TTM03925 - Qualifying companies and ships: flagging - condition 3

FA00/Sch22/Para22A (4)

Condition 3 compares the proportion of the company’s total tonnage that is flagged on the register of a member state with the proportion that was community flagged at the reference date.

If the percentage in condition 2 (TTM03920) that is community flagged is either the same, or has increased since the reference date then the condition does not apply and where that ship is registered does not affect whether or not it is a qualifying ship for Tonnage Tax purposes

For a single company the reference date is the later of:

• 17 January 2004 and
• the last day of the accounting period in which the company became a Tonnage Tax company

Where the company is a member of a Tonnage Tax group then the reference date is the later of:

• 17 January 2004 and
• the last day of the accounting period in which the group became a Tonnage Tax group

References