Tax breaks set to attract international shipping sector

Maritime services company, Maritime Management, has located to NovaUCD, University College Dublin's Innovation and Technology Transfer Centre.

The company provides ship management, shipping finance, and maritime consultancy to the international maritime and shipping industry based in Ireland, specialising in facilitating ship owners and investors in benefiting from new tax efficiencies that exist here.

In December 2002, the European Commission approved the Government's proposal for a new tonnage tax regime, allowing shipping companies to calculate their profits on the basis of a specified notional profit per day depending on the tonnage of the ship concerned.

The standard corporation tax rate (12.5%) for qualifying shipping activities is then applied to the amount of profit earned.

As such, this tax, which is now in place, provides excellent conditions for companies carrying out qualifying activities.

The effect of this new tax regime is to make Ireland an attractive country for carrying out shipping activities both for the indigenous shipping industry and for foreign shipping companies wishing to locate in Ireland.

Maritime Management has recently co-ordinated the transfer of the "MV Frea", a chemical carrier owned by Norwegian interests to the Irish Ship Register, the first of its type.

Maritime Management is now acting as the owners' Irish Manager.

The ship, a 16,000 ton vessel delivered in 2003, is owned by Frea Shipping Limited (Ireland). The ship is currently on time charter to the oil giant ExxonMobil.

Jan Berg, founder and manager director of Maritime Management said, "Maritime Management is obviously delighted with this development. The Irish Ship Register has a reputation for stringent safety and surveying requirements and is renowned for the quality of its fleet."

NovaUCD is University College Dublin's €10m Innovation and Technology Transfer Centre. This purpose-built centre, which has been funded through a unique public-private partnership, nurtures new technology and knowledge-intensive enterprises.

The Centre is managed by the University Industry Programme, which has established an excellent track record in spinning-off campus companies.