html/06)

[cldrvr]

Translation anyone?

[flydive1]

Google cleaned up a bit

14-bis. The tax referred to in paragraph 11 is also applied to aircraft not registered in the National Aeronautics Register held by ENAC, which stop in the Italian territory shall extend over forty days continuously. For the purposes of such term shall not be considered periods of stop for maintenance at national aircraft maintainers performing maintenance on the aircraft that fare part of the records of the maintenance technicians. The tax must be paid before the airplane returns to foreign territory. If parking in the Italian territory extends over a period of less than a year, the tax is payable in an amount equal to one twelfth of the amounts set out in paragraph 11 for each month from the arrival until the departure from the territory Italian. The exemptions of Article 14 apply and the exemption is extended to aircraft of foreign countries, including military ones.
15. By decision of the Director of Revenue, to be issued within sixty days from the date of entry into force of the law of conversion of this decree, there are procedures and deadlines for implementing the provisions of paragraphs 10-a and 11.
15-bis. In case of failure to pay or insufficient payment of taxes as per paragraphs 10-11a and the provisions of Legislative Decree 18 December 1997, n. 471, and Legislative Decree 18 December 1997, n. 472 ';
d) after paragraph 15-a is added as follows:
"15-b. The Guardia di finanza (Financial Police) and airport authorities will ensure proper compliance of obligations under the provisions of paragraphs from a 10-to 15-bis of this Article. "

2. The amendments made by subsection 1 paragraphs 11 and 14 and subsection 14-bis of Article 16 of Decree-Law n. 201 of 2011, ratified by Law n. 214, 2011, shall apply, respectively, from December 6, 2011 and from December 28, 2011. For aircraft referred to in subsection 14-bis of Article 16 of Decree-Law n. 201 of 2011 which, as of December 28, 2011 until the date of entry into force of this Decree, have been kept in the country for a period exceeding 45 days the tax is paid within ninety days from the date of entry into force of the law Conversion of this Decree. The amount of tax referred to in paragraph 11 of Article 16, paid in pursuance of the provisions previously in force in excess of the amount established by this Order, account shall be credited to the taxpayer at the time of the next renewal of the certificate of airworthiness review ; not proceed to the application of penalties and interest on tax payments pursuant to paragraph 11 of Article 16, taken under the earlier provisions to a lesser extent than that established by this decree, if the excess is paid within ninety days from the date of entry into force of the law of conversion of this Decree. ».

And

a) after paragraph 10 is added as follows:
"10-bis. The state treasury is hereby imposes a tax on passenger of air taxi flights. The tax is due for each passenger and for each leg, is fixed in the sum of 100 euros in case of route not more than 1,500 km and 200 euros in case of more than 1,500 route miles. The tax is payable by the passenger and then paid by the carrier ";

[dirk85]

COMMERCIAL OPERATORS NOW INCLUDED IN THE MODIFIED ITALIAN TAX

The Italian government has worked upon an amendment to the controversial Italian Luxury Tax originally adopted in December 2011. The amended version will result in a set of new rules that will quite considerably change the obligations of Italian and foreign operators to Italian tax authorities. It will be presented this afternoon to the Senate and voted on by the end of the week, after having been approved without changes by the Lower House of Parliament. It will eventually supersede the rules established by the decree in December 2011.

The new rule introduces a tax on Italian and non-Italian commercial operators. This new tax on 'aero-taxi' will be paid by each passenger for each leg and is equivalent to 100 € on legs of less than 1,500km and 200 € for legs above 1,500km; the fee will be paid by the operator around modalities not fixed yet but which will be set by the Tax Office within 60 days from now. According to our interpretation, a return flight to Italy consists of two legs and will therefore require a double payment of the above-mentioned figures. Any additional domestic flight inside the Italian territory will count as an additional leg. This is a “new” tax, imposed this time on passengers of air taxis. This move of the Italian authorities is unfortunately in line with the taxes already existing in other countries (UK, Austria, Germany).

