The European Commission in 2018—following a six-year period of review—approved the tonnage tax regime in Malta. The EC generally concluded that the measures under Malta’s tonnage tax regime were in line with EU state aid rules and that the tax relief provided by the regime was an appropriate method of addressing global shipping competition. Malta also made commitments about the tonnage tax regime in light of the EC’s determination.
Under the Maltese tonnage tax regime, a shipping company is subject to tax on the basis of the ship’s net tonnage, rather than actual profits of the company. Tonnage taxation is applied to a shipping company’s:
Read a 2018 report providing an overview about the tonnage tax regime, prepared by the KPMG member firm in Malta, and a 2018 report [PDF 306 KB] about the EC’s action, also prepared by the KPMG member firm in Malta
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.