June 20, 2012

Planning and Research Department, Japan Marine Center

Comparison Chart of Maritime Policies

Japan Korea China Denmark Norway Sweden

• All crew must be Japanese. • All crew must be Korean. • All crew must be Chinese. • No nationality requirements. • No nationality requirements • No nationality
Manning requirements of • However, for ratings, a maximum of 6 • Foreign crew members are • Officers must hold Danish except for a captain. requirements except for a
registered vessels foreigners are accepted. accepted upon approval of Certificates. • A captain must have EU/EEA captain.
(principles) the Ministry of Transport. nationality or Norwegian work • A captain must have
(No actual cases) permit. EU/EEA nationality.
International Ship Register System International Ship Register System None Danish International Ship Norwegian International Ship None
1. Requirements for registration 1. Requirements for registration Register System (DIS) Register System (NIS)
(1) Eligible Owner (1) Eligible Owner 1. Requirements for registration 1. Requirements for registration
• Any person who has Japanese nationality • Any person who has Korean nationality (1) Eligible Owner (1) Eligible Owner
• Any juridical person or body established in • Any corporation established in accordance ・Any person who has Danish ・Any person who has Norwegian
accordance with the Acts of Japan with the Acts of Korea nationality nationality
(2)Type of vessels eligible for registration • Any juridical person, of which main office is ・Corporation operated by a Danish ・Foreign individual who appoint
• Vessels of 2,000 gross tons or over located in Korea and the representatives are who lives in Denmark Norwegian as representative
• Vessels which navigate in the Ocean Going nationals of Korea ・Part-owner shipping undertakings ・Foreign corporation ,whose ship
Area or the Greater Coasting Area (2)Type of vessels eligible for registration of which no less than two-thirds management is conducted in
• Vessels owned by any eligible owner are owned by Danish nationals Norway
(However, foreign ships chartered by and the managing owners of (2) Type of vessels eligible for
international transport enterprises on which are Danish and resident registration
condition that those ships shall obtain in Denmark. ・Vessels of 15 meters length or
Korean nationality after expiration of a ・A foreign company which is more, and self-propelled.
certain contract period, so called “BBC/HP controlled significantly by ・Vessels engaged in International
Second Ship Register ships”, can be registered) Danish nationals or companies, voyages.
System (International • Vessels of 500gross tons or over or which has appointed a
Ship Register System • Vessels of 20 years of age or under representative in Denmark who
etc.) is responsible for ensuring that
Jeju Special Shipping Registration the obligations under DIS are
1. Requirements for registration discharged.
(1) Eligible Owner (2) Type of vessels eligible for
• Identical with the Eligible Owner in 1.(1) of registration
International Ship Register System ・Vessels of 20 gross tonnage or
(2)Type of vessels eligible for registration over.
• Vessels registered on the International Ship ・Vessels engaged in International
Registry, of which the port of registry is in voyages.
the Jeju Self-Governing Province
(However, for BBC/HP ships, ships
registered on the International Ship
Registry, of which the future planned port
of registry is in the Jeju Self-Governing
Province are eligible)

1
 June 20, 2012
Planning and Research Department, Japan Marine Center

2. Effects 2. Effects 2. Effects 2. Effects

(1) (1) (1) Manning:①A captain must (1) Manning: 1) A captain must
Non- Int’l Jeju have Danish or EU/EEA have Norwegian nationality;
Non- nationality; provided however, provided however, that a captain
International Int’l Ships Registered
International that a captain of non-EU/EEA of non-Norwegian who has
Ships Ships Ships
Ships nationality who is employed by a completed a Norwegian
Tax for rural
Fixed assets tax basis × tax basis × ○ ○ ×
development Danish shipping company can be legislation course can be
tax 1/6 1/15 accepted upon approval by an accepted upon approval by an
Registration
Registration ○ ○ ○ authority concerned. ② authority concerned.
4/1000 of 3.5/1000 of tax
and license Approved foreign seafarers can (2) Wages: Foreign seafarers may
ship’s value ship’s value Property
tax be accepted. be employed at the same level of
acquisition ○ × ×
Nationality No (2) Wages: Foreign seafarers may wages as in their own countries.
Japanese tax
requirements nationality be employed at the same level of (3) Others: International Ships are
only Property tax ○ △ ×
for Manning requirements wages as in their own countries. not allowed to be engaged in
Local
education ○ ○ × (3) Others: International Ships are domestic shipping.
(2) Wages: － not allowed to be engaged in
tax
(3) Others: In principle, International Ships domestic shipping.
Area
are not allowed to be engaged in domestic
resources
shipping ○ × ×
and facilities
tax
Manning
A B B
requirements
Note 1:
○: levied; △: half exempted; ×: exempted
Note 2:
A: maximum 6 foreigners accepted but for ratings
only
B: foreigners accepted except for captain and chief
engineer

