Shipping to get exemption from global corporation tax
Maritime industry obtains express waiver from OECD-led effort for worldwide tax cooperation.
The shipping industry looks set to be let off the hook of global corporation tax, as it slips through the net of new global tax rules.
A paper at the Organisation for Economic Co-operation and Development (OECD) has acknowledged that its Global Anti-Base Erosion Rules (GloBE) for a worldwide minimum corporation tax will not apply to shipping.
“The GloBE rules … provide for an exclusion for international shipping income, using the definition of such income under the OECD Model Tax Convention,” said the document released on 1st July, which reflects the current consensus among 130 nations.
The news comes as a relief to the industry as it finds itself increasingly constrained by environmental and technological regulation.
