Tag Archives: french

25% YES OR NOT?

Sanremo, 14th April 2019

25% YES OR NOT?

The French Customs Office has released important dispositions and clarifications about yachts engaged in commercial and transport activities (e.g. charter).

25% DUTY TO APPLY TO US BUILT BOATS

The French Customs Office confirms that every US built boat having commercial registration and officially imported in European Community before the 22nd of June 2018 will be exempt from the payment of the 25% customs duty on the boat’s return in Europe if all the standard import formalities will be executed (the same formalities and practices arranged before the 25% rule).

The same principle applies for boats exported from EU before the same date (Export Declaration is required. In absence of this Declaration an alternative proof of exportation has to be provided).

All the boats having completed the import back to the European Community can benefit from FCE/ICE (French Commercial Exemption / Italian Commercial Exemption) advantages according to the +70% rule.

If the boat has been imported under the FCE/ICE regime in 2018, it is still required to provide the proofs attesting its qualifications to take advantage of the same benefits (+70% international voyages).

Therefore, we confirm that any and all US built boats falling within the below listed cases:

1. never imported before the 22nd of June 2018, or

2. imported before the same date but having changed the Owning Company (sold/purchased)

are subject to the application of the 25% customs duty.

CHARTER UNDER TEMPORARY ADMISSION STATUS

Besides, all US built boats never imported before the 22nd of June 2018 will have the possibility to perform commercial activities (Charter) under Temporary Admission status, whether the boat is registered as commercial or private (in the latter case only if the Flag Registry admits this condition).

However, there are specific restrictions to the above frame:

a. the impossibility to have EU resident Charterers

b. at present not all the EU Members States still permit a boat under Temporary Admission to execute commercial activities (Charter).

In regards to non US built boats (EU or non-EU) registered as commercial and to coming to Europe to execute commercial activities (Charter), which are under “Import Status”, the FCE/ICE benefits apply to all those non-EU boats (as well as to some EU boats in specific cases: more info will follow) intending to execute commercial activities (Charter). This is the only case in which the Charterer can be a EU resident.

Concerning the non-EU boats which will not be imported (both Commercial and Private registered), they will only have the possibility to execute Charters under the regime of Temporary Admission and will not be entitled to charter to EU resident subjects.

As far as is concerned to side boats (chase-boats/tenders) having own registration and which are employed to attend the mother ship (main vessel), we are still waiting for the necessary clarifications by the Customs about the possibility to charter said chase boats to EU residents.

All the hereby listed rules and information provided might be subject to variations by the Customs Office.

Therefore please always contact us to know if something has been changed, integrated or just updated.

For any additional info or clarifications required please email us to info@yachtwelfare.it

You can download the complete version of this news below:

YW_News_19_12_04Scarica

Withhold Tax 33% in France

Withholding tax on charter revenues: has this battle been definitively won? As you may have heard MYBA and ECPY members have recently been subjected to French tax inspections in their capacity as Stakeholders. In compliance with Article 182B of the French General Tax Code, French Fiscal Authorities wanted to apply a 33% withholding tax on charter funds held by Stakeholders based in France, in relation to the commercialactivity (charters) made into the French territory and territorial waters. The withholding would apply when charter funds were transferred to Owning Companies or Yacht Owners which did not have a permanent professional establishment (business) in France and were based in jurisdiction which did not have a double tax treaty with France.
MYBA and ECPY decided to seek the official position of the tax authorities at the ‘Direction de la Législation Fiscale (DLF) in Paris. They asserted that Stakeholders are only intermediaries of on charter revenues realised in France and not the debtors.
The first reply was unfavourable but MYBA and ECPY lodged an appeal for a second interpretation by the National College. The DLF has now replied favourably, indicating that “the Stakeholder is not liable to pay the withholding tax provided for under Article 182 B of the General Tax Code”.
This is of course a great success but this is only the first stage, as now MYBA and ECPY need to ensure that this national decision is implemented at local level for the ongoing cases.
But when the battle is won at local levels are the tax authorities going to accept defeat or are they going to try to find a new debtor?
There’s still plenty of grey areas around this … stay tuned, we will release up-to-date news as soon as possible.

For any additional info or questions needed please email us to info@yachtwelfare.it.
We are always at your disposal.

New French Social Security Laws

The French government has recently enacted a decree that states a new requirement for social security payments for all non-French seafarers (crew) based in France unless they are already paying for social security (national insurance) in another EU member state, or in any other national state that has an existing bilateral social security treaty with France.
This decree will come into force on 1st July 2017 and will apply to all seafarers resident or otherwise domiciled in France irrespective of whether their vessel (yacht) is private or commercially operated.

Please find links below to download an initial summary of the key points of the new French social security legislation, and two flow charts to help clarify the regulation. This information was prepared and released by Lesia Employment Services ICC Limited (Lesia) in conjunction with a major maritime law firm.

Lesia Summary on Social Charges
Employers’ social security obligations in Franceregarding crew members
Social security obligations of seafarers living in France and notworking on a French flagged vessel

Thanks to www.pya.org