(2) Wages: Foreign seafarers may be

employed at the wages provided in the
collective labor agreement between the
Ocean-Going Transport Enterprises’
Association and the Federation of Seamen’s
Union
(3) Others: In principle, International Ships
are not allowed to be engaged in domestic
shipping

2
 June 20, 2012
Planning and Research Department, Japan Marine Center

• Implemented in fiscal 2009. • Implemented in 2005. None • Implemented in 2001. • Implemented in 2007. None
• Lock-in period: 5 years, selection change is • Lock-in period: 5 years, selection change is • Lock-in period: 10 years, a • Lock-in period: none.
not allowed. not allowed. selection change is not allowed. However, in cases when a
• Taxable revenues: revenues earned by • Taxable revenues: revenues from • Taxable revenues: revenues from company changes selection from
Japan-registered vessels. international shipping and related activities, maritime and its closely related tonnage tax to
• Chartered vessels ratio: None. including revenues from currency-exchange activities such as freight charges, regular-corporation tax ,
• Calculation: levied by net tonnage × rate differences. charter fees, and ship sales reselection of tonnage tax is not
deemed revenue* ×number of operating • Eligible corporations: corporations whose income. allowed for 10 years after the
days. total annual operating tonnage of chartered • Chartered vessels ratio: tonnage initial selection of tonnage tax.
*Deemed revenue (per day per 100 net ton): vessels is less than 5 times the annual of time-chartered vessels should • Taxable revenues: Revenues from
operating tonnage of its base vessels not exceed 4 times the tonnage maritime and its closely related
up to 1,000 NT 120 yen/100 NT (owned vessels, etc.). of owned and bare-chartered activities such as freight charges,
• Calculation: levied by net tonnage × deemed vessels. charter fees, and ship sales
1,001–10,000 NT 90 yen/100 NT revenue* × number of operating days. (Tonnage tax can be applied to income.
10,001–25,000 NT 60 yen/100 NT * Deemed revenue (per day per100 net ton): time-chartered vessels up to 4 • Chartered vessels ratio: None
times the tonnage of owned and • Calculation: levied on the vessels
25,001 NT and up 30 yen/100 NT 1,400 won bare-chartered vessels.) owned and/or operated,
up to 1,000 NT • Calculation: levied on the vessels according to net tonnage × tax
(98 yen)/100NT
owned and/or operated, amount* × vessel’s number of
1,100 won according to net tonnage × operating days. Tax amounts are
1,001–10,000 NT
(77 yen)/100NT deemed revenue* × number of decided annually at Parliament.
Tonnage tax
700 won days of ownership or charter * Tax amount (per day per 100 net
10,001–25,000 NT contract (not days of actual tons):
(49 yen)/100NT
operation)
400 won up to
25,001 NT and up * Deemed revenue (per day per No tax
(28 yen)/100NT 1,000 NT
100 net tons):
1,001–
Note: The table above shows the amount of 1.8 NOK (25.34
10,000
“deemed revenues” per “100 NT” for up to 1,000 8.97 DKK (127.5 yen)/100 NT
NT
comparison with the other countries, NT yen)/100 NT
10,001–
although the national legislation provides it 1,001– 6.44 DKK (91.5 1.2 NOK (16.7
25,000
per “1 NT.” 10,000 NT yen)/100 NT yen)/100 NT
NT
10,001– 3.85 DKK (54.7
25,001
25,000 NT yen)/100 NT 0.66 NOK (8.45
NT and
25,001 NT 2.53 DKK (40.0 yen)/100 NT
up
and up yen)/100 NT
Note: The table above shows the
tax amount per “100 NT” for
comparison with the other
countries, although the national
legislation provides it per
“1,000NT.”

