Law Decree No. 144 of 23 September (“Decree 144”) contains provisions on the application of the tax and social security benefits provided by the international registry scheme under Law Decree No. 457 of 30 December 1997 (“IR Regime”).
The IR Regime offers several benefits, including reduction of taxable corporate income, a tax credit on withholding taxes for shipping companies (corresponding to the income tax due by employed and self-employed crew of vessels listed in the international registry engaged in commercial trade), and exemption from social security and welfare contributions for seafarers on board vessels listed in the international registry.
Decree 144 came into force on 24 September and needs to be converted into law by 23 November to avoid losing its effectiveness retroactively. So only then will we know whether the several doubts the decree raises are resolved.
But in the meantime: What are the key points of the new tax measures? And who stands to benefit?
Our Shipping & Transport Focus Team breaks it all down here.