AviaAM Leasing, an aviation holding company engaged in the business of commercial aircraft acquisition, leasing and sales, indirectly owned by Lithuanian businessman Gediminas Ziemelis, plans to move its business management to Cyprus with a more favorable taxation environment, writes LETA/BNS.
On Nov. 29, AviaAM Leasing shareholders will decide on the company’s reorganization through a merger with the Cyprus-registered AviaAM Leasing PLC, according to the company’s statement to the Lithuanian Center of Registers.
Marius Dubnikovas, head of the Tax Commission at the Lithuanian Business Confederation, told BNS Lithuania there might be two reasons for a company’s decision to register in a foreign company, including the wish to be in the same jurisdiction as you business partners, and a more favorable taxation environment.
In his words, countries vie for companies on various aspects and Cyprus is known for its favorable taxation environment.
In late June, Cypriot company Haifo owned 31.67% of AviaAM Leasing, 30.01% belonged to Cyprus-based company ALH Aircraft Leasing Holdings, and another Cypriot company – Mesotania Holdings – controlled 22.67%, with the remaining shares belonging to minority shareholders.
The AviaAM Leasing group earned 26.8 mln euros in net profit last year, up 67% from 2016, but its sales plunged 44.6% to 44.8 mln euros.
The group has companies in Ireland, Lithuania, Cyprus and China.