Tonnage Tax

Tonnage tax is a system where shipping companies are taxed based on the size or carrying capacity of their ships, rather than their actual profits. This method simplifies taxation, providing predictable costs and encouraging maritime industry investment. By paying a fixed or standardized amount tied to ship tonnage, companies avoid complex profit calculations, which can benefit businesses through tax stability and competitiveness. Tonnage tax is used in several countries to support and promote the shipping sector by reducing tax burdens and fostering growth.