|Quoting Tavong (Reply 3):|
if i remember correctly, the Brazilian planes are heavily taxed for brazilian airlines to buy them. But i think one of our brazilian a.netters sure can give u more detail .
Correct. They need to use an off-shore company in order to buy them as export (without state and some federal taxes). After that the off-shore (Airline Brazil BVI Corp for example) lease them to the Brazilian Airline.
If a Brazilian Airline acquire them, they need to pay (IIRC) :
State Tax (ICMS): 18% to 25% (depending on the state)
COFINS: 9.25% (Federal)
Federal Tax on Industrialized Product (IPI): 25% (Federal)
Import Tax (on imported items): 20% (Federal)
And all of them in cascade (Aircraft price + II
= Sub-total + IPI = sub-total + COFINS = sub-total + State Tax = Final Price) So... 100 x 20% = 120 x 25% = 150 x 9.25% = 163,87 x 25% = 204,84 (or 104% more)
And by the end... every banking debit transaction pays 0.38% flat to the government