Tonnage Tax
Tonnage tax is an alternative to Corporation Tax to which certain shipping companies may elect to have their profits charged, subject to certain conditions.
- Who is chargeable to Tonnage Tax?
- Particulars required in the notification of election for Tonnage Tax
- Reference material
Who is chargeable to Tonnage Tax?
Certain shipping companies may elect to have their profits charged to Tonnage Tax rather than Corporation Tax, subject to certain conditions.
Particulars required in the notification of election for Tonnage Tax
A qualifying company wishing to calculate profits under Tonnage Tax rules must make an election for Tonnage Tax under section 697D Taxes Consolidation Act 1997. The election is made by completing
the 
Form Tonnage Tax 1 - Application Form for entry/election into the Tonnage Tax scheme under section 697D Taxes Consolidation Act 1997 (PDF, 128KB) and submitting it to the Revenue Commissioners.
Information to be provided on Form Tonnage Tax 1 includes:
- The type of election to be made i.e. single company or group of companies election.
- In the case of a group election the name and address of the representative company and the name of the company secretary (a qualifying group of companies may nominate one company to act as the representative company to deal with tonnage tax matters on behalf of the whole group).
- The accounting period from which the election is to take effect (if this is not the period in which the election is made the reason must be stated).
It should be noted that:
- Each member company of a group must complete and submit a separate Tonnage Tax 1 Form
- Details of company directors, beneficial shareholders, qualifying ships, tonnage tax activities and strategic and commercial management of the qualifying ships must be provided.
- The Declaration at the end of the Form must be signed for each election.
- At the end of the appropriate accounting period the Form CT1 Supplement - Tonnage Tax Profits (PDF, 103KB) should be submitted to Revenue together with
the company's regular Corporation Tax return.
The completed Tonnage Tax 1 Form should be submitted to:
Corporation Tax Unit,
Direct Taxes, Interpretation and International Division,
2nd Floor,
Stamping Building,
Dublin Castle,
Dublin 2.
[tel: 01.7024102]
Reference material
- Sections 697A and 697D and Schedule 18B TCA 1997
- Form CT1 Supplement - Tonnage Tax Profits (PDF, 103KB)
- Form Tonnage Tax 1: Application Form for entry/election into the Tonnage Tax scheme under section 697D Taxes Consolidation
Act 1997 (PDF, 119KB)
Tax & Duty Manuals - Section 16 FOI Act
