The Ministry of Transport establishes reductions in value added tax ("VAT") for (i) passenger air transport, and (ii) Jet A1 and/or domestic aviation gasoline. It also extends to the aviation industry the tax benefits provided for the "Mega Investments" regime.

Nuevos incentivos tributarios para la industria de transporte aéreo

Due to the declaration of the Economic, Social and Ecological Emergency, and in order to mitigate the economic vulnerability of air transport, the Ministry of Transport issued Decree 575 of 15 April 2020.

Among the measures adopted are the following:

  1. The possibility of accessing the tax benefits of the "Mega Investment" regime is extended for new investments in the national aeronautical sector that must be initiated before December 31, 2021.
  2. VAT rates are reduced to 5% for (i) passenger air transport service, and (ii) Jet A1 and/or domestic aviation gasoline. These VAT changes will be in effect until December 31, 2021.
     
For more information contact our team
Learn more about