Flexible registration and a low tax regime – reasons why Malta has surpassed Greece as the No. 1 shipping registry in the EU

1. Malta’s International Law Firm &
Advisory Boutique
Maritime & Yacht
Registration & Services
Flexible Registration Requirements
Low Tax EU Jurisdiction
Low VAT Scheme
Largest Shipping Registry in EU - Surpassing Greece
7th Largest Shipping Registry in the World
Why Malta? Malta has encouraged the registration cation and renewal fees are reasonable in
and use of the Malta Flag by both commercial ship and yacht amount.
owners; through the investment and improvement of both
administrative services and the maritime infrastructure on Fiscal Benefits of Malta Flagged vessels
Malta.
In addition to Malta’s generous ordinary corporate tax re-
In fact, Malta has recently surpassed Greece in the number fund system, in respect of shipping companies and ship
of vessels being registered under its Flag. managers - licensed as shipping companies, which are re-
sponsible for technical or crew management of tonnage tax
Registration Rules
ships:
Provisional Registration
 Exemption from tax - any income arising from shipping
Under the Malta flag, a vessel may be provisionally regis- activities and any income or gains arising from the sale
tered for 6 months – extendable for up to 1 year – during or transfer of a tonnage tax ship or in respect of any dis-
which time the owner would be required to submit certain posal of rights to acquire a ship that would qualify as a
documentation including a copy of the vessel’s international tonnage tax ship.
tonnage certificate, evidence of seaworthiness together with
 Exemption from tax - gains arising from the liquidation,
payment of the relevant fees and tonnage tax. During the
redemption, cancellation or any other disposal of shares,
provisional registration period, the owner is required to sub-
securities, or other interest (including goodwill) held in
mit additional documentation regarding the vessel, cancella-
any licensed shipping company owning, operating, ad-
tion of previous registration (if any) and evidence of owner-
ministering or managing a tonnage tax ship, whilst a ton-
ship thereof. Once the necessary documentation is supplied
nage tax ship.
the vessel will be permanently registered under the Maltese
flag.  Exemption from tax - on payments of interest or other
income relating to the financing of the operations of
Permanent Registration
shipping companies or financing of tonnage tax ships
Permanent registration is renewable annually along with an
(Continued on page 2)
annual fee to the Malta Marine Association (MMA). All appli-
Acumum Legal Group: Maltese, UK & International Lawyers Knowledgeable | Superb Client Service | Cost Efficient
info@acumum.com | www.acumum.com | Skype ID: acumum
Malta 356 2778 1700 | UK 44 (0)20 7060 4277 |USA 1646 569 9003

2. Malta’s International Law Firm & Advisory Group
Maritime & Yacht
Registration & Services
 No tax on dividends distributed by the shipping com-
Additional advantages of registering a Malta ship or
pany arising from profits of shipping activities.
 No duty payable on any instrument connected with or yacht:
involving  No nationality restrictions for master, officers and crew
- the registration of a tonnage tax ship, the sale or
 No trading restrictions on Malta vessels
transfer (including shares), assignment of any rights or
interest, or assumption of obligations  Vessels under construction may be registered
- the issue of allotment of any security or interest of a  Reputable and internationally recognised register
shipping company or the purchase, transfer, assignment
or negotiation of any security or interest
 Excellent international relations
- registration of any mortgage or other charge over, or  European Flag with a long maritime tradition
any transfer or discharge, or any receipt or assignment
 Yachts may be registered under the Malta Flag by cor-
in respect of any ship or licensed shipping company
porations irrespective of nationality, or by EU citizens
VAT Scheme for Yacht Finance Leasing
 Malta is on the White List of the Paris MoU
It is possible to reduce the VAT levied when vessels are
under finance lease arrangements; provided that the vessel  Attractive incentives to owners, registered charterers
is owned by a Malta registered company and the lease
agreement is less than 3 years. Added to which, the lease and financiers of Maltese ships
agreement must contain an option to purchase the yacht
at the end of the lease and such agreement is approved by  No restrictions on the sale or mortgaging of Maltese
the Malta VAT authorities beforehand. registered yachts and super yachts
The applicable Malta VAT rate levied is dependent upon
 Availability of technical assistance from a team of
the type of vessel and its deemed use within the EU.
qualified and experienced mariners.
Table - Malta effective VAT rates due:
% of Lease Subject
Yacht Type Effective VAT Due
to VAT
Yachts over 24 metres 30% 5.4%
Sailing yachts from 20.01 - 24 metres 40% 7.2%
Motor yachts from 16.01 - 24 metres 40% 7.2%
Sailing yachts from 10.01 - 20 metres 50% 9%
Motor yachts from 12.01 - 16 metres 50% 9%
Sailing yachts up to 10 metres 60% 10.8%
Motor yachts from 7.5 - 12 metres 60% 10.8%
Acumum Legal Group: Maltese, UK & International Lawyers Knowledgeable | Superb Client Service | Cost Efficient
info@acumum.com | www.acumum.com | Skype ID: acumum
Malta Office + 356 2778 1700 | Local Rate: UK 44 (0)20 7060 4277 |USA 1646 569 9003
Information for guidance purposes only © Acumum. All Rights Reserved

3. Maritime & Yacht Malta’s International Law Firm & Advisory Group
Registration & Services
Malta’s Ordinary Low Tax Laws
Malta is one of few countries left in the world that still has a
full imputation system. Meaning, with an effective corporate  Use of IFRS functional convertible currency – for statutory
tax rate of 5%, following application of tax refunds, capital, financials, tax and tax refund purposes
shareholders are 0% taxed on any dividends that they receive.  Revenue rulings are binding for 5 years or 2 years following a
change in legislation.
A 100% EU & OECD authorized and legitimate tax system,
Malta offers: What ever your fancy - whether for business or pleasure,
Acumum can assist you in tax efficient and cost effective regis-
 No capital gains in Malta on disposal of assets
trations and structuring
 No withholding on outbound payments— includes interest,
royalties, dividends, lease payments, or liquidation pro-
ceeds,
 No wealth or inheritance taxes
 Re-domiciliation of companies allowed—
 No exit or entry taxes,
 No transfer pricing, controlled foreign company (CFC) or
thin capitalisation rules,
 18% VAT- input recoverable & not chargeable for output by
international leasing companies.
 Over 62 double taxation treaties worldwide
 Tax refunds are legally guaranteed and paid within 2-3 weeks
of application
Acumum can assist you via our dedicated Malta Maritime specialists in providing you with a range of services:
Formation of shipping companies - both ship owning and ship management
Malta yacht & ship registration
Malta bareboat charter registrations
Mortgage registration & discharge
Security documentation
Handling of all flag administration matters
Tax planning for merchant vessels and yacht owners
Accounting and secretarial support
If you would like further information or would like Acumum to start the process of registering your ship or yacht under
the Malta flag, please contact us.
Acumum Legal Group: Maltese, UK & International Lawyers Knowledgeable | Superb Client Service | Cost Efficient
info@acumum.com | www.acumum.com | Skype ID: acumum
Malta Office + 356 2778 1700
Local Rate: UK 44 (0)20 7060 4277 |USA 1646 569 9003