Shipping Organisations) Regulations, 2004

Suppliment tal-Gazzetta tal-Gvern ta’ Malta, Nru. 17,574, 30 ta’ April, 2004

L.N. 224 of 2004

MERCHANT SHIPPING ACT

(CAP. 234)

Merchant Shipping (Taxation And Other Matters Relating To

Shipping Organisations) Regulations, 2004

IN exercise of the powers conferred by articles 84Z(9) and 374

of the Merchant Shipping Act, the Minister for Competitiveness and

Communications with the concurrence of the Prime Minister and Minster

of Finance has made the following regulations>–

(1) These regulations may be cited as the Merchant Shipping Title,

(Taxation And Other Matters Relating To Shipping Organisations) commencement

scope.

Regulations, 2004.

(2) These regulations shall enter into force on the 1st May,

2004>

Provided that for the purposes of licensed shipping

organisations carrying out activities other than the ownership or

chartering of a tonnage tax ship, these regulations shall enter into force

on such date as the Minister responsible for shipping may prescribe.

(3) The purpose of these regulations is to provide for the

taxation and certain other matters relating to shipping organisations.

Regulation 4(4)

Declaration In Lieu of Tax Return In Respect of a Licensed Shipping Organisation

Name of Licensed Shipping Organisation

Name of Ship

Official Number

Declaration made by

Year of assessment

(1)

I the undersigned do solemnly declare that I have ascertained to the best of my

ability that the above mentioned licensed shipping organisation is the

owner#operator#manager#administrator (1) of the above mentioned ship which is a

tonnage tax ship under the provisions of the Merchant Shipping (Taxation And Other

Matters Relating To Shipping Organisations) Regulations, 2004, and that the objects

of the licensed shipping organisation limit its operations to shipping activities as listed

in article 84Z (1) of the Merchant Shipping Act, and that the licensed shipping

organisation qualifies for the concessions granted by the said regulations for the period

commencing _______________ and ending_______________ and that the relative

registration fees and tonnage taxes as applicable for this period have been paid.

(1) (2)

I the undersigned solemnly declare that the above mentioned licensed shipping

organisation is not yet#no longer (1) an owner#operator#manager#administrator (1) of a

tonnage tax ship pursuant to the Merchant Shipping (Taxation And Other Matters

Relating To Shipping Organisations) Regulations, 2004 but the objects of the licensed

shipping organisation limit its operations to the shipping activities mentioned in article

84Z(1) of the Merchant Shipping Act, and the licensed shipping organisation qualifies

for the concessions granted by the said regulations for the period commencing

_______________ and ending_______________ and that the relative registration fees

and tonnage taxes for this period have been paid.

(1)

I also declare that I have ascertained to the best of my ability that the licensed

shipping organisation has not engaged in any business other than the ownership and,

or, operation and, or, management and, or, administration of tonnage tax ships and

that during any period not covered by the above mentioned dates the licensed shipping

organisation has not traded and has not had any income which would not be exempted

under the said regulations.

(1)

I also declare that the licensed shipping organisation has other objects which

are not shipping activities as contemplated by article 84Z(1) of the Merchant Shipping

Act, apart from the shipping activities so contemplated. I understand that the concessions

applicable under the Act and the regulations do not apply in this case and that a full tax

return will be submitted in relation to income which is both income arising from shipping

activities and income which is not income arising from shipping activities.

I finally declare that to the best of my knowledge the licensed shipping organisation

does not stand to lose any of the concessions granted nor has it waived any of the said

concessions under the regulations and the Act.

I make this declaration in full knowledge of the consequence of false declarations

under Maltese law.

Signature

Identity Document No

Status

Date

(1)

Delete as necessary.

(2)

Where the licensed shipping organisation does not yet or, no longer owns, operates, manages or administers

a ship, a statement to that effect shall be made.

B

Mitbug[ fl-Istamperija tal-Gvern — Printed at the Government Printing Press

By virtue of subarticle (9) of article 84Z of the Act, the Act Amendment to the

Merchant Shipping

shall be amended as follows>–

Act.

(a) for article 85 there shall be substituted the following> -

“Interpretation.

85. (1) For the purposes of these Regulations and

unless the context otherwise requires -

“dividend” has the same meaning as is assigned to

it by article 2 of the Income Tax Act<

“tonnage tax ship” means either a ship declared to

be a tonnage tax ship by the Minister in terms of article

85A of this Act, or a ship registered under Part II or IIA

of the Act of not less than 1000 net tonnage which is

owned entirely, chartered, managed, administered or

operated by a shipping organisation<

“operation” in respect of a tonnage tax ship includes

the operation of such ship in any shipping activities,

whether under charter or under any other commercial

arrangement<

“resident in Malta” means in the case of a body of

persons, any such body as is formed and registered in

Malta, or which has a place of business in Malta or which

is controlled, directly or indirectly by a person or persons

resident in Malta<

“shipping activities” means the international

carriage of goods or passengers by sea or the provision

of other services to or by a ship as may be ancillary

thereto or associated therewith or as otherwise may be

prescribed<

“shipping organisation” shall have the same

meaning ascribed to such term in article 84Z of this Act.

