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SCA to move its vessel registration home to Sweden

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SCA to move its vessel registration home to Sweden

January 06, 2020 - 05:59
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SUNDSVALL, Sweden, Jan. 3, 2020 (Press Release) -As a result of the new Swedish tonnage tax system, the SCA Group will be moving its vessel registration home to Sweden. At the turn of the year, a new company, SCA Shipping AB, will be formed.

“Gathering our entire shipping business is a more logical solution,” says Per-Anders Westin, Finance Manager SCA Logistics.

SCA’s shipping operations have been located on the Isle of Man for a number of years; however, some 10 Swedish companies, among them SCA, have applied to the Swedish Tax Agency to move their shipping businesses back home from 1 January. This is the result of a change to taxation regulations for vessel ownership.

“Thanks to the tonnage tax, more shipping companies will be registering here in Sweden instead of abroad,” says Per-Anders.

This change will not result in price rises for customers

In conjunction with this, there will be changes to what are known as Liner Terms and Conditions; however, this will not result in any changes to either administration or the cost to our customers. The tonnage tax system will make it easier to develop maritime-related businesses in Sweden.

“This is positive for Sweden and for the shipping community,” concludes Per-Anders.

The new company’s impact on SCA

The new Shipping company refers to our own RoRo vessels m/v SCA Ortviken, m/v SCA Obbola and m/v SCA Östrand. The chartered container vessels m/v SCA Munksund and m/v SCA Tunadal will not be a part of the new company. From an employment point of view, the shipping company will not have employees on the vessels. There have also been some adjustments for the systems relating to finance, invoicing and transport. All of these are prepared to work in the new shipping company from January 1, 2020.

Facts

The Swedish Government’s stated aim and expectations in establishing the Swedish tonnage tax regime is to increase the Swedish shipping industry’s competitive situation and the proportion of Swedish flagged vessels. Shipping companies will pay corporate income tax on a calculated, standardized income based on the vessel’s net tonnage. Qualified vessels are those primarily used in international shipping or domestic shipping in another country. The tonnage tax is applied in the majority of EU Member States that undertake significant commercial shipping operations. The Swedish tonnage taxation system is voluntary.