Commentary

D7.1006 Qualifying conditions—75% limit on chartered in tonnage

Corporate tax
Corporate tax | Commentary

D7.1006 Qualifying conditions—75% limit on chartered in tonnage

Corporate tax | Commentary

D7.1006 Qualifying conditions—75% limit on chartered in tonnage

No more than 75% of a company's or group's qualifying net tonnage can be chartered in. In the case of a group, the 75% limit applies to the aggregate net tonnage of the tonnage tax companies taken as a whole. Bareboat charters do not count as charters in for this purpose, and charters between tonnage tax companies in the same group are ignored. The 75% limit applies on an average basis for any accounting period1.

Example 1

A tonnage tax group consists of companies X and Y. X owns a 1,000 ton ship A and time-charters it out to Y. Y also time-charters in a 2,000 ton ship B from outside the group. The chartered in percentage for the group as a whole is 2,000/3,000 = 67%. Ship A

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