Division 4 Malta commits to explicitly limit the application of tonnage taxation to the chartering out of vessels on bareboat basis and similar transactions between third parties. The chartering out of vessels on bareboat basis to third parties and similar transactions can be eligible only as ancillary activity of genuine shipping companies in the context of temporary overcapacity subject to the following conditions:

United Kingdom

(a)

Only to deal with a situation of temporary excess capacity;
(b)

For a maximum period of up to three years;
(c)

Bareboat chartered out capacity will not exceed 50 % of the shipping companies' fleet, calculated on a group basis;
(d)

Excess capacity specifically acquired for chartering out cannot be eligible.

Annotations

f1: This also includes renting of ships (especially yachts) on bareboat charter basis to natural persons.