Tonnage income scheme: prescribed formula and eligibility rules define taxable profits and operating conditions for qualifying ship operators.

Taxable profits from operating a qualifying ship are computed by a tonnage income formula: total tonnage income plus specified aggregate amounts less prior-year negative profit. Daily tonnage income is fixed by net tonnage bands and multiplied by operating days; negative results render profits nil. Eligibility criteria for qualifying ships and qualifying shipping companies, limitations on incidental activities, treatment of bareboat charters, successor carryforward of negative profits, and assumptions regarding allowances, depreciation and cost allocation are prescribed, with rulemaking powers to regulate scheme participation and prevent abuse.

---

---

---