PwC

Tax & Legal

Tax & Legal

Trade tax deduction for shipping in international waters independent of term of operation


The Supreme Tax Court has held the 80% deduction from income chargeable to trade tax from shipping operations in international waters to be available regardless of a short or long term intention to continue the operation. If, however, the ship had already been sold prior to commissioning, the capital gain is not derived from an international operation and is chargeable to trade tax in full. Continue reading