During its meeting of May 4, 2022, the Swiss Federal Council adopted a dispatch on a Federal Act on a tonnage tax. The bill provides that profits from the operation of seagoing vessels can in future be taxed at a flat rate based on the net tonnage (loading capacity). In key areas, the proposal is based on the existing tonnage tax regulations in the EU. The tonnage tax is voluntary.
According to the bill, at the request of the taxable person, only seagoing vessels that are operated for the following purposes can be subject to tonnage tax:
a. freight transport;
b. passenger transport;
c. towing and dredging;
d. rescue and support services;
e. cable and pipe laying;
f. construction and maintenance of offshore structures;
g. scientific marine research;
h. seismographic activity.
Subject to tonnage tax will be:
a. all profits from the operation;
b. the profit from the sale of the ship, provided that the ship was held by the taxable person for at least one year;
c. the profit from ancillary activities on board, provided that it does not exceed 50 percent of the profit from the operation of the ship determined under commercial law.
The subjecting of a seagoing vessel to the tonnage tax requires that it be entered in the register of Swiss seagoing vessels or of a state which, by ratifying the following conventions, guarantees compliance with the obligations and minimum standards specified therein:
a. The International Convention of November 2, 1973 for the Prevention of Pollution from Ships, as amended by the Protocol of February 17, 1978.
b. The International Convention of November 1, 1974, with Protocol of February 17, 1978 for the Safety of Life at Sea;
c. International Convention of 7 July 1978 on standards for the training, certification and watchkeeping of seafarers;
d. The Maritime Labor Convention of 23 February 2006.
The last day of the tax period is the decisive point in time for meeting the aforementioned requirement.
The taxable net profit from the operation of the seagoing vessel is calculated on the basis of its tonnage given as net tonnage (NT) in the international ship tonnage certificate in accordance with the international tonnage convention of June 23, 1969 and the number of operating days in the tax period.
The aforementioned taxable net profit amounts to the following amounts per operating day:
a. per 100 NT to 1000 NT: CHF 1.09;
b. per additional 100 NT up to 10,000 NT: CHF 0.80;
c. per additional 100 NT to 25,000 NT: 0.52 francs;
d. per additional 100 NT over 25,000 NT: CHF 0.26.
The taxable net profit of ship management companies corresponds to 25 percent of the profit determined in accordance with aforementioned scheme.
The taxable net profit is reduced by a maximum of 30 percent if the ship meets certain ecological requirements. In particular with regard to the propulsion system and air and water pollution. The Federal Council will determine the requirements and the amount of the reduction in detail, for which it will take internationally recognized ecological standards into account.
The Federal Tonnage Tax Act for Seagoing Vessels (Tonnage Tax Act) as adopted by the Swiss Federal Council on May 4, 2022 is available in German, French and Italian;
The message regarding the federal tonnage tax law applicable to seagoing vessels is available in German, French and Italian;
The Report on the results of the consultation concerning the federal tonnage tax law applicable to seagoing vessels is available in German, French and Italian;
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