Tonnage tax system

The tonnage tax system is a special taxation method for shipping companies that calculates taxes based on the size or tonnage of their ships, rather than their actual profits. This approach encourages investment in shipping by providing predictable taxation benefits and simplifying financial management. Companies pay a fixed fee related to their fleet’s tonnage, making it easier to plan and avoid heavy tax burdens during fluctuating market conditions. Essentially, it treats ships more like fixed assets, promoting maritime industry growth while offering tax stability.