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Brazil Reduced Income Tax Rates on Aircraft Lease Payments Through 2026 Signed into Law
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Brazil Reduced Income Tax Rates on Aircraft Lease Payments Through 2026 Signed into Law

On 1 June 2022, the Brazilian government announced the signing of Conversion Bill No. 7 of 2022 (Provisional Measure No. 1.094 of 2021) by President Jair Bolsonaro, which provides reduced income (withholding) tax rates on operations involving payments from sources in Brazil to legal entities abroad as consideration for a leasing agreement for aircraft and aircraft engines.

The reduced income tax rates apply in relation to leasing agreements entered into by air transport companies engaged in passenger and cargo transport…

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