Nothing in particular Nothing in particular • Exemption of customs duty Nothing in particular Nothing in particular Nothing in particular
and value-added tax under
certain conditions in case
Chinese-funded ships flying
foreign flags are
re-registered in China.
Other measures for
(Implemented in 2007 and
taxation
applied until the end of
2015.)
• 3% business tax imposed on
revenues is waived for
international transportation
services, including
international shipping.

3
 June 20, 2012
Planning and Research Department, Japan Marine Center

Deduction from taxable income Deduction from taxable income Deduction from taxable Deduction from taxable income Deduction from taxable income Deduction from taxable
None • Coverage: those working away from Korea income • Coverage: those who are Danish • Coverage: those who are income
on international ships and deep-sea fishing • Coverage: seafarers residents. Norwegian residents. • Coverage: those who are
vessels. employed for international • Conditions by type of vessels: • Conditions by type of vessels: Swedish residents.
• Conditions by type of vessels: vessels shipping those registered in Denmark, NIS ships, Norwegian ships • Conditions by type of
employed for international shipping and • Conditions by type of excluding DIS ships, that are not engaged in international shipping, vessels: EU/EEA
deep-sea fishing vessels: none used for certain forms of etc. flaggedmerchant ships,
• Others: deductible amount is 1.5 million • Others: deductible amount is shipping such as short distances. • Others: deductible amount is passenger ships, or ships
won (105,000 yen) per month. In cases of 1,300 yuan (16,471 yen) per • Others: deductible amount is 80,000 NOK (1,126,400 yen) per used for commercial
limited-period employment and employment month 56,900 DKK (808,549 yen) per year or 30% of annual gross shipping purposes
termination in the middle of a month, the year. In cases of limited-period income, whichever is smaller. In • Others: deductible
amount is reduced based on the number of employment and employment cases of limited-period amount is 36,000 SEK
days worked. termination in the middle of a employment and employment (431,640 yen) per year
year, the amount is reduced based termination in the middle of a for merchant ships,
on the number of days worked. year, the amount is reduced based 35,000 SEK (419,650
Non-taxable income (onboard daily on the number of days worked. yen) per year for
allowance) passenger ships. *
• Coverage: Members of seamen’s union
• Conditions by type of vessels: vessels Tax deduction
employed for international shipping, • Coverage and conditions
domestic shipping, and a certain type of by type of vessels: same
fishing vessels: as in the above.
• Others: “Daily allowance” paid to a • Others: deduction
seafarer on board (amount decided in a amount: 14,000 SEK
Exemption and reduction
collective labor agreement) is non-taxable. (167,860 yen) per year
of income tax for
for merchant ships, 9,000
seafarers
SEK (107,910 yen) per
year for passenger ships.
*

* In cases of limited-period
employment and
employment termination
in the middle of a year,
amount is reduced based
on the number of days
worked.

Tax exemption
• Coverage: those who are
Swedish residents
employed in EU/EEA
countries and who work
onboard for over 183
days per year.
• Conditions by type of
vessels: oceangoing ships
with foreign registration.
•Others: Income earned on
board is exempted from
income tax.
Reduction of seafarers’ None None None None None None
social security insurance
premium

