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Privacy Unlimited FZE

Contributed by Privacy Unlimited FZE
22 July, 2013


Every maritime or aircraft vehicle owner, whether a businessman or a private person, requires a flag for their vehicle, i.e. the vehicle is to be registered.

In the world of today, we see that a significant amount of vessels are registered in the so-called “offshore jurisdictions” that have developed their Maritime and Aircraft Management Legislation specifically to attract international customers.

What are the benefitsthat convince businessmen and private individuals to choose registration under the “offshore” flag?

Here is a short-list:

  • Security and confidentiality. Transfer of vehicle ownership to a corporate body registered somewhere outside of the highly regulated jurisdictions gives enhanced privacy to vehicle owners.
  • Low taxation or total exemption from taxation on registration and ownership of ships and aircraft. Having a vehicle registered, say, in Malta or in the British Virgin Islands, allows you to minimize or even attain zero taxation on income derived from the lease/operation of a boat/aircraft used for international transport.
  • Simplicity and convenience of registration procedures. Many of the offshore jurisdictions have straight-forward and simple registration procedures saving clients both time and effort. Registration of a boat or an aircraft can be done remotely, without the need for the vehicle owner to travel.

Today, Malta is among the most popular and admitted jurisdictions for its strong maritime and aviation sectors. Malta's respected flag and established connections with both European and non European states make it a convenient platform for international shipping or aircraft business. The Maltese Merchant Shipping Act was introduced in 1973; today, the Maltese Register is the second largest in Europe and the eighth largest in the world.

The enactment of the Aircraft registration act on 1 October 2010 was also designed to put Malta at the forefront of the aviation industry.

“Our aim is to create a cluster specifically for the aviation sector where Malta can attract and support the growth of a number of businesses”

- Mario Galea, Business Development of Malta Enterprise, Government agency for economic development said.

Malta currently provides one of the most tax-efficient regimes for international shipping and aircraft operations. It opens up to Maltese-resident shipping and aircraft operators the planning points applicable in respect of foreign source income, whilst enabling them to make use of Malta’s wide network of double tax treaties. The income derived from the ownership/lease/operation of a boat/aircraft used for international transport is considered a non-resident income, which is not subject to the local taxation. Shipping/aviation income receivable by a foreign incorporated, Maltese resident entity, is only subject to tax in Malta if remitted to Malta. These provisions of the local tax legislation make Malta a very attractive jurisdiction for re-domiciliation of foreign companies conducting international shipping and aviation operations.

More on incorporation in Malta can be found at http://www.privacy-solutions.com/maltese-company.html.

The Isle of Man is another well-recognized offshore jurisdiction that has a long Ship Management history. It passed the Merchant Shipping (Registration) Act 1984 in order to encourage the registration of ships on the island and there is a zero-tax regime for ship management companies based there.

In August, 2006, the Isle of Man reached the White List of the Paris MOU and in the same year was admitted by The Round Table of International Shipping Associations as the best shipping registry in the world in terms of safety, environmental and social factors.

Since then, the Isle of Man Ship Registry announced some important changes to it’s operating practices to enhance it’s registration process. The registration procedures and requirements were simplified and the range of accepted ship types was expanded. The Register also extended the number of countries accepted for ownership of ship vessels, thus making Isle of Man flagging more attractive for international clients.

In 2006, the government announced the introduction of an Aircraft Register. Unlike most other registries, where both private and commercially operated aircraft are accepted, the Isle of Man’s register is focussed solely on high quality private and corporate aircraft. It is supported by the Island’s well established banking sector, lawyers familiar with aviation law, insurance companies which can provide cover without the addition of an insurance premium tax and corporate service providers experienced in structuring companies to take advantage of the Island’s beneficial tax regime. You may find out more about the advantages for companies in the Isle of Man at http://www.privacy-solutions.com/isle-of-man-incorporation.html

Since the Registry was established, over 500 high quality private and corporate jets and twin turbine-engine helicopters have been registered. Despite the economic downturn in the rest of the world, the Registry continues its impressive growth.

These are just a few of examples showing that yacht and aircraft owners can significantly adjust their tax burden by transferring their vehicles ownership to more tax-efficient jurisdictions.


Contact Privacy Unlimited FZE
P.O. Box 31291,
Al Jazeera Al Hamra,
Ras Al Khaimah,
UAE

Tel: +971 7 2434464
Email: office@privacy-solutions.com
Web: privacy-solutions.com




 


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