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Saatja: Rene Arikas <[email protected]> Saadetud: 09.01.2020 08:38 Adressaat: Merli Tasane <[email protected]> Teema: Ed: Vessel Registration Enquiry Manused: image001.png From: Eero Naaber Sent: Wednesday, January 8, 2020 4:55 PM To: '[email protected]' <[email protected]> Subject: RE: Vessel Registration Enquiry Dear Mr. Papazoglou, Thank you for your enquiry, which was forwarded to us from Estonian Embassy in Greece! First of all we would like to mention that Estonian flag is on ParisMoU White list. But we have to comment also that current tax liabilities are rather inconvenient to ship owners, adding 50-60% to total crew cost. Therefore we suggest we concentrate in our discussion to tax and ship registration changes as of 1st of July 2020 - date when amendments to legislation take effect and new much more favorable conditions apply. Below are conditions applying as of 1st of July 2020 in Estonian Bareboat Ship Register (we currently assume that you are considering bareboating your ship to Estonia). Cargo vessel has to be 500GT or bigger and be engaged in international trade in order to qualify to below conditions. Ship Register fee in Second Bareboat Ship Register If the ISM manager is situated outside of Estonia, the fee is divided into three categories as per the ship?s size and is charged on annual pre-paid lump sum basis. Estonian Maritime Administration provides following services for the annual lump sum payment: 1. ISM audits (DoC and SMC), excluding travel costs; 2. MLC survey, excluding travel costs; 3. ISPS survey, excluding travel costs; 4. Issuance and dispatch of the ship certificates by registered mail related to above; 5. Issuance and dispatch of crew members certificates? endorsements by registered mail; 6. Ship registration Annual lump sum fee: 1. Ship below 5000 GT: 15 000 euros annually; 2. Ship between 5000 GT ? 19 999 GT: 20 000 euros annually; 3. Ship of 20 000 GT and more: 25 000 euros annually. Ship Register fee in First Bareboat Ship Register In case you opt to relocate your ship management (ISM management) to Estonia, then you will be entitled to reduced Ship Register fees, which are calculated per each service separately. Fees depend of the ship?s size but average annual cost on 5 year basis is around 3000 ? 5000 euros. Corporate tax In case you opt to relocate your ship management to Estonia, you will be able to benefit from Estonia?s favorable corporate tax environment. Option 1: company?s profits are not taxed annually. Profits are only taxed with 20% once profits are distributed. Meaning, if company reinvests the profits back to the company, no corporate tax is payable. Option 2: ship management company can opt for the tonnage system. Tonnage tax levels are on European average scale. No dividend tax applies. Crew members taxation Income tax: 0% Pension tax: 20% on 750 euros tax base per seafarer. Payable for each seafarer regardless of nationality or residence. Meaning, the actual salary is not taken into account when calculating the tax obligation. All calculations are based on 750 euros tax base and therefore the amount is equal for each seafarer. Unemployment tax: 2,4% on 750 euros tax base per seafarer. Payable for residents of EEA only, third country residents are excluded. There will be no nationality restrictions under Estonian flag, expect for the cases when ship is trading on regular voyages to or from an Estonian port. In this case the master has to be an EEA national. In case of any questions, please do not hesitate to ask. PS in continuous effort to improve our customer service, we would appreciate you letting us know on which contact (e-mail, telephone) you tried to reach us. Best regards, Eero Naaber Head of Development and Innovation Estonian Maritime Administration Tel.: +372 6205 534 Mob.: +372 51 74771 E-mail: [email protected] From: Konstantinos Papazoglou / Octo Maritime S.A. <[email protected]> Sent: Wednesday, January 8, 2020 1:10 PM To: Estonian Embassy in Athens <[email protected]> Subject: Vessel Registration Enquiry Dear Sir/Madam, I am contacting you on behalf of Octo Maritime S.A. we are ship management company based in Greece and we are currently evaluating changing the flag of one of our cargo vessels to an EU flag. We would like to come into contact with the relevant person/agency that could inform us of the requirements, obligations, cost etc of registering a vessel with the Estonian flag. I have made an effort to contact the Estonian Maritime Administration but haven?t been able to reach them. I would appreciate if you could bring me in contact with relevant agency, please also feel free to contact me if you require any further information. Kind Regards, OCTO MARITIME S.A. Konstantinos Papazoglou 53 ? 55 Akti Miaouli, 18536 Piraeus, Greece M +30 6942461829, [email protected]