Ship Taxation in the Republic of Latvia (Tonnage tax)

Ship Taxation in the Republic of Latvia 

The ships under a Latvian flag are taxed subject to the Latvian tonnage tax which is one of the lowest tonnage tax regimes worldwide and generally has been regarded as one of the lowest ship taxation rates in the world.

The amount of tonnage tax to be paid depends primarily on the tonnage of the vessel and the days the vessel has been carrying out commercial activities.

Tonnage tax rates:

 1) 0.0022 - to the tonnage of up to 1000 tonnage units;

2) 0.0019 - to the tonnage from 1001 to 10 000 tonnage units for the tonnage exceeding 1000 tonnage units;

3) 0.0016 - to the tonnage from 10 001 to 25 000 tonnage units for the tonnage exceeding 10,000 tonnage units;

4) 0.0007 - to the tonnage over 25 000 tonnage units for the tonnage exceeding 25 000 tonnage units.

The tonnage tax rate is calculated based on the tonnage of the vessel multiplied by the aforementioned tonnage tax rate and finally multiplied by the number of days the vessel has carried out commercial activities.

For example: (10’000 GT * 0.0019 rate) * 320 days = EUR 6080 (tonnage tax annually per vessel).

To find out more detailed information please do not hesitate to contact us at valters.gencs@gencs.eu, info@gencs.eu, +371 67240090, with providing information regarding the size, name and IMO number of the vessel.

This article was prepared by Gencs Valters Law Firm -  Maritime Lawyer in Latvia -  Roberts Valpiters who specializes in shipping and maritime law.