• 1. Freight tax

Freight tax

Income Tax: 32% of taxable income, which is considered to be 10% of gross outward freight derived from international transport activities of non-residential shipowners  and/or operators (= 3.2%).

Exemption Agreements

Residents of the following countries may benefit from double taxation agreements which reduce or waive the income tax.

Country Reduction Date of entry into force Date of effect
Botswana 100%    
Canada 100% 19/06/2013 01/03/2014
France  100%    
Germany 100%    
India 100% 22/01/1999 01/03/2000
Malaysia 100%   01/03/2005
Mauritius 100%    
Romania  100%   01/01/2000
Russia 100%   01/03/2001
South Africa 1 100% 11/04/1999 01/01/2000
Sweden 100%    
United Kingdom 2 100%   30/06/1963
Signed but not ratified      
Portugal   Signed 12/10/1995 Limited Treaty (Air and Sea)
Seychelles      
In the process of negotiation or finalised but not signed      
Poland      
South Africa (Renegotiated)      
Tunisia      
Zimbabwe      

Notes

  1. Profits ... shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated. If the place of effective management of a shipping enterprise is aboard a ship or boat, then it shall be deemed to be situated in the Contracting State in which the home harbour of the ship or boat is situated, or, if there is no such home harbour, in the Contracting State of which the operator of the ship or boat is a resident. 
  2. The treaty only applies to Great Britain and Northern Ireland and not to the Isle of Man, Channel Islands, nor other British colonies, possessions or territories.

Remarks

The tax must be paid prior to sailing.

There is no income tax levied against the time charter hire and bareboat hire of non-residential shipowners and/or operators.

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