Tonnage Tax System
The Tonnage Tax System applies to qualifying ship owners, ship charterers and ship managers of qualifying ships engaged in qualifying activities.
Under the Tonnage Tax System the qualifying ship owners, managers and charterers are exempt from Income Tax on their shipping activities such as:
- Exploitation of a qualifying ship in a qualifying shipping activity or rendering crewing and/or ship management services to any qualifying ship,
- Disposal of a qualifying ship or interest or share in a qualifying ship,
- Disposal of shares in a ship owning company,
- Bank interest earned on working capital or shipping revenue, provided that the said working capital or shipping revenue is used to pay expenses arising to the qualifying person out of the qualifying activity,
- Dividends paid out of profits as described above.
Tonnage Tax Rates
| Units of Net Tonnage | Rate per 100 Units of the Net Tonnage | Rate per 100 Units of the Net Tonnage |
|---|---|---|
| Ship Owners & Charterers | Ship Managers | |
| € | € | |
| 0 – 1.000 | 36.50 | 9.13 |
| 1.001 – 10.000 | 31.03 | 7.76 |
| 10.001 – 25.000 | 20.08 | 5.02 |
| 25.001 – 40.000 | 12.78 | 3.20 |
| In excess of 40.000 | 7.30 | 1.83 |
Tonnage Tax is payable on the 31 March of each year.