Alternative Tonnage Tax Election for Shipping Activities

IRC §1352

Allows qualifying corporations to pay a tax based on the net tonnage of their vessels rather than the standard corporate income tax on actual profits from shipping activities.

Eligibility

Must be a qualifying vessel operator with U.S. flag vessels of at least 6,000 deadweight tons used in U.S. foreign trade.

Frequently Asked Questions

Who is eligible for the Alternative Tonnage Tax Election for Shipping Activities?

Must be a qualifying vessel operator with U.S. flag vessels of at least 6,000 deadweight tons used in U.S. foreign trade.

How does the Alternative Tonnage Tax Election for Shipping Activities work?

Allows qualifying corporations to pay a tax based on the net tonnage of their vessels rather than the standard corporate income tax on actual profits from shipping activities.

What law authorizes the Alternative Tonnage Tax Election for Shipping Activities?

The Alternative Tonnage Tax Election for Shipping Activities is authorized under IRC §1352 of the Internal Revenue Code (Title 26, United States Code).

Statutory Text — IRC §1352

Source: Internal Revenue Code, Title 26, United States Code

§ 1352. Alternative tax on qualifying shipping activities In the case of an electing corporation, the tax imposed by section 11 shall be the amount equal to the sum of—(1) the tax imposed by section 11 determined after the application of this subchapter, and (2) a tax equal to—(A) the highest rate of tax specified in section 11, multiplied by (B) the notional shipping income for the taxable year. (Added Pub. L. 108–357, title II, § 248(a), Oct. 22, 2004, 118 Stat. 1450.) Statutory Notes and Related Subsidiaries Effective DateSection applicable to taxable years beginning after Oct. 22, 2004, see section 248(c) of Pub. L. 108–357, set out as an Effective Date of 2004 Amendments note under section 56 of this title.

Legal Sources

US Code (Official) — 26 USC §1352 → Cornell Law Institute — 26 USC §1352 → Search IRS.gov for IRC §1352 → Treasury Regulations (26 CFR) →

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