Mandatory threefold tonnage tax for shipping companies in Greece - .PDF file.
In the past, vessels owned by foreign shipping companies and registered under foreign (non-Greek) flags but managed through companies established in Greece used to enjoy tax immunity. However, under article 26 of Law No. 27/1975, which was introduced in January 2013, foreign-flag vessels are now subject to payment of tax equal to the tax imposed on Greek flagged vessels under Law No. 27/1975.
Apart from this new mandatory tax regime for the foreign-flag vessels, an agreement between the Greek government and the Union of Greek Shipowners was reached last July, aiming to financially support the struggling economy.
According to this agreement, non-Greek-flag vessels would be liable to contribute on a voluntary basis over the next three years (2014, 2015 and 2016) an additional sum equal to the amount of the tax due for each Greek-flag vessel under Law No. 27/1975, which means a double tonnage tax for each ship over the next three years. This voluntary contribution is estimated to provide around €140m (£115m) per annum to the Greek economy…
Click on the link below to read the rest of the Stephenson Harwood briefing.