Pays Air Charter

While the US business community is looking for ways to get back on track, and the state and German governments are looking for more ways to offset their budget deficits, taxation has become more important than ever. Certain charter customers may have queries about the tax charged on the air transport service offered to them.

FET or excise duty is the main way in which aviation taxation is collected from both individual and business aviation companies. The charge due to the authorities is managed either by means of excise duties on motor fuels or by a proportion of the overall costs/payroll. Leisure or other non-commercial flights (FAR Part 91) are subject to duty in the form of cent per gal.

Petrol for air travel (most commonly used in smaller, propeller-driven aircraft) is subject to a 19.4 cent per gal, while petrol for air travel is subject to a higher 21.9 cent per gall. However, this levy is not a problem for most charter enthusiasts, except for those who fly with unlawful, part 91 carriers.

The FET for business transport operations involving aircraft charter (FAR Part 135) is a flat-rate or capitation or both. FET is a fixed rate levied as a proportion of the overall amount payable for air transport. In addition, each local sector is subject to a sector charge and a capitation charge for passenger transport and other specified services.

Commercially operating airline and charter companies also charge a reduction in excise duty of 4.4¢/gallon. Used primarily to finance air field and air traffic control activities throughout the United States, these charges are very important for the US air transport system, but it should be noted that part 121 companies are by far the biggest users of these activities.

Fortunately, the 7.5% percent corporate income levy was kept flat, while the local unit charge (paid for each unit of a route ) rose by 10 cent to $3.80. Recently, Sen Jay Rockefeller (D-W. Va.) and Sen Trent Lott (R-Miss.) passed a law that would abolish all taxes levied on airliners and at the same time increase the aircraft propellant duty from 35 to 35.

Whilst governments such as the Internal Revenue Service (IRS) have become much more interested in their prospective "revenue streams" in recent years, their auditor base has become more aggressively involved in auditing airline and charter operator customers. Those assessors have started to assess FET for a large number of non-commercial flying activities, to include FAR Part 91 operator operated services when the aeroplane is administered by an external manager.

It is also important to note that the IRS and the Federal Aviation Administration (FAA) may have different opinions about what is meant by business and non-commercial use. However, in certain cases, an operational activity considered non-commercial by the FAA may actually be considered commercially by the IRS for FET use. Hopefully we have given you a better idea of the tax you are paying as a Jetcharter user.

It is our belief that commercial aeronautics leads to economical development, higher efficiency and company development throughout the country. Therefore, we would turn against any new law that increases the tax for the FAR Part 135 operator and its clients, who we believe are already contributing their equitable part. If you would like to book a charter for a group or a individual, please call Stratos' Air Charter at (888) 593-9066.

Round-the-clock, our charter agent is available to offer you several offers of personal jets for your on-demand outing.