Greek Shipping Firms Unhappy With Tax Regime

by Lorys Charalambous, Tax-News.com, Cyprus

06 September 2017

Tax regime instability has been cited by Greek shipping companies as a reason why they would consider switching to an alternative jurisdiction, according to a report by EY.

The report, "Repositioning Greece as a Global Maritime Capital," found the lack of a stable regulatory regime and tax issues were "by far" the main disadvantages of Greece as a ship-management location. As a result, more than half of those surveyed would consider relocating their ship management functions, with London, Dubai, and Singapore given as the most favored destinations.

The results of the survey show that 69 percent of respondents saw Greece's regulatory environment as a disadvantage, with tax matters cited as a negative factor by 62 percent of respondents.

Most of the respondents (84 percent) also said that the tax framework was their main concern when considering the jurisdiction of relocation.

Specifically, concerns were raised by survey respondents about plans under consideration by the EU Commission to increase the Greek tonnage tax, apply taxation on dividends and tax transfer or inheritance of shares.

The report concluded that "maintaining a stable tax framework and establishing a favorable tax environment for the relocation of expatriates is crucial for strengthening the position of Greece compared to emerging shipping centers."

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