Tonnage Tax System Malta 2021 | Griffiths + Associates

Tonnage Tax Malta

Maltese law requires the payment of an annual tonnage tax by all Malta-registered vessels. Upon payment of such tonnage tax, the annual certificate of registration is issued for the vessel in question and valid for a full year therefrom.

Our firm can assist in dealing with Transport Malta and handling the calculation and payment of any such tonnage tax, together with filing the necessary documents to keep any Malta-registered vessel in good standing, including commercially registered vessels.

Shipping operations for the corporate entities established in Malta are subject to the annual tax, which consists from registration fees and annual tonnage tax.

The rate of the tonnage tax depends on the age of the ship and is being reduced respectively.

For that reason all vessels are divided into two categories:

 Non – tonnage tax ships:

  •  small pleasure yachts less than 24 metres length;
  •  commercial yachts more than 24 metres in length and less than 500 gross tonnes.

 Tonnage tax ships – ships of more than 24 metres in length and 500 gross tonnes and over.

Those charges are being reduced for the ships from 0 to 5 and from 5 to 10 year age categories respectively. Charges are subject to increase for age from 15 to 30 year and over.

Taxation System for shipping activity.

Shipping companies, which are incorporated to operate in Malta, are exempt from income tax.

To apply for this scheme the shipping company has to be registered in the Malta Business Registry including the name and tonnage of the vessel to be owned or operating.

The requirement is the vessel has to be declared as Tonnage Tax ship to be owned, managed, operated, chartered etc. by the establishing shipping organization.

The minimum tonnage for those vessels is 1,000 gross tonnes.

Changes in 2018 to the taxation of shipping activities has extended to commercial chartering the tonnage tax exemption and has also to, within certain parameters, entities registered within the European Union that fly a Maltese flag and are carrying out commercial activities.

Registration fees paid to Malta Transport:

Registration fees/Tonnage tax (see Schedule of fees below) – is being paid one time, when register a ship, and then annually to get certificate extended.

Schedule of Fees

Information from the web page of Malta Transport:

https://www.transport.gov.mt/Registration-Fees-and-Tonnage-Tax.pdf-f2829

Registration fees and tonnage tax.

Ai. The fee on registration and the annual fee for non-tonnage tax ships.

The fee on registration and the annual fee for non-tonnage tax ships malta

Aii. The fee on registration and the annual fee for tonnage tax ships.

The fee on registration and the annual fee for tonnage tax ships malta

Subject to the provisions of article 7(4) of this Act, when there is a change in the particulars or category of a registered ship and the new applicable fee or tonnage tax payable on registration or annually is higher than that already payable, the provisions of article 19(7) of this Act in respect of laid up vessels shall mutatis mutandis apply.

B. The rates per net tonnage payable on registration, annual register fee and annual tonnage tax when referred to in paragraph A.i and A.ii.

The rates per net tonnage payable on registration, annual register fee and annual tonnage tax

C. Reduction or increase on the rates per net tonnage on registration, register fee and tonnage tax, when referred to in paragraph A.i or A.ii.

Reduction or increase on the rates per net tonnage on registration, register fee and tonnage tax Malta

Annual fees for any one year paid after the anniversary of registration for that year shall be increased by ten per cent. Pre-registration inspections are subject to a charge provided for in Merchant Shipping Notice 127 Rev 1.
The unit of currency is the Euro.

Get Support From Our Specialised Professionals:

Liudmyla Skryvanek - Maritime Connections Worldwide Expert
Liudmyla Skryvanek - Maritime Connections Worldwide Expert

We provide full array of maritime services:

  • Advisory services to individuals and legal entities who wish to register yachts under the Malta Flag.
  • Services on the adoption of efficient tax structures at maximising the particular needs of the yacht owner.
  • We may act as a resident agent for the registration of a company in Malta to act as owner of the yacht and liaise with certified surveyors as well as the shipping Directorate of Transport Malta in order to have the provisional / permanent registration.

    Our company’s mission – to provide quality financial services to our esteemed local and international clients, keeping their needs at the centre of our ethos; going the extra mile to efficiently and effectively assist them in growing and fulfilling their business and personal needs.

    Peter Griffiths – Managing and Tax Director
    Peter Griffiths
    Managing and Tax Director, Griffiths + Associates
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