April: CIRCULAR 3A/2002
NEW SPANISH TONNAGE TAX AND OTHER NOVELTIES/NEWNESSES
The National Budget Law and of Accompaniment for year 2002Â which took effect on 1st of January last, includes important legal newness which affect the marine Spanish sector:
TONNAGE TAX
It is a new and special taxability regime for Spanish shipping companies that allows them to pay the Company Tax not applied to the benefits obtained by the company but applied to the tonnage of their fleet. The shipping companies had until the 31st March to formalise, if they so wished, their applications to the new system for the financial year 2002.
ABOLITION OF THE MAXIMUM ANNUAL OVERTIME (supresion del tope anual de horas extraordinarias)
This legal newness which is a consequence of the agreement signed by the Spanish Shipowners Association (ANAVE) and the syndicate for seamen (UGT-MAR) last summer implies that seafarers who enrol vessels listed in the Special Registry of Canarias (REC) will be able to annually perform an unlimited number of overtime (horas extraordinarias), instead of the 80 hours which were presently ruled. The other limitation of working days and non working days will continue to be applicable. Particularly the regime of the three watches is maintained, as opposed to the two in force in the International Law (SOLASÂ and STCW) as in the domestic law of many nearby countries. However, it is expected that by Union Contract, the distribution of the breaks between working days will be more flexible.
STATE BONDS ON VESSELS’ INVESTMENT
A budget of 1,742.94 million Euro (6,500.70 million Ptas.) has been assigned to guarantee investment operations to be allocated on vessels´ acquisition by the shipping companies established in Spain.
NEW PORT TARIFF ON PASSAGE SECURITY
Its purpose is to increase the security/safety in the ports with a general interest and which will affect those companies operating passenger vessels and cargo-passenger vessels. Although the above tariff took effect on 1st of January, it will not be enforced until the Spanish Administration State Ports (Puertos del Estado) endow to various Spanish ports with the necessary human and material means which will have to strengthen security.
Because the new tariff has been created to compensate the cost of the effective increase of the port security, it is expected that the insurance premiums, which had increased following a possible risk after the 11-S, will be sensibly decreased.
NEW RATESÂ ON THE INSPECTION TARIFFS
Section 25 of the Accompaniment Law establishes new rates on the tariffs due to the inspection and control services of the Merchant Marine. Generally and with some qualifications they basically express in Euro the tariffs approved by the Accompaniment Law 2001 Budgets.
NEW PORTS OF AUTONOMOUS GOVERN
The Spanish ports of Ayamonte, Rota, Torrevieja, Vinaroz and Timirajaque will not continue to be of general interest –therefore of State competence- and will be from now on dependent on the Autonomous Communities (Comunidades Autonómicas) to which the city belongs.
BRUSSELS APPROVE THE SPANISH TONNAGE TAX
The European Commission approved on 27th February the new Spanish system on taxability to be applied to shipping companies and which will allow them to choose in paying their taxes according to their tonnage (tonnage tax) instead of applying the general taxability on companies.
The Spanish shipping companies wishing to apply this new regime in the current exercise 2002 had until 31st Mach to formalise their applications. However, only the merchant vessels will have access to the tonnage tax.
