Relevant shipping profits: Core qualifying activities
Definition of ‘core qualifying activities’
FA00/SCH22/PARA46 provides that a company’s ‘core qualifying activities’ consist of
- activities in operating qualifying ships, and
- other ship-related activities that are a necessary and integral part of the business of operating those qualifying ships.
Operation of the ship is defined by FA00/SCH22/PARA18 in terms of ownership and charter, but to be qualifying the ship must, under PARA19 (1), be used for
- transport of passengers or cargo by sea,
- towage salvage or other marine assistance carried out at sea, or
- transport in connection with other services of a kind necessarily provided at sea.
‘Necessary and integral’
Activities are a ‘necessary and integral part of the business’ if they are essential to enable the ship operation to take place. Thus the definition will encompass:
- ship management operations, such as purchasing fuel and hiring crew, and
- commercial management operations such as booking cargo.
Activities not included
The definition of ‘core qualifying activities’ will not include every ship-related activity that a company may carry on. In particular, the definition does not cover:
- activities that are merely customary or desirable
- activities carried out on behalf of other companies in the same tonnage tax group
|FA00/SCH22/PARA46 (core qualifying activities)||TTM17271|
|Examples of core qualifying activities||TTM06060|
|Liner conferences and pooling||TTM15210|