Taiwan uses flexible tonnage tax to entice carriers
The Taiwanese government is considering steps to make its shipping industry more competitive amidst a recession on the island, Dow Jones reported over the weekend.
The plan is primarily aimed at inducing domestic carriers to register their ships in Taiwan.
An advisory committee has recommended that the government give carriers flexibility in how to pay taxes outside of corporate taxes. The measure would essentially allow carriers to decide how to pay tonnage tax, which is assessed based on the tonnage of a vessel registered in Taiwan rather than the amount of cargo it actually carries.
The tonnage tax proposal comes as Taiwan's legislature approved a 20 percent reduction in the country's corporate tax as well as reductions in personal income taxes, the news agency reported.
Taiwan uses flexible tonnage tax to entice carriers
