Tonnage tax option: prescribed application, approval process, ten year term and ten year re entry bar on default or exclusion.

Companies elect into the tonnage tax scheme by prescribed application to the Joint Commissioner, who may verify eligibility, must provide hearing before refusal, and must issue a written decision within the statutory timeframe. Approval makes the scheme effective from the tax year of election and remains in force for ten years; renewals follow the same procedure. The option ceases if the company ceases to qualify, defaults on compliance obligations, is excluded, or declares withdrawal. Opting out, defaulting, or exclusion triggers a ten year bar on re entry and causes profits from qualifying ships to be computed under other provisions.

---

---

---