Greek tax changes will hit shipowners

Under the new rules, tonnage tax will have to be paid for ships under any flag, so long as they are managed by companies based in Greece or offshore companies with a branch in Greece.

Michael Kotsapas, a partner with the Moore Stephens shipping team, says, “This new requirement to pay tonnage tax, effective from 1 January, 2013, mirrors that which is already in existence for the Greek-flag merchant fleet. A large part of the Greek fleet currently sails under foreign flags, and therefore is impacted by the new tonnage tax regulations."

"Management companies are jointly liable with shipowning companies to pay the tax. Any foreign tonnage tax paid can be set off. Shipowning companies operating vessels under a foreign flag are exempt from any other taxes on profits derived from the operation of the vessels outside Greece, similar to exemptions available for operating Greek-flagged vessels.” Kotsapas added.

Companies providing services to the shipping sector in Greece are also facing new levies on remittances of foreign currency on a sliding scale from 5% for amounts up to $200,000 down to 3% for those over $400,00. These rules cover shipbrokers, insurance brokers, agents, average adjusters, charterers and others, but exclude shipowners and ship management companies.

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