TTM05250 - The 75% limit on charters-in: How to calculate

Example 4: Ships operated for varying periods during accounting period

A group has five tonnage tax companies. For the year ended 31/12/2003 the representative company summarises the ships operated as:

Company	Ship	Control	No. of days	Net tonnage
Company 1	Bulk 1	Finance leased	365	11000
Company 2	Bulk 2	Owned	365	2800
-	Bulk 3	Owned & bareboat chartered out to 3rd party (long term)	30/12/1900	22500
-	Bulk 4	Owned	365	22500
-	Bulk 1	5 year time charter from Co 1	365	11000
Company 3	Bulk 5	3 year time charter	365	21000
Company 4	Reefer 1	Owned	365	7500
-	Reefer 2	Owned	365	4200
Company 5	Bulk 6	35 day voyage charter	35	22500
-	Reefer 3	60 day voyage charter	65	8100
-	Bulk 7	47 day voyage charter	47	24000

The ton-days should be calculated for each ship and apportioned between owned and bareboat chartered vessels and those time or voyage chartered-in. Where a vessel is chartered within a group, it should only be counted at its highest level of control. Non-qualifying vessels should be disregarded.

Ship	Net tonnage	No. of days	Ton-Days	Ton-Days Owned	Ton-Days Chartered-in
Bulk 1	11000	365	4015000	4015000	0
Bulk 2	2800	365	1022000	1022000	0
Bulk 3*	22500	365	0	0	0
Bulk 4	22500	365	8212500	8212500	0
Bulk 1**	11000	365	0	0	0
Bulk 5	21000	365	7665000	0	7665000
Reefer 1	7500	365	2737500	2737500	0
Reefer 2	4200	365	1533000	1533000	0
Bulk 6	22500	35	7875000	0	7875000
Reefer 3	8100	65	526500	0	526500
Bulk 7	24000	47	1128000	0	1128000
Totals	-	-	34,714,500	17,520,000	17,194,500

* Bareboat charter-out makes Bulk 3 a non-qualifying ship, which is disregarded

** Bulk 1 has been chartered intra-group, so is also disregarded.

So the percentage is 17,194,500/34,714,500 x 100 = 49.5 (below the 75% limit).

References

Reference	Link
How to calculate 75% limit	TTM05200