FLY Leasing Limited (FLY Leasing) is a tax resident in Ireland. Accordingly, dividends that FLY Leasing pays may be subject to an Irish dividend withholding tax. It is expected that United States (U.S.) shareholders will receive dividends that FLY Leasing pays free of the dividend withholding tax.
Shareholders may receive an exemption to the dividend withholding tax provided that they supply the necessary documentation. This service is automatically provided for most U.S. shareholders by Globe Tax for a customary fee of $0.005 per share.
PFIC Information Statements
Shareholders may also be subject to tax upon the disposition of their American Depositary Shares (ADS), depending upon their jurisdiction. All FLY shares are ADS listed on the NYSE. For U.S. federal income tax purposes, FLY Leasing has been treated as a passive foreign investment company (PFIC) and expects to be treated as a PFIC for the forseeable future. Under PFIC rules, a U.S. holder is subject to different taxation rules, depending upon elections that they make. The PFIC rules are complex and investors should consult with their own tax advisors for more specific information and advice.
The following links to some Questions and Answers (Q&A) are being provided to address some general questions. Please note that the responses in the attached Q&A are intended for broad discussion purposes only, and are not intended to constitute tax advice or recommendation to take any particular tax position. You should consult your tax advisor prior to and after investing in FLY Leasing ADS regarding all Irish, U.S. federal, U.S. state, U.S. local, Bermuda and other country income and other tax consequences of an investment in FLY Leasing, with specific reference to your own particular tax situation and recent changes in applicable tax law.
Pages 159 to 167 of the prospectus covering the initial sale of FLY Leasing ADS and included in a Registration Statement filed on Form 424B4 (Registration Statement No. 333-145994) with the Securities and Exchange Commission on September 27, 2007 contains further discussion of the tax considerations of holding an ownership interest in FLY Leasing. You may access that registration statement on the SEC filing page of our website. At the time of that filing, FLY Leasing’s name was Babcock & Brown Air Limited.
FLY Leasing takes no responsibility for updating the information contained in the prospectus referred to above or the information included on this website, nor does FLY Leasing take responsibility for the accuracy of the information as it applies to your individual tax situation. Investors should consult their tax advisors for more specific information and advice.
TO ENSURE COMPLIANCE WITH TREASURY DEPARTMENT CIRCULAR 230, YOU ARE HEREBY NOTIFIED THAT: (A) ANY U.S. FEDERAL TAX ADVICE CONTAINED HEREIN IS NOT INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED BY ANY TAXPAYER FOR THE PURPOSE OF AVOIDING PENALTIES THAT MAY BE IMPOSED UNDER THE INTERNAL REVENUE CODE; (B) THE ADVICE IS WRITTEN IN CONNECTION WITH THE PROMOTION OR MARKETING (WITHIN THE MEANING OF CIRCULAR 230) BY B&B AIR OF THE TRANSACTIONS OR MATTERS ADDRESSED HEREIN, AND (C) THE TAXPAYER SHOULD SEEK ADVICE BASED ON THE TAXPAYER’S PARTICULAR CIRCUMSTANCES FROM AN INDEPENDENT TAX ADVISOR.