Incentive Data

Income tax exemption up to 2030 on the income of Ships and other floating crafts.

Income Tax exemption on income of Ships and all floating crafts including tugs, dredgers, survey vessels and other specialized craft purchased or bareboat chartered by a Pakistan entity and flying Pakistani flag shall be exempt upto 2030 from payment of income tax, but in lieu pay:

  1. PNSC will continue to pay tonnage tax of US$ 1.00 per GRT annually on its shipping income.
  2. New Pakistan Resident Ship Owning companies will be incentivized and pay tonnage tax of US $ 0.75 per GRT annually for the first five years of the shipping operations of each individual vessel inducted by them subject to the cut-off period i.e. till 2030. After five years the Pakistan Resident Ship Owning companies shall pay US$ 1.00 per GRT annually on the said vessels shipping operations income.

Sources:

  1. Chapter II - Section 7a of Income Tax Ordinance 2001