Performance Analysis of Tonnage Tax Implemented in European Community

• Main Authors: Ching-Nan Ray Tseng, 曾景男
• Other Authors: Chih-Ching Chang
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/90721669433921986597

碩士 === 國立臺灣海洋大學 === 航運管理學系 === 95 === Shipping industry of many countries has been recently threatened by flagging-out of national fleet as ship owners face growing pressure to respond the new competitive climate, especially among European countries. Many European competent authorities are actively working for the improvement measures to solve above mentioned problems. The state approval for this unique flat rate tax linked to tonnage acts as a catalyst to regenerate the shipping industry. Under tonnage tax scheme, shipping companies may elect an alternative tax regime based on the net tonnage of the corporation’s qualifying vessels in lieu of normal net-basis corporate income tax. They may choose to stay in the normal corporation tax system or to elect to apply tonnage tax scheme. Once a company is admitted to the tonnage tax scheme, such election is irreversible for at least 10 years. An election can be renewed for further 10 years upon the expiration of the first ten-year period. This new tax regime would provide a more attractive and enhanced fiscal environment. It could offer certainty and clarity for future investment and ensure the industry’s competitiveness with other countries around the world. This thesis analyzes the major challenges of shipping issues which occurred in European countries. It discusses the reason, objective and effects of the implementation of tonnage tax in European countries. This thesis concludes that the tonnage tax scheme, which focuses a tax reform, can not only help to build up their national fleet. It can also cultivate more experienced seafarers and develop related shore-based industries. Key Words: Shipping Policy, Tonnage Tax