Tax Procedures for Aviation Fuel
With the sharp increase in air traffic volume and the rapid progress of aircraft speeding up and upsizing, the aviation fuel tax has been increasing due to the expansion of airport maintenance, noise control of aircraft, safety of air transport by expansion of security facilities and control facilities In light of the urgency of securing, etc., it was established for the purpose of procuring its resources (book).
From 1954, when civil aviation was launched, from the standpoint of promoting the protection and development of civil aviation projects,the voluntary oil tax and local road tax for volatile oil as an aircraft fuel are converted every three years of the same law by the Tax Special Measures Law.
However, due to the creation of the aircraft fuel tax, the tax exemption provision for aircraft fuel (Article 3, 16-4 of the same Act 16) was established in the Volatile Tax Law, and the volatile oil tax and Permanent exemption from local road tax.
The taxable property of aircraft fuel tax is aircraft fuel. Law 3
Aircraft fuel is a hydrocarbon oil used for aircraft fuel.
Currently there are aviation gasoline (gasoline type) and jet fuel (kerosene type). These are taxable properties because they are both aircraft fuel.
For maintenance or commissioning of the engine removed from the aircraft, the hydrocarbon oil consumed as its fuel is also taxable as aircraft fuel (Law 5).
Whether or not it corresponds to an aircraft shall be in accordance with the handling of “Aircraft” (Airline Law Article 2) of the Aeronautical Act (Act No. 231 of 1947),and if it is difficult to judge, it shall be promoted to the NTA (Circular 2-1).
The engine of Law 5, that is, “a motor removed from an aircraft or a motor manufactured or purchased newly for attachment to an aircraft” is one removed again on the premise of being attached to the aircraft, Since it is manufactured or purchased on the premise that it is attached to an aircraft,even if it has the same standard and structure as that of the aircraft engine, it is not limited to aircraft (hovercraft, hydrofoil boat, power generation Equipment, etc.),those intended for research, development, prototyping, etc. of aircraft’s aircraft, those not attached to aircraft are not applicable to aircraft motors (Circular 4-1) .
As for the aircraft fuel to be a taxable property, since certain property standards are not provided in the article, it is applicable to aircraft fuel as a taxable property of aircraft fuel tax as it is used for aircraft fuel Do Those called “Methanol Mixture”, “Water Methanol”, etc. loaded on aircraft are a mixture of water and alcohol and are not applicable to hydrocarbon oil (Circular 2-7),so they are taxed instead of aircraft fuel It is not subject to.
Establishment of tax Obligation
The formation of tax liability for aircraft fuel tax is when loading aircraft fuel on aircraft. National Tax Code General Law 15 2 7
With regard to aircraft fuel that is consumed as fuel for servicing or commissioning of a motor, tax consumption obligation is established at the time of consumption (Law 5) that consumption is regarded as loading of aircraft fuel into an aircraft ( Notice 3-11).
In the case of foreign-borne vehicles or the like, when it is no longer a foreign-born car, etc., it is deemed to have been loaded at the place (see Law 7).
When an aircraft that is not a foreign-borne aircraft or the like becomes a foreign-borne traffic aircraft, it is deemed that the aircraft was unloaded (refer to Law 13) and the aircraft fuel tax is deducted or refunded.
The auctioneer of the aircraft fuel tax is, in principle, the owner of the aircraft. However, if a person other than the owner uses it as an aeronautical user, that user. Act 4
In determining the “owner of the aircraft”, in principle, for the aircraft registered in the aircraft registration register prescribed in Article 3 “Registration” of the Aeronautics Act, the owner registered in the aircraft registration register as a ” Owners of “(Circular 3-1).
However, if the fact that the aircraft is a user other than the owner is obvious by rental agreement, lease agreement etc., the user becomes a taxpayer (Law 4 1).
Regarding the maintenance or trial operation of the aircraft, if a person other than the owner or user of the aircraft carries out maintenance or trial operation of aircraft fuel loaded on the aircraft by a person performing maintenance or commissioning Those who become taxpayers (Law 4 4)
Regarding the maintenance or trial operation of the engine, those who perform maintenance or commissioning are taxpayers for aircraft fuel consumed as fuel for the engine (Act 5).
Person who carries out maintenance or commissioning is not a worker who is a labor provider, but a company owner, user or the like who carries out maintenance or trial operation of another person’s aircraft at self-responsibility (Circular 3-8, 9),maintenance Whether it is the company or the airline’s responsibility to load or consume fuel is split.
There are no obligations for taxation of aircraft fuel tax on national and local governments (Law 6). Therefore, although procedures such as declarations prescribed in the same law are not required, procedures such as notification such as notification of aviation gasoline etc based on tax exemption provision of volatile oil for aircraft fuel as stipulated in Article 16-3, 4 of the Volatile Tax Law are required (Circular 5-1).
