Attractive tax system for shipowners and seafarers

Registering a ship with the RIF provides access to an attractive tax system, with different arrangements available, 4 of which in particular will make a real difference.

1) Tax-based leasing (Art. 39C, General tax Code): the shipowner reduces costs to acquire the ship.
In order to amplify benefits from the decreasing depreciation, it is possible for the party financing the ship to use to an ad-hoc company which acquires the ship and makes it available to the shipowner under a bareboat charter with a purchase option at the end of the contract. Thus, the lending institution transfers to the lessee /shipowner a part of the tax savings obtained thanks to the accelerated depreciation of the ship, in the form of a reduction in the rent or the sum of the purchase option.

2) Tonnage tax (Art. 209-0 B, General tax Code): the shipowner reduces the amount of taxes due.
The optional tonnage tax regime, as set up by France, was approved by the European Commission in 2003. It is available only to shipowners subject to corporate income tax, when at least 75% of the turnover comes from the operation of commercial ships.

3) Green extra depreciation (Art. 39 decies C, General tax Code): the shipowner develops a more environmentally friendly fleet.

An exceptional tax deduction is possible for owners who choose more environmentally friendly means of propulsion for their ships.

4) Income tax exemption for seafarers on board ships registered under the RIF (Art. 81A, General tax Code): an increased attractiveness for the shipowner as an employer.
The following conditions apply for this advantage:

• the seafarer is a tax resident in France;
• the employer is established in France or in another member State of the European Union;
• the seafarer works at sea on international voyages at least 183 days a year.

More information on financing and taxation of ships registered under the RIF in the dedicated section.