Poland

The Polish tonnage tax scheme is established by the Tonnage Tax Act, adopted on 24 August 2006.

The Tonnage Tax Act allows tonnage tax liable ship operators to be exempted from paying tax on profits in relation to revenue from eligible activities. The ship operators have the right to choose tonnage tax treatment by submitting a special declaration, by which they opt for this type of taxation.

Pursuant to Article 5 of the Tonnage Tax Act, for each vessel subject to tonnage tax, the taxable profits pertaining to eligible activities shall be fixed at a lump sum calculated on the basis of its net tonnage as follows, per 100 NT, per 24-hour period started and corresponding to the period of operation in the month concerned of all the operator's ships, the revenue from which is subject to tonnage tax:

Net capacity of vessel Calculation of flat-rate revenue

Up to 1000 NT The equivalent of EUR 0.5 per 100 NT

From 1001 to 10 000 NT The equivalent of EUR 0.35 per 100 NT over 1000 NT

From 10 001 to 25 000 NT The equivalent of EUR 0.20 per 100 NT over 10 000 NT

From 25 001 NT The equivalent of EUR 0.10 per 100 NT over 25 000 NT

For the purposes of calculation, the net capacity of the vessel is rounded up or down in the following manner: a capacity of less than 50 NT is discarded and a capacity of 50 NT or more is rounded up to the nearest 100 NT.

The amount of tonnage tax due is calculated from the taxable base to which the rate of 19% is applied. The amount of tonnage tax due is calculated without deduction of any cost incurred in the generation of such revenue.

Under Article 8 of the Tonnage Tax Act, revenues from the sale of an eligible vessel by a tonnage tax company will go out of the perimeter of tonnage tax revenues and be taxed at a flat rate of 15% where they are not fully used within three years for the purchase, repair, modernisation or adaptation of another vessel.

1.1. Eligibility criteria

1.1.1. Eligible vessels

Only seagoing vessels listed in the Polish maritime register are eligible for tonnage tax. Therefore an eligible vessel is a vessel that is flagged in Poland and engaged in international maritime transport, which complies with all the requirements for navigation at sea. Acceptance of a ship as seagoing will normally require the ship to be certified as such under the International Load Line or the Safety of Life at Sea Convention (hereinafter "the SOLAS Convention") .

1.1.2. Eligible activities

The activities eligible for tonnage tax are as follows:

(i) Transport of freight and/or passengers;

(ii) Sea rescue operations;

(iii) Maritime towage, on condition that at least 50% of the revenue from the work actually per-formed by the tug over a fiscal year was generated by the provision of maritime transport and not towage to and from a port;

(iv) Dredging, on condition that 50% of the revenue from the work actually performed by the dredger during the course of a year is generated by the transport at sea of materials.

In addition, Article 3(2) of the Tonnage Tax Act provides ancillary activities that are eligible for tonnage tax on condition that they are connected with the provision of eligible services stipulated above. Article 3(3) of the Tonnage Tax Act establishes a list of activities that are never eligible for tonnage tax, such as exploration from the sea bed, fishing, construction, underwater works, etc.

1.1.3. Eligible entities

Eligible companies are operators fulfilling certain criteria.

An operator is defined in Article 2(3) of the Tonnage Tax Act as:

(i) A private individual (natural person) or a legal person, having respectively its place of residence, registered office or management on the territory of Poland;

(ii) A partner in a civil partnership, registered partnership, limited partnership or limited joint-stock partnership having its registered office, management or place of residence on the territory of Poland; or (iii) a foreign entrepreneur/undertaking within the meaning of the Act of 2 July 2004 on freedom of economic activity, performing in Poland activities eligible for tonnage tax; and meeting at least one of the following conditions:

- To be directly involved in navigation using maritime vessels personally owned or owned by another person and to hold a valid Document of Compliance ;

- To be the owner of a vessel but not to engage personally in navigation of his own vessel or that of another person;

- To manage a vessel of another person, on behalf and account of that person on a contractual basis, and to hold a valid Document of Compliance.

Articles 3 and 4 of the Tonnage Tax Act provide that tonnage tax eligible ship-owners must put un-der tonnage tax all eligible vessels and all eligible activities performed onboard these vessels. Consequently, a selective use of the tonnage tax scheme is excluded.

Only seagoing vessels listed in the Polish maritime register are eligible for tonnage tax.