• 1. Freight tax

Freight tax

Corporation tax: 28% of taxable income (2018 rate is 29%), which is considered to be 15% of gross outward freight earnings derived from international transport activities of non-resident shipowners and/or operators (=4.2%).

Exemption Agreements

Residents of the following countries may benefit from double taxation agreements which reduce or waive the corporate income tax, unless otherwise indicated. 

Double taxation agreements
Country Reduction Date of entry into force Effective Date
Albania 1 100%   01/01/2001
Armenia 1 100% 18/07/2002 01/01/2003
Austria (Renegotiated) 1 100% 01/04/2009 01/01/2010
Azerbaijan 2, 3 100%   01/01/2011
Belgium 1 100%   01/01/2005
Bulgaria 1 100%   01/01/2002
Canada 4 See Note 16/12/2010 01/01/2011
China 2, 5, 6 100% 01/11/2005 01/01/2006
Croatia 1 100% 18/12/1998 01/01/1999
Cyprus 7 100% 16/01/1967 01/01/1967
Czech Republic 1, 8 100% 23/05/1989 01/01/1990
Denmark 7, 9 100%   01/01/1992
Estonia 5, 9 100% 01/08/2008 01/01/2009
Finland 1 100%   01/01/1982
France 1 100% 31/01/1965 31/01/1965
Georgia 5 100% 20/10/2002 01/01/2003
Germany 10 100% 08/12/1967 01/01/1964
Hungary 1 100%   01/01/1986
Iceland 11, 12 100%   01/01/2009
India 13 50%   01/01/1964
Ireland 1, 9 100%   01/01/2005
Israel 14, 15 100% 06/03/1998 01/01/1999
Italy 9,18 100%   01/01/1984
Korea, Republic of 9, 14 100% 10/07/1998 01/01/1999
Kuwait 1 100%   01/01/2006
Latvia 2, 3 100% 07/03/2005 01/01/2006
Lithuania 2, 3 100%   01/01/2006
Luxembourg 1 100%   01/01/1999
Malta 1, 9 100% 30/08/2008 01/01/2009
Mexico 1 100%   01/01/2006
Moldova 1 100%   01/01/2006
 Morocco 100% 17/11/2010 01/01/2011
Netherlands 5 100%   01/01/1981
Norway 1 100% 16/09/1991 01/01/1992
Poland 5 100% 28/09/1991 01/01/1992
Portugal 2, 7 100%   01/01/2003
Qatar 100% 21/03/2010 01/01/2011
Romania 1 100%   01/01/1996
Russia 1, 2 100% 30/12/2007 01/01/2008
San Marino 07/04/2014 01/01/2015
Saudi Arabia 1 100%   01/01/2011
Serbia 11, 16 100%   01/01/2011
Slovakia 1, 8 100% 23/05/1989 01/01/1990
Slovenia 1 100%   01/01/2004
South Africa 1 100% 14/02/2003 01/01/2004
Spain 1, 9 100%  21/08/2002 01/01/2003
Sweden 17 100%   01/01/1964
Switzerland 7, 9 100%   01/01/1983
Turkey 3 100% 05/03/2004 01/01/2005
Ukraine 1, 2 100% 26/09/2003 01/01/2004
United Arab Emirates  100%  16/12/2013 01/01/2014
United Kingdom 18 100%   01/03/1951
United States 7 100% 30/12/1953 01/01/1953
Uzbekistan 1 100%   01/01/1999
Limited Treaties (Air and/or Sea)
Argentina Sea transportation only    
Australia Air transportation only    
China 6 Sea transportation only    
Egypt Sea transportation only    
Estonia Sea transportation only    
Ethiopia Air and Sea transportation    
Georgia Sea transportation only    
Jordan Sea transportation only    
Lebanon Air and Sea transportation    
Morocco Air and Sea transportation    
Netherlands Air and Sea transportation    
Pakistan Air and Sea transportation Terminated 01/01/2014
Poland Air and Sea transportation    
Syria Air and Sea transportation    
Double taxation agreements which are signed but not ratified
Tunisia Signed 31/10/2002    

Notes

  1. These treaties provide that profits derived from the operation of ships engaged in international traffic shall be taxable only in the Contracting State in which the ships are registered or by which they are  documented.
  2. These treaties provide that profits derived by an enterprise of a Contracting State from the operation of a ship in international traffic shall be taxable only in that Contracting State.
  3. These treaties provide that profits derived from the operation of ships engaged in international traffic shall be taxable only in the Contracting State in which the ships are registered.
  4. The treaty provides that profits derived from the operation of ships in international traffic shall be taxable only in the Contracting State in which the ships are registered or by which they are documented. Notwithstanding this provision profits derived by an enterprise of a Contracting State from the operation of ships engaged in international traffic may also be taxed in that State.

    This treaty replaces the former agreement between Greece and Canada in the form of an Exchange of Notes (30/09/1929) providing for freight tax exemption for shipping income deriving from ships owned or operated by residents of the respective countries.
  5. Provisions of limited transportation treaty apply.
  6. This treaty does not apply to residents of Hong Kong, SAR; Macau, SAR or the province of Taiwan.
  7. These treaties provide that income derived from the operation of a ship in international traffic shall be taxable only in the Contracting State in which the ship is registered or documented.
  8. Covered under the former Czechoslovakian agreement
  9. These treaties provide that income derived by an enterprise of a Contracting State from the operation of ships in international traffic shall be taxable only in that Contracting State.
  10. Profits from the operation of ships in international traffic accruing to a resident of the Federal Republic of Germany from an enterprise which is managed and controlled in the Federal Republic of Germany shall be taxable only in that State.
  11. The treaty provides that profits from the operation of ships in international traffic shall be taxable only in the Contracting Country in which the place of effective management of the enterprise is situated.
  12. If the place of effective management of a shipping enterprise is aboard a ship, then it shall be deemed to be situated in the Contracting Country in which the home harbour of the ship is situated, or, if there is no such home harbour, in the Contracting Country of which the operator of the ship is a resident.
  13. When a resident of India, operating ships, derives profits from Greece, through such operations carried on in Greece, such profits may be taxed in Greece as well as in India; but the tax so charged in Greece shall be reduced by an amount equal to 50 per cent thereof and the reduced amount of Greek tax payable shall be allowed as a credit against Indian tax charged in respect of such income. The credit aforesaid shall not exceed the Indian tax charged in respect of such income.
  14. These treaties provide that income derived from the operation of a ship in international traffic shall be taxable only in the Contracting State in which the ship is registered.
  15. The treaty provides that  income from the operation of a ship in international traffic shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.
  16. The treaty provides that profits derived from the operation of ships engaged in international traffic shall be taxable only in the Contracting State in which the ships are registered or by which they are documented, under the condition that national of that State has a participation in the ownership of the ships in accordance with the legislation of that State.
  17. The treaty provides that  income derived from the operation in international traffic of ships registered in one of the Contracting States shall be exempt from tax in the other Contracting State, unless the enterprise is a resident of that other State; in such event the income may be taxed in the last-mentioned State.
  18. The treaty provides that profits which a resident of the United Kingdom derives from operating ships whose port of registry is in the United Kingdom shall be exempt from Greek tax.

 

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