Aircraft fuel loaded on foreign carriers not co-ordinated for paid domestic transportation, and aircraft fuel taxed with volatile oil tax and local road tax are not taxed with aircraft fuel tax. Law 8
With regard to aircraft fuel that is loaded on a foreign-borne aircraft not approved for customs duty by the Director-General of Customs or notified and not submitted for domestic transportation for payment, pursuant to the provisions of Article 1 or 2 of the Customs Law, Fuel tax is not taxed.
This is applicable to aircraft fuels that are loaded on aircraft entering into so-called international flights.
Also, in cases where volatile oil taxes and local road taxes are imposed or imposed by the documents possessed by taxpayers, etc., the aircraft fuel tax is not taxed for aircraft fuel. This was established from the viewpoint of preventing double taxation (book).
Place of Tax Payment
In principle, the taxable land of the aircraft fuel tax is the place of aircraft fuel loading (in the case of unloading, the place of unloading). Law 9
This means that for volatile oils (such as aviation gasoline) that have been exempt from volatile oil tax as volatile oil under the Voluntary Tax Law, it will be consistent with the place of entry under the Volatile Tax Law.
Also, it is recognized that loading of aircraft fuel is carried out at places where taxpayers do not have offices or permanent staff, and matters concerning the loading of aircraft fuel are often managed at the headquarters, etc.
Also in such a case Since it is not appropriate from the viewpoint of administrative procedures etc. to place the tax payment site as a loading place of aircraft fuel, in such a case, approval of the Commissioner of the National Tax Agency for the place where it is deemed appropriate to be tax payable Receiving and receiving the approval can be set as the tax payment place (Law 9, Order 4) This approval is called approval of the special tax payment area (Circular 7-1).
Aircraft fuel tax taxation standard is the loading quantity of aircraft fuel loaded on aircraft. Act 10
In principle, the measurement of the loading quantity is based on the quantity converted into ordinary temperature (temperature of 15 degrees),but in the case where the actual quantity of transaction depends on the apparent quantity, it can be based on that quantity Notice 8-4). – If it is based on weight, it is based on the specific weight converted into capacity (Circular 8-2).
For loading quantity, for gallons or barrels, convert to 3.7854 liters for 1 rice gallon and 158.99 liters for 1 barrel (Notice 8) (revised in 1996).
The fraction calculation of the load quantity is rounded down to the 1st place below the L position and rounded down to the 2nd place and less than the L position, but it does not prevent even if it is constantly being held at the L position when weighing in the L position unit (Circular 8 -Four). When converting loading quantity, you can either convert it each time, convert it by one month, either way (book).
In the case of engine maintenance or trial operation, it is consumption of aircraft fuel consumed as fuel for maintenance or commissioning.
The tax rate of aircraft fuel tax is 18,000 yen per 1 KL. Act 11
Tax Return and Payment
The auctioneer of the aircraft fuel tax must submit a declaration stating the quantity, tax amount, etc. of aircraft fuel loaded on the aircraft every month during the month by the end of the next month and pay the tax amount Hmm. Act 14
The auctioneer of the aircraft fuel tax shall pay the load quantity (amount consumed in the case of maintenance or commissioning of the engine) for each aircraft fuel loaded on the aircraft every month during the month, and the total quantity , The “aircraft fuel tax return form” stating the aircraft fuel tax amount for this, the aircraft fuel tax amount to be applied when it takes in / off, etc., to the taxpayer by the end of the following month You must submit it to the Director of the Tax Office.
If the tax return is submitted after the deadline, it will be unable to receive deduction or refund of aircraft fuel tax due to the provisions of Article 12 of the Act (deduction of aircraft fuel tax etc. in the case of unloading) (Circular 11 -Four).
Also, within the deadline for filing the tax returns, you must pay the aircraft fuel tax equivalent to the amount of taxes to be paid in the tax return.
A taxpayer of aircraft fuel taxes must record the facts concerning loading and unloading of aircraft fuel to and from the aircraft on the books. Law 17, Enforcement Order for Aircraft Fuel Tax Law 9
The following four items should be mentioned.
- The quantity of aircraft fuel that was loaded on the aircraft (consumed for maintenance or commissioning of the engine),the date of loading and the location and name of the loading location.
- The quantity of aircraft fuel that was transferred, the date of assignment and the address and name or name of the assignor.
- The quantity of aircraft fuel that was taken from the aircraft, the date of unloading, the location and name of the location of the unloading.
- The quantity of the transferred aircraft fuel, the date of transfer and the address and name or name of the transferee.
- Komano Toshiyuki “Practical Business of Vessel Tax, Aircraft Fuel Tax, Oil Tax” May 27, Showa 54 Law and Publishing Co., Ltd.
- Distribution brochure of the National Tax Service “Part 68 of the 68th National Assembly Tax Special Measures Law Draft Legal New-Old and Old Table” February 1972.
- Distribution brochure of the National Tax Agency “The aircraft fuel tax summary” April 1972.