If You Have a Ship, You Will Not Subject to VAT!

11.08.2017

There are a lot of tax exemptions and exceptions in order to develop Turkish Maritime Sector and Fleet.
Income tax, corporation tax, stamp tax, fees and other tax piles applied to Turkish flagged ships and yachts according to Turkish International Ship Registry Law are stated below.

1- THERE IS NO NEED TO PAY TAXES FOR EARNINGS RECEIVED FROM SHIPS REGISTERED IN TURKISH INTERNATIONAL SHIP REGISTRY.
The earnings received from                                                                                     1-the management and
2-transfer of “ships” and “yachts” registered in Turkish International Ship Registry are exempted from Income tax, Corporate tax and funds.

2- PURCHASE AND SELLING OF SHIPS REGISTERED IN TURKISH INTERNATIONAL SHIP REGISTRY ARE EXEMPTED FROM STAMP TAX.
1- Purchase
2- Selling
3- Hypothec
4- Registry
5- Credit
6- Charter
7- Time Charter
8- All of the freight contracts related to ships and yachts registered in Turkish International Ship Registry are not subject to stamp tax and fees. In addition to that, fees taken because of these transactions are not subject to banking and insurance transaction tax and funds.

3- SELLING AND TRANSFER OF SHIPS REGISTERED IN TURKISH INTERNATIONAL SHIP REGISTRY ARE EXEMPTED FROM TAXES.
The transfer of ships from Turkish International Ship Registry to another registry (by cancelling) or transfer by another way is exempted from tax.
However, according to sub clause (c) of the first clause of article 4 of Turkish International Ship Registry Law, if a ship is transferred from Turkish International Ship Registry to another registry (by cancelling) or transfer by another way , these ships have to be operated at least 6 months as registered in Turkish International Ship Registry.

Source: Turkish International Ship Registry Law
(Article 12 – (Amendment: 2.12.2004 – article 5266/3), (Amendment of the second clause: 18.1.2017-article 6770/14), (additional paragraph: 18.1.2017-article 6770/14)