Following its decision on the 19 December 2017, the European
Commission conditionally endorsed the Maltese tonnage tax scheme
under the EU's State aid rules for a period of ten years. The
stated goal is to have a tonnage tax scheme that "will ensure
a level playing field between Maltese and other European shipping
companies, and will encourage ship registration in
Europe."
In observance of the Commission's decision of December 2017,
Malta has by virtue of Legal Notices 127 and 128 of 2018 (effective
1 May 2018) revisited and amended its tonnage tax law. The new law
published on the 13 of April 2018 is being regarded as a positive
development by the EU, Malta and the industry. The said legal
notices strive to ensure compatibility between the Maltese tonnage
tax scheme and EU State Aid rules. This will serve to create
certainty in the market and ensure the attractiveness of the Malta
Flag to the shipping industry.
