The purchase price is global; the tax bill is local. Import the same US$20 million jet into Hong Kong and the tax cost is zero — import it carelessly into India, Indonesia or China and the bill can approach a third of the aircraft's value. This guide summarises the 2026 picture across Asia's main markets and the structures owners actually use.
The 2026 snapshot
| Market | Import duty | VAT / GST on import | What owners actually do |
|---|---|---|---|
| Hong Kong | None — free port | None | Straightforward imports; B- registry or offshore |
| Singapore | None | 9% GST, zero-rated/suspended for international-use aircraft | 9V- registry or offshore; GST planning via use profile |
| UAE (Dubai) | 5%, avoidable via free zones | 5% VAT, 0% for qualifying international transport | Free-zone import; T7/VP-C/A6 registrations all common |
| India | ~3% BCD + surcharge | 28% IGST private · 5% under NSOP | NSOP (charter permit) import at 5%; offshore rarely viable for resident use |
| Mainland China (Shanghai) | ~1–5% | 13% import VAT (reducible to ~5% above 25 t MTOW) | Leasing-company import structures; many stay B- via HK |
| Indonesia | Low/nil by type | 12% VAT (2025 rate) + luxury-goods tax up to 50% for private use | Offshore registry with temporary admission, or PK- under an AOC (commercial use escapes luxury tax) |
| Thailand | Generally 0% for aircraft | 7% VAT | Direct import or offshore basing; charter via Thai AOC |
| Malaysia | Nil for aircraft | Sales tax generally not applied to qualifying aircraft | Labuan structures popular for regional owners |
| Japan | None | 10% consumption tax | Direct JA- import, or offshore basing for visiting use |
| Philippines | 0–3% | 12% VAT | Offshore registry common; RP- for local commercial ops |
Rates shown are the headline numbers owners plan around in 2026; exemptions, temporary-admission windows and free-trade provisions apply case by case.
Three structures that do the heavy lifting
1. Offshore registry + temporary admission. The aircraft stays on a neutral flag — Cayman (VP-C), Isle of Man (M-), San Marino (T7), Aruba (P4-) — and visits its home market under temporary admission rules without a formal import. It works while the aircraft genuinely travels internationally; it fails when a tax authority decides the jet effectively lives there. Our registration guide compares the flags.
2. Commercial import under an AOC/NSOP. Placing the jet on a local operator's certificate converts "private luxury" into "commercial transport equipment" — cutting IGST from 28% to 5% in India and side-stepping Indonesia's luxury-goods tax — at the cost of charter-grade maintenance oversight and the operator's fees, partly offset by charter revenue when you are not flying.
3. Leasing-company structures. Standard in mainland China: a leasing entity (often in a free-trade zone) imports the aircraft and leases it to the user, spreading VAT and aligning with currency controls.
Sequence matters
Decide the structure before the purchase agreement is signed: the buying entity, delivery location and closing jurisdiction all feed the tax outcome, and re-papering a deal afterwards is expensive. The step-by-step buying guide shows where structuring sits in the timeline, and every location page carries the local summary.
Sources & further reading
- CMS Expert Guide — aircraft finance & leasing by jurisdiction.
- IRAS Singapore — GST treatment of aircraft and international services.
- NBAA — international operations and tax resources.