Switzerland-headquartered digital financial management company MySky has launched MySky Tax software designed to automate tax reporting for corporate aircraft use in the US.

Unlike other digital tax solutions in business aviation, MySky Tax can be integrated with a customer's flight operations software, allowing it to use flight expense data before it is invoiced to automatically file taxes according to business and personal use of a corporate-owned aircraft. For customers, this means tax reporting can now be faster, less labour-intensive and highly accurate.

Head of aviation tax and vice chair of the NBAA Tax Committee Ryan DeMoor says: “This is such an important resource for the US market. For too long, aviation tax has been limited by the arduous task of manual data entry, which is subject to clerical errors and slower processing times. Now, with MySky Tax, we have the opportunity to make people's lives easier by giving them the means to report their company's aircraft use faster and much more accurately.”

Each tax statement in MySky Tax is entity-based, allowing customers to file for multiple corporate entities under one umbrella. MySky Tax also makes it easy to understand every step of the tax reporting process with explanatory captions defining each tax category and where it is cited in the relevant tax code. This gives corporate flight departments the knowledge and accuracy to confidently report their company's aircraft use themselves. For seasoned tax practitioners in the industry, MySky Tax serves as a tool for greater efficiency to take on more business.

The software is constantly updated to account for any changes in tax code or tax rates and helps to guarantee historical accuracy for more technical reporting such as determining control employee status required for Standard Industry FARE Level (SIFL) statements. MySky Tax is also the only aviation tax software able to automate tax calculations of 'mixed-use' trips for reporting SIFL groupings. Using a map view of their flight, customers can classify each leg of the trip as either 'primarily business' or 'primarily personal', allowing MySky Tax to produce a clearly defined, itemised calculation of taxes owed.

Head of Americas Jean de Looz adds: “Incorporating MySky Tax into our portfolio of financial tools is a very natural step for us. To automate tax reporting, users need expense and flight operations data. MySky has the largest database of global private aviation costs in the industry and we are fortunate to have an expanding network of flight operations software integration partners. Having this existing exchange of data gives us the opportunity to lead the industry toward what has been a long-held vision of smoother corporate tax reporting.”

MySky will begin customer onboarding for MySky Tax using existing flight operations integrations. For customers whose flight operations are not yet integrated with MySky's software, the company will assist with any necessary data inputs required to get started.

MySky Tax currently provides services for SIFL and disallowance reporting and will soon offer Securities and Exchange Commission (SEC) and timeshare reporting in the first quarter of 2023.