The Norwegian tonnage tax scheme exempts maritime transport from the usual corporate tax rate. Ship owners will instead pay taxes based on ship weight, resulting in a significant reduced tax rate. The new scheme will be valid from 1 January 2018 until 31 December 2027.
Author: Partner Ulf Sørdal and Senior Lawyer Torgeir Fjeldskaar
The approved scheme has introduced important changes compared to the scheme approved by EEA in the period 2007-2016:
- Bareboat charter was previously accepted without limitations as part of the tonnage tax scheme. Under the revised scheme, the company/group may charter out on bareboat:
- a maximum of 50 percent of total net tonnage of qualifying ships
- a maximum duration of 5 years, with an option of 3 year extension
- only tonnage with its strategic leadership exercised within the EEA (strategic leadership is defined as general management or board of directors level).
- Charter in of qualifying ships on time and voyage charter not registered in an EEA-country is proposed limited to 90 percent of total net tonnage of qualifying ships within the company/group.
- Vessels with no propulsion machinery is not accepted, except if the main activity is traffic on domestic lakes/rivers.
- Windmill farm vessels will be included in the scheme.