Shipping Tax in Malta
Having been servicing clients within the shipping industry for a number of years our experienced staff are able to assist you with ship registration under the Malta flag of your vessel or with the planning and execution of incorporation of shipping companies in Malta.
As stipulated within the Maltese Tonnage Tax regulations, any income originating from shipping activities by licensed shipping organisations is exempt from income tax in Malta. As a result of this beneficial tax position, it makes Malta an ideal jurisdiction to consider setting up a shipping company.
Other beneficial shipping tax factors include:
• Shipping tax exemption on any profits or gains derived from the sale or transfer of a tonnage tax ship.
• Shipping tax exemption on gains arising on the liquidation, disposal or cancellation of any shares in a licensed shipping organisation that owns a tonnage tax ship.
• No tax arising on any interest income in relation to any financing of the operations of licenced shipping operations, or the financing of any tonnage tax ship.
• Beneficial stamp duty regime on registration, sale or transfer of tonnage tax ship.
A Tonnage Tax Ship is either a ship which is declared to be such by the Minister responsible for shipping or a ship or not less than 1,000 net tons which is entirely owned, chartered, managed, administered or operated by a shipping organisation.
A shipping organisation qualifies as such if its principal objects relate to the ownership, operation (under charter or otherwise), administration and management of a ship or ships registered as a Maltese ship (or registered under the flag of another state), and all ancillary financial, security and commercial activities in connection therewith. Furthermore, the holding of shares in such entities, whether Maltese or otherwise, and the raising of capital for such entities are activities which may be carried on by Shipping Organisations.
All registration fees and tonnage tax obligations should be settled to take advantage of the above shipping tax exemptions. Should a shipping management company have two sources of income then they should be clearly segregated showing clearly all payments and receipts in relation to shipping income and all payments and receipts in relation to the other source of income.
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