Shipping registry changes tonnage taxes

| 26/10/2011

(CNS) The Maritime Authority of the Cayman Islands (MACI) is introducing a new fee structure which will come into effect on 1 January.  In what MACI described as a bid to remain competitive with other territories, it carried out an investigation of the annual tonnage fees comparing them to other jurisdictions. The result MACI said was the creation of a simplified and competitive structure which for the first time in its history provides two different formulations, one for merchant vessels and one for pleasure yachts, including those engaged in trade.

MACI’s Director for Global Operations, Kenrick Ebanks said: “We have long recognized that the economic operating profile for merchant ships is very different to yachts and it is therefore, entirely logical to develop two separate regimes which take account of this fact.”
The new ATF structure for merchant ships will now include a flat minimum ATF of USD1,000, and this rate will be chargeable up to 2,500 gross tonnes. For vessels in excess of this figure, the first 2,500 tonnes will be charged at the flat minimum of USD1,000 with the remainder charged at USD0.11 per unit gross tonne.

For pleasure yachts, including yachts registered as commercial vessels, the flat minimum will be USD400 and this will be chargeable up to 500 gross tonnes. Larger yachts will be charged at USD600 for the first 1,000 tonnes with the remainder charged at USD0.20 per unit gross tonne.

MACI has said it is confident that the new structure will benefit its clients, and will ensure that the the Cayman Islands remain an attractive place for ship registration.

Category: Business

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