Doc 8632. Edition 3
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ICAO’s Policies on Taxation in the Field of International Air Transport
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Doc 8632ICAO'S POLICIESON TAXATIONIN THE FIELD OFINTERNATIONAL AIR TRANSPORTTHIRD EDITION 2000Approved by the Council on 24 February 1999Published by direction of the CouncilINTERNATIONAL CIVIL AVIATION ORGANIZATION
ICAO'S POLICIESON TAXATIONIN THE FIELD OFINTERNATIONAL AIR TRANSPORTDoc 8632Third Edition 2000
iiiFOREWORDAfter a comprehensive study of the various existing and anticipated problems related to taxation inthe field of international air transport, the Council in 1951 adopted 3 Resolutions and a Recommendation onthe subject which were published in Doc 7145-C/824. In response to Assembly Resolution A15-16 whichexplored the possibility of a new initiative in this field the Council undertook a comprehensive review of allaspects related to this subject matter and, at the Fourth Meeting of its 59th Session, on 14 November 1966,decided to recast the Resolutions and the Recommendation, taking into account developments since 1951,while reaffirming at the same time their underlying principles. The Council further decided to publish themin the policy document, Doc 8632-C/968, for action by Contracting States and to provide certain explanatorymaterial for guidance to States and international operators.The 1966 Resolutions/Recommendation dealt withitaxation of fuel, lubricants and other consumable technical supplies when an aircraft registered in oneState arrives in or departs from a customs territory of another Stateiitaxation of fuel, lubricants and other consumable technical supplies when an aircraft registered in oneState makes successive stops at two or more airports in one customs territory of another Stateiiitaxation of the income and aircraft of international air transport enterprises andivtaxes related to the sale or use of international air transport.The Assembly, at its 26th Session in 1986, adopted Resolution A26-15 which instructed the Councilto review compliance with these Resolutions and Recommendation and to consider the need for new practicalmeasures to reaffirm and strengthen the principles underlying its policies in this field. After consultation withStates the Council reported the results of its review to the 29th Session of the Assembly which agreed withthe Council's approach to the revision of the 1966 Resolutions and Recommendation, the results of whichwere published in a second edition of this document in January 1994. The 29th Session of the Assembly alsoreinforced the importance of this policy statement by adopting Resolution A29-18 which called upon Statesto follow the Resolutions of the Council as contained in this document.During the 1996 - 1998 triennium, the Council undertook a comprehensive review of the policies andconcluded that the four resolutions remain fundamentally sound but should be consolidated, withoutsubstantive change, into a single resolution. The purpose of the consolidation would be to provide States andother users with a shorter, transparent, and more useful and convenient presentation of the Organizationsposition on taxation. This approach was noted by the 32nd Session of the Assembly, which reflected thethrust of Resolution A29-18 in a new Consolidated Statement of continuing ICAO policies in the air transportfield, Resolution A32-17 Appendix E.At the 3rd Meeting of its l56th Session, the Council adopted the consolidated Resolution on Taxationof International Air Transport which appears in the present document. In adopting the consolidatedResolution, the Council stressed that these policies on taxation would be reviewed and adjusted if at any timethe Organizations present position on environmental charges and taxes State letter AN 1/17.9-97/62 dated11 June 1997 is changed in a way that could have implications for the policy.- - - - - - - - - - - -
vTABLE OF CONTENTSPageINTRODUCTION ..........................................................1COUNCIL RESOLUTION ON TAXATION OF INTERNATIONAL AIR TRANSPORT......3COMMENTARY ON COUNCIL RESOLUTION .....................................6- - - - - - - - - - - -
INTRODUCTION1.It has long been recognized that international air transport creates a number of special or uniqueproblems in the field of taxation. Taxation in the field of international air transport is a complex subject andcovers many aspects, considering the variety of items which may be subject to taxes and the types of taxesthat may be levied. Amongst the items which are usually taxable and have been considered in the past inconnexion with avoidance of multiple taxation are those pertaining to fuels, lubricants and other consumabletechnical supplies used by aircraft during flight, the income derived from operating aircraft, the aircraft itselfand its components, spare parts and ground equipment necessary for its operation. The taxes levied mayinclude income taxes, import, export, excise, sales, consumption or internal duties or taxes. Unlike other typesof enterprises of one State doing business in another State, the earnings of international air transport are basedupon the use of aircraft requiring large amounts of fuel in operations between various tax jurisdictions, anda considerable percentage of these operations is conducted outside any tax jurisdiction, i.e. over the high seas.2.The Chicago Convention on International Civil Aviation of 1944 did not attempt to dealcomprehensively with tax matters. The Convention simply provides cf. Article 24 a that fuel andlubricating oils on board an aircraft of a Contracting State on arrival in the territory of another ContractingState and retained on board on leaving the territory of that State shall be exempt from customs duty,inspection fees or similar national or local duties and charges. The same Article of the Chicago Conventionalso refers to the temporary admittance, free of duty, of aircraft on a flight to, from or across the territory ofanother Contracting State and to the exemption from customs duty, etc., of spare parts, regular equipment andaircraft stores.3.Tax problems connected with aircraft equipment, spare parts, ground equipment and stores have alsobeen pursued on a multilateral basis through the development by the Facilitation Division of InternationalStandards and Recommended Practices for inclusion in Annex 9 to the Chicago Convention, and the Councilin 1951 adopted a Resolution and Recommendation on the taxation of fuel, a Resolution on the taxation ofincome and of aircraft, and a Resolution on taxes related to the sale or use of international air transport cf.Doc 7145 which were further amended and amplified by the policy statements in Doc 8632 published in1966. The Resolutions and Recommendation concerned were designed to recognize the unique nature of civilaviation and the need to accord tax exempt status to certain aspects of the operations of international airtransport. They were adopted because multiple taxation on the aircraft, fuel, technical supplies and the incomeof international air transport, as well as taxes on its sale and use, were considered as major obstacles to furtherdevelopment of international air transport. Non-observance of the principle of reciprocal exemption envisagedin these policies was also seen as risking retaliatory action with adverse repercussions on international airtransport, which plays a major role in the development and expansion of international trade and travel. 4.In 1986, in view of the significant changes which international civil aviation had undergone, the 26thSession of the Assembly expressed concern over certain taxes that were being imposed by some States andconsidered there was a need for new practical measures to reaffirm and strengthen the principles underlyingICAO's policies in this field. Subsequent deliberations finally led to the adoption by Council of revised policystatements which were published in 1994 in the second edition to this document. The revised resolutionswere more responsive to the practicalities of present day governmental requirements yet preserved andenhanced the basic thrust of the previous statements. As indicated in the Foreword the Councils subsequentcomprehensive review of the policies in the 1996 - 1998 triennium resulted in the decision at its 156th Sessionto make no substantive changes but to consolidate the policies into a single resolution.
