697C Calculation of profits of tonnage tax company.
(1) The tonnage tax profits of a tonnage tax company shall be charged to corporation tax in place of the company’s relevant shipping profits.
(2) Where the profits of a tonnage tax company would be relevant shipping income, any loss accruing to the company in respect of its tonnage tax activities or any loss which would, but for this subsection, be taken into account by virtue of section 79 in computing the trading income of the company shall not be brought into account for the purposes of corporation tax.
(3) A company’s tonnage tax profits for an accounting period in respect of each qualifying ship operated by the company shall be calculated in accordance with this section by reference to the net tonnage of each qualifying ship operated by the company and, for this purpose, the net tonnage of a ship shall be rounded down (if necessary) to the nearest multiple of 100 tons.
(4) The daily profit to be attributed to each qualifying ship operated by the company shall be determined by reference to the net tonnage of the ship as follows:
(a) for each 100 tons up to 1,000 tons, €1.00,
(b) for each 100 tons between 1,000 and 10,000 tons, €0.75,
(c) for each 100 tons between 10,000 and 25,000 tons, €0.50, and
(d) for each 100 tons above 25,000 tons, €0.25.
(5) The profit to be attributed to each qualifying ship for the accounting period shall be determined by multiplying the daily profit as determined under subsection (4) by—
(a) the number of days in the accounting period, or
(b) if the ship was operated by the company as a qualifying ship for only part of the period, by the number of days in that part of the accounting period.
(6) The amount of the company’s tonnage tax profits for the accounting period shall be the aggregate of the profit determined in respect of each qualifying ship operated by the company in accordance with subsection (5).
(7) If 2 or more companies are to be regarded as operators of a ship by virtue of a joint interest in the ship, or in an agreement for the use of the ship, the tonnage tax profits of each company shall be calculated as if each were entitled to a share of the profits proportionate to its share of that interest.
(8) If 2 or more companies are to be treated as the operator of a ship otherwise than as mentioned in subsection (7), the tonnage tax profits of each shall be computed as if each were the only operator.