7735

Authorization procedure and Trade Register aspects for CAEN 7735

For registering at the Trade Register (ONRC) the activity CAEN 7735 – "Rental and leasing activities of air transport equipment", a file is submitted according to Law 265/2022 and GEO 116/2009. The registration application with the trade register includes the mention of CAEN code 7735 as the main or secondary object of activity. Mandatory documents: the certificate of registration, the updated constitutive act, proof of registered office, and the affidavit according to Law 359/2004 regarding the fulfillment of operating conditions. Annex 3 to the sole declaration must be completed accordingly. When determining the main object of activity, the share of turnover from aircraft rental compared to other activities shall be considered. For the registered office, a land registry extract and a loan for use/lease agreement registered with the Tax Authority (ANAF) are required. Also, it is recommended to check in advance the availability of the company name and compatibility with other registered CAEN codes.

Regulatory framework, specific endorsements and control institutions

The activity of rental and leasing of air transport equipment is subject to the rules of the Air Code (Law 21/2020) and subsequent acts issued by the Romanian Civil Aeronautical Authority (AACR). For operations involving commercial flights with passengers or cargo, an air operator certificate (AOC) issued by the AACR is required. The rental of aircraft without crew (dry lease) only requires registration of contracts with the AACR, while wet lease (with crew) requires an air transport license. The National Agency for Fiscal Administration (ANAF) and the Financial Guard verify the legality of financial leasing contracts in light of GEO 51/1997 on leasing operations, which also applies to aircraft leasing. The Labor Inspectorate (ITM) may control if pilots and cabin crew are employed. For aircraft registered in Romania, the rules of the Romanian Aeronautical Registry regarding approval and technical revisions also apply.

Tax management, ANAF audit risk and specific accounting

From a fiscal point of view, income from rental/leasing is classified under the Fiscal Code (Law 227/2015) as income from independent activities (for sole proprietorships) or dividend income (for financial leasing, if opting for dividend tax). Legal entities apply a 16% profit tax, with the possibility to deduct aircraft depreciation, insurance costs, maintenance and periodic revisions. If the aircraft is under operational leasing, the rates are fully deductible as operating expenses. Financial leasing contracts are recorded in accounting according to IAS 17/IFRS 16, with recognition of corresponding assets and liabilities. Major risk of ANAF audit: undervaluation of royalty income due to transfer pricing between affiliated companies (e.g., rental to a foreign subsidiary). Ancillary obligations: completion of the SAF-T declaration (D406) for each leasing invoice, use of the RO e-Factura system for invoices issued between taxable persons, and reporting of beneficial owners in the register of associates. For transactions with non-residents, withholding tax on royalties (16%) applies if the Romanian party is the payer, with the possibility to apply the double taxation treaty. VAT for aircraft rental: exemption with right of deduction (art. 294 par. 1 lit. a) of the Fiscal Code) applies if the aircraft is used for international transport or by NATO forces. Invoicing is made with 0% VAT for rental to EU air operators. Accounting must separately record depreciation, leasing and maintenance expenses. It is recommended to keep supporting documents for at least 10 years, including original contracts, reception annexes and proof of technical revisions.