The procedure for terminating a lease is governed by the terms agreed between the parties to such a lease agreement. A wet leasing is a lease agreement whereby an airline (renter) provides an aircraft, a full crew, maintenance and insurance (ACMI) to another airline (leasing) that pays in hours worked. The tenant provides fuel, covers airport taxes and all other taxes, taxes, etc. The flight uses the tenant`s flight number. Wet leasing is usually used during peak hours or during annual and heavy maintenance checks or to launch new routes. An aircraft for hire by water can be used to fly services to countries where the taker is excluded from the operation. 2.2.1 The contracting parties state that this agreement constitutes a genuine lease agreement that is not intended to be considered a guarantee. Tariffs apply only to the importation of an aircraft into Ireland from outside the EU or to the release of an aircraft in Ireland in circumstances in which the aircraft withdraws from an active transit or development regime. There are no binding conditions that Irish law must include in such an agreement/agreement. Once implemented, the rule is particularly relevant for debt-financed leasing companies in Ireland, which have significant annual interest charges.

However, the way Ireland will apply the rule has yet to be confirmed. Ireland should use a variety of ATAD options, which could limit its scope and exclude many joint financing transactions. Yes, for example. B taxable income is made up entirely of interest income or income equivalent to interest income (for example. B income from a lease-financing), there should be no surplus, so the rule should not apply. It is therefore unlikely that SPVs that enter into financing leases will be affected by the regulations. While it is possible that the revenues from an operational lease may also be considered economically equivalent to interest collected, this situation is not clear at this time, pending an application bill. The sale of the interest in a company owning an aircraft or engine is effectively recognized as the sale of that aircraft or engine itself, to the extent that the company to which the interest is transferred owns the aircraft or engine. A foreign lender may not be considered a resident, resident or taxable, since he is a party to the lease or if he does so by force, unless he is established elsewhere in Ireland or has no stable establishment or other taxable entity in Ireland or, if the lessor is established in Ireland, does not act through a branch or agency in Ireland or another taxable presence.