(2) A shipping organisation qualified to own a Maltese

ship wishing to own or operate tonnage tax ships shall register

with the Minister responsible for finance by submitting to

him in writing the following particulars>

(a)

the name of the organisation<

(b) the address of the registered office of the

organisation<

(c) the name and tonnage of the ship which it

wishes to own or operate as a tonnage tax ship<

and shall notify the Minister in writing from time

to time of any alterations in such particulars.”<

(b) for article 85A there shall be substituted the

following>

“Minister

85A. The Minister may with the concurrence of the

may declare

Minister responsible for finance and subject to such conditions

a ship to be a

tonnage tax

as he may deem appropriate, declare to be a tonnage tax ship,

ship.

a ship of any net tonnage, irrespective of operations or trade

in which engaged, which but for such tonnage, operations or

trade would otherwise satisfy all other requirements of a

tonnage tax ship under subarticle (1) of article 85 of this Act.”<

(c) articles 86 and the Fifth Schedule relative

thereto shall be deleted<

(d) articles 87 to 88A shall be deleted.

(1) Notwithstanding anything contained in the Income Tax Inapplicability of

Act, or in any enactment replacing that Act, if the condition contained the

Act.Cap. 123.

in subregulation (3) hereof is complied with, and provided that all

relevant registration fees and tonnage taxes are duly paid as may have

been prescribed by regulations made from time to time, including an

amount paid to the registrar equal to the annual tonnage tax for that

year in addition to that paid by the owner>

(a) no further tax under that Act shall be charged or payable

on the income, to the extent that such income is derived from

shipping activities, of a licensed shipping organisation, or

(b) no further tax under that Act shall be charged or payable

on any gain arising on the liquidation, redemption, cancellation,

or any other disposal of shares, securities or any other interest,

including goodwill, held in any licensed shipping organisation

owning, operating, administering or managing a tonnage tax ship

while she was a tonnage tax ship>

Provided that the activities and objects of the organisation,

where applicable, are restricted to such activities and related

activities.

(2) Notwithstanding anything contained in the Income Tax

Act or in any enactment replacing that Act, no tax under that Act shall

be payable by any person on interest or other income payable to him in

relation to any financing of the operations referred to in article 84Z(1)

of the Act and any regulations issued thereunder, of licensed shipping

organisations, or the financing of any tonnage tax ship>

Provided that the application of such exemption to persons

resident in Malta shall be restricted to such persons who are licensed

banks, credit or financial institutions under the provisions of applicable

law.

(3) The condition referred to in paragraph (1) hereof is that

in respect of the year in respect of which exemption from tax is applied,

separate accounts were kept clearly distinguishing the payments and

receipts by the shipping organisation concerned in respect of shipping

activities, including the ownership, operation, administration or

management of a tonnage tax ship, and payments and receipts in respect

of any other business.

(4) In the case of a licensed shipping organisation, which

has no income whatsoever, or which has no income other than income

from shipping activities, a declaration may be submitted to the

Commissioner of Inland Revenue in the form set out in the Schedule to

these regulations by a person holding the warrant of a certified public

accountant and auditor under the Accountancy Profession Act, or by a

person holding the warrant of advocate in terms of the Code of

Organisation and Civil Procedure in lieu of a tax return required in

terms of the Income Tax Management Act, and the relative provisions

of the Income Tax Management Act shall, for the purpose of these

regulations, be construed accordingly>

Provided that where such person has income which is not

income from shipping activities, the provisions of this paragraph shall

not apply>

Provided further that the provisions of this paragraph shall,

in regard to licensed shipping organisations, apply to declarations

submitted before the lapse of five years from the publication of these

regulations in the Gazette, or as the Minister may prescribe.

(1) The provisions of the Exchange Control Act, or any other

enactment replacing that Act, shall not apply to any licensed shipping

organisation, in relation to any transaction connected with the ownership,

operation, administration, management, purchase or financing of a

tonnage tax ship, or any other shipping activity, or transaction ancillary

thereto.

(2) Persons not resident in Malta who are officers or

employees of a licensed shipping organisation, and the organisation in

respect of such officers and employees, shall be entitled to be exempt

from the provisions of the Social Security Act, and of any enactment

replacing that law>

Provided that this provision shall apply only in respect of

transactions, operations, things and persons that are relevant and

necessary to the purposes for which a licensed shipping organisation is

constituted, or to its management or administration.

Notwithstanding anything contained in the Duty on Documents Inapplicability

the Duty on

and Transfers Act, or in any enactment replacing that Act, or in any Documents and

regulations made thereunder, no duty chargeable in accordance with Transfers

that Act shall be payable in respect of any instrument connected with or

involving>

(a) the registration of a tonnage tax ship under Part II and

Part IIA of the Act and other registrations relating to a tonnage tax

ship made under the said parts< or

(b) the issue or allotment of any security or interest of a

licensed shipping organisation or the purchase, transfer, assignment

or negotiation of any security or interest of any licensed shipping

organisation or other company as above< or

(c) the sale or other transfer of a tonnage tax ship or any

share thereof< or

(d) the registration of any mortgage or other charge over or

in relation to any ship or licensed shipping organisation, any transfer

or discharge thereof, any receipt relative thereto, and any

assignments granted in connection therewith< or

(e) the assignment of any rights and interests, or the

assumption of obligations in respect of any ship or share thereof.

The concessions, exemptions, privileges and other benefits Concessions and

other benefits at the

granted or allowed by these regulations are so granted at the option of options of licensed

the licensed shipping organisation benefiting therefrom and any such shipping

organisation.

licensed shipping organisation may, by notice in writing to the Registrar-

General, opt not to be entitled to any such concession, privilege or

benefit, which shall be thereby irrevocably waived.

B