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Thursday, 28.03.2024, 12:32
Lithuania's AviaAM Leasing set to move business management to Cyprus
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.