Taxes Consolidation Act 1997 section 697A

Interpretation

Section 697A defines the key terms used in Part 24A and Schedule 18B in relation to tonnage tax, a regime under which qualifying shipping companies may elect to have their corporation tax calculated on notional profits based on the tonnage of their ships rather than on actual profits.

• A qualifying company is one within the charge to corporation tax which operates qualifying ships and carries on the strategic and commercial management of those ships in the State; a qualifying ship is a certified seagoing vessel of 100 tons or more gross tonnage, excluding fishing vessels, sport or recreation vessels, ferries, offshore installations, petroleum tankers, dredgers and non-ocean-going tugs.
• Relevant shipping income covers income from passenger and cargo transport by sea, towage and salvage, ancillary on-board services, chartering out under retained control, ship management services, qualifying overseas dividends, and other activities that are a necessary and integral part of the company's shipping business.
• A tonnage tax company or tonnage tax group is a qualifying company or qualifying group in relation to which a tonnage tax election has effect; tonnage tax profits are the company's profits for an accounting period calculated under section 697C, and the tonnage tax trade is ring-fenced as a separate trade.
• A vessel cannot be a qualifying ship if its main purpose is to provide goods or services of a kind normally provided on land; references to entering, leaving, or being subject to tonnage tax are to becoming, ceasing to be, or being entitled to calculate profits as, a tonnage tax company or group.