Changes to the way in which shipping companies pay their tax will make it more attractive to operate under Irish tax rules in future.

This was stated by Independent MEP Marian Harkin when she commented on the decision of the European Commission to authorise an amendment of the Irish tonnage tax.

“What this means is that any shipping company operating under Irish tax rules can increase the number of chartered ships it operates which will qualify for Ireland’s advantageous corporation tax rate”, she said.

It also meant that a shipping company could elect to pay tax on a notional profit basis rather than on the actual profits of the business, she said.  “What this amendment does is to incentivise shipping companies to operate out of Ireland by having to pay our low rate corporation tax”, the Independent MEP said.

This should have the effect of creating jobs and increasing the focus on Ireland as a location for shipping registration, she said.  “It should assist the Government in promoting shipping activity through the Irish Maritime Development office and the introduction of a modern system of ship registration in Ireland for commercial ships”, Marian Harkin MEP said.