Irish Tonnage Tax top billing at the Global Tax for Shipping Conference

Certainty, stability, flexibility and international corporate compatibility are all key components of the Irish Tonnage Tax regime. The regime, established for over 10 years, offers one of the most competitive on-shore corporate tax rates to international shipping companies.

The Irish Maritime Development Office (IMDO) has published an independently researched tonnage tax report detailing the benefits of locating a maritime operation in Ireland. The report provides an update on Ireland’s extensive double tax treaty network. The report also highlights Ireland’s expertise in asset leasing and the well developed structured finance regime which can be directly applied to international maritime financing. The Irish tonnage tax is derived from a ‘notional’ profit calculated based on the tonnage of a vessel, which is then subject to the Irish corporate tax rate of 12.5%.

Irish Tonnage Tax: Opportunities for the International Shipping Industry was produced by independent experts PwC and will be launched at the Global Tax for Shipping Conference, taking place in London on the 15th and 16th of October. This two day conference will be addressing global strategies for implementing tax-efficient structuring for maritime companies. Over the course of the conference, a panel of experts will compare global tax jurisdictions and the implications for international maritime companies. Jim Healy, Tax Director, Shipping & Financial Services KPMG Ireland will be presenting the advantages and requirements of the Irish tonnage tax regime on the first day of the conference.

The IMDO is the Irish government agency which provides support and advice to maritime companies setting up operations in Ireland. The IMDO’s Director Liam Lacey and Business Development Manager Rebecca Wardell are attending the conference and will be on hand to provide companies with advice on opportunities currently available in the Irish market. In his forward to the report, Liam Lacey says ‘this publication provides independent validation of Ireland’s status as a world class location in which to conduct business and more particularly, sets Ireland apart as a hub for maritime commerce’.

As a country, Ireland continues to maintain its reputation as a pro-business environment that has attracted investment from some of the world’s largest companies over the past three decades. In Forbes’ 2014 annual ranking of the Best Countries for Business, Ireland was named number one country in the world for business. More recently, figures released by the Irish Central Statistics Office show that the national economy grew by more than seven times the EU average between April and June 2014. This is the strongest growth rate recorded in Ireland since the early 2000’s, showing a strong and stable recovery. Continuing in this vein, the Irish Economic and Social Research Institute predict that Ireland’s GDP is to grow by approximately 5% in 2014 and 5.3% in 2015.

Source: Irish Maritime Development Office