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Shipping

As from 24th March 2010, the Tonnage Tax System (TTS) was introduced with the Merchant Shipping (Fees & Taxing Provisions) Law 44(I) of 2010 with effect as from 1 January 2010. This was approved by the European Commission in accordance with the relevant guidelines on State Aid to Maritime Transport. This simplified TTS was approved for the first time for an EU Member State.

The new TTS covers Maritime Transport activities offered in international shipping, namely Ship-owning, Ship-management (including Crew Management and/or Technical Management) and Chartering.

                                             Description             Tax rate
  • Profits of a qualifying ship owner from shipping operations
  • Dividends paid directly or indirectly from such profits
  • Profits on the sale of the ship
  • Interest earned on funds used as working capital or for the financing, operation and / or maintenance of the ship
Exempt from corporation tax and subject to Net Tonnage Tax
  • Profits of a qualifying charterer from shipping operations
  • Dividends paid directly or indirectly from such profits
  • Interest earned on funds used as working capital or for the payment of expenses arising out of the charter party
Exempt from corporation tax and subject to Net Tonnage Tax
  • Profits of a qualifying ship manager from the provision of crew/or technical ship management services
  • Dividends paid directly or indirectly from such profits
  • Interest earned on funds used as working capital or for the payment of expenses relating to the management of the ship
Exempt from corporation tax and subject to Net Tonnage Tax
Profits on operations or charterer of non-qualifying ship operations                                10%