As regards the tax on non-commercial operations established in December 2011, the amounts initially considered have been reduced by 50% (e.g. for aircraft up to 1,000 kg, 1.5 €/kg were foreseen, while in the amended version this has been dropped to 75 ¢). These amounts will continue to be charged to both Italian and non-Italian operators however the significant change compared to the previous rule is that non-Italian non-commercial operators will be charged only if the aircraft stays more than 45 days on Italian territory instead of the previous limit of 48 hours. Non-Italian registered aircraft having spent more than 45 days on Italian territory will be subject to the tax on a pro-rata monthly basis, i.e. 1/12 of the annual rate for each month spent in Italy in excess of the 45 days tax exemption period. The tax and airport authorities will monitor actual payment. According to the new rules this change will be applied retroactively to December 2011 so in other words and in our opinion the Italian government has realized this tax was a mistake negatively affecting foreign investments and has decided to downgrade it to an almost irrelevant degree.

EBAA continues to coordinate with the Italian stakeholders and regulators its political action both at European and Italian level so as to ensure that decision makers are informed of the impact of these measures.

Pedro VICENTE AZUA

Chief Operating Officer

European Business Aviation Association (EBAA)
Phone: +32 2 766 0070
[email protected]
www.ebaa.org

[peterh337]

These amounts will continue to be charged to both Italian and non-Italian operators however the significant change compared to the previous rule is that non-Italian non-commercial operators will be charged only if the aircraft stays more than 45 days on Italian territory instead of the previous limit of 48 hours. Non-Italian registered aircraft having spent more than 45 days on Italian territory will be subject to the tax on a pro-rata monthly basis, i.e. 1/12 of the annual rate for each month spent in Italy in excess of the 45 days tax exemption period.

This is a big improvement but the interesting bit is how exactly they will define "under maintenance" which I believe is an exemption provided for somewhere.

Will it mean that the aircraft will have to be "under" some Italian maintenance shop, if still grounded beyond the 45 day point? At most airports, you are not going to find a suitably competent maintenance facility so will probably be arranging someone to come over to fix it.

They are hardly going to permit the pilot or the owner to self-declare non-airworthiness as this would lead to obvious work-arounds.

[4x4]

Would any of our Italian colleagues be able to enlighten me as to whether this Law has been passed or not......yes, we are all aware that there has been an amendment made, but has this been passed into Law yet.....I am desperately in need of an answer to this, ie by Monday......as the owner of the Aircraft, who is by the way, Italian......does not trust the Italian Government, until he has supportive documentation saying that he won't be hit with a vast bill, for bringing his G550 into Italy for a week.

Unfortunately, my Italian is schoolboyish at best, but any links to a Government website actually explaining whether this is law or not would be very welcome.

[Pace]

4x4

I flew into Sicily 3 weeks ago and like you was unsure whether the owner of my jet would be charged.
Talking to the handling agents there they were also unclear.
On that basis and because of the massive amount the tax would be I positioned the aircraft into Malta for the week.
My fear was someone telling me that the 45 days was a proposal not yet in law so cough up.
The Italians are not known for doing anything fast so until you see it has been passed into law and rubber stamped I would be cautious???

Pace

[dc9-32]

Foreign aircraft can park in Italy for 45 days without paying the tax. This is effective 17th April and not changed since then.

[Pace]

Grazie tantissimo

Pace

[Grassfield]

Dc9-32, could you please provide us with a source for that. I'm planning to fly to Italy very soon and would like to ideally bring some piece of paper that the 45 day rule re Tax is now in force. Thanks.

[His dudeness]

Grassfield,

what I have is a German text by the first secretary of the Italian Embassy in Berlin / Germany.

He states that the Italian Parliament has decided on the 24th of April in favour of the Governments decree Nr.16 , which contains the changes in the Luxury tax for Airplanes (45 days etc.)

Maybe you just ask your Embassy for an explanation in Swedish?

This is the link to the italian parliaments paper (pages 49 & 50)

Camera.it - Lavori - Resoconti delle Giunte e Commissioni - Dettaglio resoconto (http://www.camera.it/453?shadow_organo_parlamentare=1499&bollet=_dati/leg16/lavori/bollet/201204/0416/html/06)

I sent this link to the guy in the Embassy and asked wether its in force or not and he said yes.

Hope that helps a bit...

Yours

h_d

[Grassfield]

Sorry for late reply.

His D, many thanks. Just what I was after.

This now seems to be the proof that the 45 day rule is in force, excellent! Will carry a printout of this with me, just in case...

Happy flying!

[donPablo]

Hi,

did anyone paid any of this new taxes lately ??? Mostly I mean for short stay, such as this per leg/distance taxes described above ?

Brokers started to ask about that, if it's included into the prices, so seems like maybe somebody started to charge it ?

Thanks !