Tax Instruments for Ensuring the International Shipping Development

Abstract

The shipping industry occupies an important place in the economy of many countries, plays a significant role in the development of related industries, creates favorable conditions for the functioning of others and is an element of the formation of economic security and the image of the country. Therefore, many countries use tax incentives to stimulate investment, and the economic crisis has encouraged some of them to increase such incentives. But the availability of tax privileges and special modes is constantly changing. Coupled with a decline in government revenues, an increase in the economic value of multinational companies and various forms of globalization, the OECD countries were forced to reconsider various types of tax regimes that could lead to a low tax rate for companies operating international freight and passenger transport, which also affects tax shipping modes. The largest difference between the shipping industry and other industries is the large degree of its internationalization. This feature creates conditions for the formation of a specific institutional component of the development of navigation, such as tax legislation, which is rapidly changing and requires a detailed study. The article gives an overview of the tax regimes applicable in international shipping, examining the benefits of tax treaties and tax liabilities of non-resident taxpayers whose activities fall under the term "international trade". The general laws are determined and differences in taxation are analyzed for the shipping industry. Three categories of tax regimes are considered: means of taxation of tonnage (in Dutch and Greek models); modes of stimulating the development of navigation (by narrowing the tax base, reducing the tax rate or providing a full tax benefit); favorable tax regimes that do not provide for special exemptions for the shipping industry. It is proposed to reconsider traditional approaches and use new opportunities for the formation of the shipping company's profit, as well as to create more favorable conditions for the operation of shipping companies by increasing tax incentives.