MADAGASCAR Law and Practice Contributed by: Claudy Monja and Sarah Razafindrafito, John W Ffooks & Co
2.3.7 Registration of Aircraft in Alternative Countries The registration of aircraft in alternative countries is not applicable in Madagascar. Aircraft habitually based in Madagascar should be registered on the Aircraft Register. 2.3.8 Requirements for Documents Concerning Registration There is no specific requirement with respect to a document to be accepted and registered. However, a power of attorney should be notarised. 2.4 Lessor’s Liabilities 2.4.1 Tax Requirements for a Foreign Lessor A foreign lessor will not be required to pay any income or capital gains or other taxes upon leasing an aircraft or engine to a domestic lessee. However, any pay - ment of rent made by the lessee to the lessor will be subject to a withholding income tax of 10%. This will be withheld by the paying entity (ie, the lessee). This is why there are tax gross-up clauses in lease agree - ments. 2.4.2 Effects of Leasing on the Residence of a Foreign Lessor A foreign lessor would not be deemed to be resident, domiciled, carrying on business or subject to any tax - es as a result of its being a party to, or its enforcement of, the lease. 2.4.3 Engine Maintenance and Operations In principle, the lessee/operator is liable for the opera - tion and maintenance of an aircraft or engine. It is not possible for the lessor, as owner (but not oper - ator), to be held responsible for the operation of the aircraft unless damage is suffered and can be attrib - uted to an act or default of the lessor/owner, namely, in the case of an accident, drug trafficking, etc. Malagasy law distinguishes between strict liability that may arise for the operator of the aircraft (as lessee/ operator) and any potential fault based on the liability of the lessor or owner arising from the ownership of the aircraft.
ister and will, subsequently, appear on the certificate of registration of that aircraft. 2.3.2 Registration If the Owner Is Different From the Operator In all cases, if the owner is different from the operator, the certificate of registration of the aircraft will clearly identify which person is the owner and which is the operator of the aircraft. 2.3.3 Aircraft/Engine-Specific Registers There is no separate register for leases (aircraft or engines) in Madagascar. Leases are registered with the Aircraft Register. 2.3.4 Registration of Leases With the Domestic Aircraft Registry Leases should be registered on the Aircraft Register and are not subject to any consent from government authorities. The requirements are as follows. • A registration application must contain the follow - ing information: date of the lease, duration of the lease and details of the applicant. The application must be signed by the applicant. • The lease must be annexed to the application. No government applications or consents are required as a prerequisite to the execution and delivery of an aircraft and/or engine lease in relation to an aircraft registered in Madagascar. 2.3.5 Requirements for a Lease to Be Valid and Registrable There is no specific requirement with respect to the form of the lease. The most important part is the sign - ing of the lease by the lessor and the lessee. 2.3.6 Taxes/Duties Payable for Registering a Lease The fee payable for registration is MGA408,000 (approximately USD92). Apart from the registration fee, there are no other taxes (including stamp duties payable for registering the interest of the lessor). In all cases, if the CAA requires any other administra - tive fees (of negligible amount), a receipt is always provided to the applicant.
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