Luxembourg hightlights of the shipping registry

Following the Maritime Act 1990 as amended 1994 here are the principle of elligibility to enter a vessel on the Luxembourg shipping registry:

• Vessels of minimum 25 tons and maximum 15 years of age at keel laying which are used to transport persons or goods. Waiver could be granted under certain circumstances such as historic vessels. Vessels will nevertheless complies with all international conventions ratified by Luxembourg

• Ships must be owned at least 50% by residents of an European Union or by commercial companies having their registered office in a member state of the European Union

• Vessels chartered on a bareboat charter party

• Vessel could be registered as full registry, Bareboat-In registration, Barebot-Out registration, Factortame registration.

• The Luxembourg shipping company will be accredited by the Minister of Economy and the maritime company must secure the services of a marine manager duly licensed by the Minister of Economy.

Fiscal advantages of shipping companies incorporated in Luxembourg

• Tax credit on investment up to 14% of the acquisition price of the ship. In case the income tax liability is less than the amount of the tax credit then the difference could be carried forward to the following 10 years.

• Depreciation based on the useful life of the vessel as follows : linear depreciation of 8,33% per year during 12 year or accelerated depreciation to three times the linear depreciation with a rate of maximum 30%.

• Capital gain are kept free if re-invested  within two years in anykind of assets being kept in the company for at least 5 years.

• Exemption of municipal business tax.

• Tax free provision for repairs & maintenance

• No VAT to be paid on sale & purchase of ships

• Ship mortgage free of any taxes

• Between 0% and 6% taxation on gross wages for seafarers

• Free distribution of dividend within the EU

• Indefinity carry forward of losses

• Double treaties convention signed with a large number of countries