The European Commission has approved under EU State aid rules a Portuguese tonnage tax scheme. Under this scheme, maritime transport companies will pay taxes on the basis of the net tonnage (i.e. the size of the shipping fleet) operated in maritime transport activities rather than on the basis of their taxable profits. In addition, for certain more environmentally-friendly ships, companies can achieve an additional reduction of 10% to 20% of the tax base under the tonnage tax scheme. Moreover, a seafarer scheme exempts seafarers employed on vessels that are eligible under the tonnage tax scheme from paying personal income tax. It also allows them to pay reduced rates of contribution for social insurance. Both the tonnage tax and seafarer schemes will remain in force for ten years. More information is available here. The proposal of the scheme (Proposta de Lei 111/XIII) may be found here (in Portuguese).
EU: Commission approves Portuguese tonnage tax and seafarer scheme
Filed under International Organizations, State Practice