Tonnage Tax System | Audit and Advisory Services Malta | Griffiths + Associates

Tonnage Tax System

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.

To obtain the detailed information contact us:

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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