Tonnage tax

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A tonnage tax is a

subsidies by governments in recent decades.[1]

Given that the tax perceived is independent from the volume of material transported and from the operating profit of a shipping company, it is less complex to manage for tax authorities and shipping companies. This method of taxation is based on an internationally recognized variable - net tonnage - by independent certifying bodies that determine the transport capacity of the vessels.

It is estimated that during the period 2005-2019, the global shipping industry as a whole paid taxes corresponding to an effective corporate income tax rate of 7%, compared to the OECD average corporate tax rate of 23.7%. One of the main reasons for the favorable tax treatment was the tonnage tax arrangements of several countries.[2]

The first country to introduce a tonnage tax was

EU countries.[1]

References

  1. ^ a b c OECD/International Transport Forum (2019): Maritime Subsidies: Do They Provide Value for Money? Page 17-18.
  2. S2CID 228914535
    .
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