Malta Shipping Company Tax Advantages
Maltese Law affords a number of fiscal benefits to ship owners or bareboat charterers operating tonnage tax ships – vessels of at least 1,000 net tonnes registered under the Malta flag and owned, chartered, managed or administered by a Shipping Organisation.
Shipping Companies registered under the Merchant Shipping Act are entitled to the following benefits:
- Automatic exemption from income tax in Malta on income derived from shipping activities of Maltese tonnage tax ships;
- Automatic exemption from donation and succession duty on the capital represented for Maltese tonnage tax ships;
- Automatic exemption from duty on documents and transfers (stamp duties) payable on the sale or transfer of Maltese tonnage tax ships, and on the allotment or transfer of any share or stock in any company owning such vessels;
- Any non-resident officers, masters and crew-members of Maltese tonnage tax ships are exempt from the provisions of the Social Security Act.
Below are some more attractive advantages of registration under the Malta flag:
- Registration of hulls/ vessels under construction and mortgages over such vessel is permitted;
- No restrictions on the nationality of the master, officers and crew serving on Maltese vessels;
- Uncomplicated and efficient procedure for registration and deletion of Maltese vessels, as well as for the registration and discharge of mortgages;
- Efficient procedures for the sale or transfer of shares or stock in Maltese shipping companies;
- No trading restrictions imposed on Maltese registered vessels.