Maltese tonnage tax scheme approved by the European Commission

The EC has conditionally approved under EU State aid rules the Maltese tonnage tax scheme for a period of 10 years. This scheme lays down a level playing field between shipping companies in Malta and those in Europe, while further encouraging ship registration, which will in turn continue to bolster Malta’s shipping registry. Malta has […]

Written By ACT Team

On December 21, 2017
"

Read more

The EC has conditionally approved under EU State aid rules the Maltese tonnage tax scheme for a period of 10 years. This scheme lays down a level playing field between shipping companies in Malta and those in Europe, while further encouraging ship registration, which will in turn continue to bolster Malta’s shipping registry.

Malta has been discussing this scheme and other tax measures with the Commission since October 2011. On 26 July 2012, the European Commission informed Malta that it had decided to initiate the procedure laid down in Article 108(2) of the Treaty on the Functioning of the European Union (“TFEU“) on possible illegal aid measures applied by Malta in favour of shipping companies and their shareholders. The discussions have been difficult and technical, and they stretched out over a number of years.

Malta now has one of the first tonnage tax schemes to be approved by the Commission.  This provides legal certainty that is now being provided to operators in the industry, thus attracting more investors to the shipping industry.

How can we help?  

For further information, please contact one of the firm’s tax partners, Stephen Balzan on [email protected] or Elaine Camilleri [email protected]. ACT can help you understand the changes to the tax rules and how these can impact your business.  

Apart from its offices in St. Julian’s Malta, ACT operates from a second office in Gozo, which is situated in the capital city of Victoria.  For an appointment in our Gozo office, please call on 00356 21378672 or send us an email on [email protected].