TTM01340 - Introduction to tonnage tax: Tonnage tax profits

Example computation

A company operates the following vessels during the accounting period, year ended 31 December 2013:

Ship	Net Tonnage	Ownership	Days Operated
Oil Tanker	18/12/1988	Owned	365
Parcel Tanker	14583	Time-chartered	180
Supply vessel	310	Finance-leased	365

The tonnage tax profits may be calculated as follows:

	Oil Tanker - Daily profit	Gas Tanker - Daily profit	Supply Vessel - Daily profit
Net Tons	32495	-	14583	-	310	-
0-1,000	10 x 0.60	6	10 x 0.60	6	3 x 0.60	1.8
1,001-10,000	90 x 0.45	40.5	90 x 0.45	40.5	0	0
10,001-25,000	150 x 0.30	45	45 x 0.30	13.5	0	0
>25,000	74 x 0.15	11.1	0	0	0	0
Total Daily Profit	-	102.6	-	60	-	1.8
No of Days	-	365	-	180	-	365
Profit for AP	-	37,449	-	10,800	-	657
CT Profit	-	48,906	-	-	-	-

References

Method of calculation TTM01300

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