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Doc 8632. Supplement (2021)Annex 9. Edition 16. FacilitationDoc 9082. Edition 10. ICAO’s Policies on Charges for Airports and Air Navigation ServicesDoc 9082. Edition 9. ICAO’s Policies on Charges for Airports and Air Navigation ServicesDoc 9587. Edition 3. Policy and Guidance Material on the Economic Regulation of International Air TransportDoc 9587. Edition 4. Policy and Guidance Material on the Economic Regulation of International Air TransportDoc 9587. Edition 4. Policy and Guidance Material on the Economic Regulation of International Air TransportDoc 9626. Edition 2. Manual on the Regulation of International Air TransportDoc 9626. Edition 3. Manual on the Regulation of International Air TransportDoc 9626. Edition 3. Manual on the Regulation of International Air TransportDoc 9734. Part 2. Edition 2. Safety Oversight Manual The Establishment and Management of a Regional Safety Oversight OrganizationDoc 9770. Annual Report of the CouncilDoc 9786. Annual Report of the Council - 2001 umentation for the Session of the Assembly in 2004Doc 9790. Assembly Resolutions in Force (as of 5 October 2001)Doc 9814. Annual Report of the Council - 2002 umentation for the Session of the Assembly in 2004Doc 9826. Annual Report of the Council - 2003. Documentation for the Session of the Assembly in 2004Doc 9842. Programme Budget of the Organization 2005-2006-2007Doc 9848. Assembly Resolutions in Force (as of 8 October 2004)Doc 9876. Annual Report of the Council - 2006 umentation for the Session of the Assembly in 2007Doc 9892. Assembly 36th Session Montréal, 18 – 28 September 2007 Executive Committee. ReportDoc 9901. Assembly 36th Session. Montréal, 18 – 28 September 2007. Economic Commission. ReportDoc 9902. Assembly Resolutions in Force (as of 28 September 2007)Doc 9921. Annual Report of the Council - 2009Doc 9957. Edition 1. The Facilitation ManualDoc 9988. Edition 3. Guidance on the Development of States’ Action Plans on CO2 Emissions Reduction ActivitiesDoc 10008. Edition 1. Assembly 37th Session. Montréal, 28 September – 8 October 2010. Economic Commission. ReportDoc 10009. Edition 1. Sixth Worldwide Air Transport Conference: Sustainability of Air Transport. ICAO Headquarters, Montréal, 18–22 March 2013. Economic Development Report.Doc 10022. Assembly Resolutions in Force (as of 4 October 2013)Doc 10027. Edition 1. Assembly 38th Session Montréal. 24 September – 4 October 2013. Economic Commission. ReportDoc 10030. Budget of the Organization 2014 – 2015 – 2016Doc 10074. Edition 1. Budget of the Organization 2017-2018-2019Doc 10075. Edition 1. Assembly Resolutions in Force (as of 6 October 2016)Doc 10078. Edition 1. Assembly 39th Session. Montréal, 27 September – 6 October 2016. Economic Commission. ReportDoc 10139. Edition 1. ASSEMBLY FORTIETH SESSION. Montréal, 24 September – 4 October 2019. ECONOMIC COMMISSION REPORTDoc 10140. Edition 1. Assembly Resolutions in Force (as of 4 October 2019)Doc 10180. Edition 1. Report of the Economic CommissionDoc 10184. Edition 1. Assembly Resolutions in Force (as of 7 October 2022)Circular 93. Development of International Air Passenger Travel - Middle EastCircular 115. The Economic Situation of International Airports - 1970Circular 239. Survey of International Air Transport Fares and Rates (September 1991)Circular 255. Survey of International Air Transport Fares and Rates (September 1993)ВСЕ ДОКУМЕНТЫALL DOCUMENTSDoc 8632
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