• 1. Freight tax

Freight tax

Income tax: 25% of taxable income (profit), which is considered to be 5% of outward gross freight and passage money (= 1.25%)

Exemption Agreements

Residents of the following countries may benefit from double taxation agreements which grant full or partial exemption from income tax on international transportation.

Country   Reduction   Date of entry into force Date of effect
India 1 100%   01/04/2010
Korea, Republic of   50% 04/08/2003 01/04/2004
Laos 100%   01/01/2011
Malaysia 50%   01/04/2009
Singapore   50% 26/06/2009 01/04/2010
Thailand 50% 15/08/2011 01/04/2012
Vietnam   100%   12/08/2003 01/04/2004
Comprehensive treaty negotiations currently in progress:
Signed but not ratified
Bangladesh Signed 07/10/2008    
Finalised but not signed
Indonesia      
In the process of negotiation
Philippines      

Notes

  1. 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 State in which the home harbour of the ship is situated, or, if there is no such home harbour, in the Contracting State of which the operator of the ship is a resident.

Remarks

A non-resident owner or charterer of a ship shall, before berthing, pay income tax in respect of the profit and the gains derived from the carriage of passengers, livestock or goods at that port.

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