{
  "url": "https://openlegislation.uk/eu-decision-2019-1116/article-3",
  "json_url": "https://openlegislation.uk/eu-decision-2019-1116/article-3.json",
  "legislation": "eudn/2019/1116",
  "legislation_title": "Commission Decision (EU) 2019/1116 of 19 December 2017 on State aid SA.33829 (2012/C) Maltese tonnage tax scheme and other State measures in favour of shipping companies and their shareholders (notified under document C(2017) 8734) (Only the English text is authentic) (Text with EEA relevance)",
  "legislation_url": "https://openlegislation.uk/eu-decision-2019-1116",
  "path": "article/3",
  "kind": "article",
  "number": "3",
  "heading": null,
  "text": "1. The following elements of the tonnage tax scheme are incompatible with the internal market:\n(a) The eligibility for tonnage taxation of income generated from the operation of non-propelled barges, oil rigs and fishing vessels;\n(b) The eligibility for tonnage taxation of income generated from towage and dredging vessels and from bareboat chartering out without restriction;\n(c) The eligibility for tonnage taxation of vessels under time/voyage chartering without restriction;\n(d) The eligibility for tonnage taxation of revenues from ancillary activities without the restriction that the majority of the tonnage taxed revenues of the tax beneficiary stem from core shipping activities and the lack of mechanisms in place to ensure that land-based services are provided at arm's length;\n(e) The eligibility for tonnage taxation for companies engaged in shipping without the requirement that tonnage taxed shipping organisations having also non-EEA-flagged vessels in their fleet increase or maintain the share of EEA-flagged tonnage of the fleet if this share is below 60 %;\n(f) the eligibility for tonnage taxation of activities ‘as otherwise may be prescribed’;\n(g) The exemption from taxation of capital gains from the sale or transfer of ships applied to Maltese residents.\n2. The following measures are also incompatible with the internal market:\n(a) The exemption from taxation of capital gains from the sale of shares in shipping companies applied to Maltese residents;\n(b) The exemption from income tax on the interest income or other income of financial institutions in relation to the financing of shipping companies or tonnage tax ships;\n(c) The exemption from the duty on documents and transfers for the transfer of shares in shipping organisations for Maltese residents;\n(d) The exemption from payment of fees at ministerial discretion.\nMalta shall remove those tax exemptions from its legislation and adapt the scope of the tonnage tax scheme as specified in the commitments set out in the Annex.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/eudn/2019/1116/article/3",
    "retrieved_at": "2026-11-01T15:12:39.550201+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}