4
 June 20, 2012
Planning and Research Department, Japan Marine Center

None None None • 50% coverage of returning cost None None

in cases where a domestic
Support to seafarers’ resident seafarers worked for 6
dispatch and return costs months or more on the same ship,
or on ships under the same
owner, that have not called on
home ports in the past 3 months.
Regulated Regulated Regulated No special regulations No special regulations Regulated
Exceptions Exceptions Exceptions Exceptions:
• 1) in cases provided otherwise by law or • 1) in cases provided otherwise by law or •in case when mutually agreed ①EU-flagged vessels; ②
treaties (Agreement under Article VI of the treaties, 2) in case the purpose is to avoid between 2 countries; (No In cases where mutually
Treaty of Mutual Cooperation and Security marine accidents, etc., 3) in cases the actual cases.) agreed between countries;
between Japan and the United States of Minister of Land, Transport, and Maritime ③In cases
America, regarding Facilities and Areas Affairs provides special permission. Swedish-flagged vessels
and the Status of United States Armed • Relieved in specified sea routes are not available .
Forces in Japan), 2) in case the purpose is (Busan–Incheon, Busan–Kuwangyang).
Cabotage (allowance of
to avoid marine accidents, etc., 3) in cases • BBC/HP are treated in the same way as
domestic shipping to
the Minister of Land, Infrastructure, ships registered to Korea.
ships registered in
Transport, and Tourism provides special
foreign countries)
permission.
• Example: Based on special permission by
the Minister of Land, Infrastructure,
Transport, and Tourism, foreign-registered
vessels operated by Japanese shipping
companies may carry cargo manifactured
by the companies located in Okinawa
Prefecture’s Special Free Trade Zone or
Free Trade Zone between those zones and
Mainland Japan.
• Special treatment of depreciation: for None None • Extra depreciation for newly built None None
low-environmental-impact vessels, in cases ships: limited to the initial year of
of Japanese flagged vessels, additional rate a newly built ship, a depreciation
of 18% and in cases of foreign flagged ratio of 20% can be applied,
vessels, additional rate of 16%, over base which is ordinally 12%.
rate may be allowed. • Special tax treatment for
e.g.: In case where the useful life of a replacement of a vessel: when a
Exceptional measures on
vessel is 15 years; when the declining ship is purchased in the same or
depreciation and special
balance method 200% is used , the the following fiscal year as
exceptions for
depreciation rate is 31.33% (18% being another ship’s sale, taxation on
replacement of vessels
added to the base rate of 13.33%) in case of the gain on sale can be deferred.
Japanese flagged vessels, 29.33% (16%
being added to the base rate of 13.33%) in
case of foreign flagged vessels.
• Special tax treatment for replacement of
a vessel: at the point of sale of a vessel and
purchase of replacement vessel, taxation on
80% of the gain on sale can be deferred.

5
 June 20, 2012
Planning and Research Department, Japan Marine Center

None None None • Coverage: those who are Danish • Coverage: Same as those in the None
residents. deduction from taxable income
• Covered ships: DIS ships. scheme.
• Subsidy amount: a shipping • Covered ships: Norwegian ships
company does not have to pay engaged in international
income tax withheld for a navigation or navigation between
covered seafarer and can retain it. ports that are 300 or more
nautical miles apart.
Net wage system • Subsidy amount: the amount of a
for seafarers’ seafarers’ income tax and
eanings national insurance premium, up
to the amount of 198,000 NOK
(2,787,840 yen) per seafarer
employed, is to be
Other maritime-related support policies

granted/refunded to a shipping
company.

None None None • Coverage: those who satisfy all Maritime subsidy
the following requirements: ① ・Coverage: Swedish
Employment support for national an EU/EEA national or seafarers on
essential fleet Norwegian resident; ② on Swedish-flagged vessels.
• When a ship is designated as a board ships for 130 or more days • Conditions by type of
national essential ship, which may be in a calendar year or regularly vessels: those registered
requisitioned in emergency situations, employed by a shipping in Sweden.
and for which number of foreign crew company; ③ joins the ・Others: the amount of a
Support for
members is restricted, the government Norwegian national insurance portion of seafarers’
employment
subsidizes the amount of difference scheme. income tax and social
costs
between the employment costs of ・Conditions by type of vessels: welfare is to be
Korean seafarers who is required to hire NIS-registered ships or subsidized to a employer.
due to such restriction and the estimated NOR-registered ships.
employment costs of foreign seafarers. ・Others: the amount of 12.1% of
covered seafarers’ wages in a
case of NOR ships (9.3% of those
in a case of NIS ships) is to be
subsidized to a employer.
Exceptions on None • For dividends from ship investment None None None None
taxation on companies, tax is levied as separate taxation
dividend from at 5% rate if the investment is within 300
ship investment million won.
companies
Number of vessels: 5,619 Number of vessels: 2,916 China (DAS) (NOS) Number of vessels: 452
G/T: 17,423,229 G/T: 12,083,742 Number of vessels: 4,148 Number of vessels: 279 Number of vessels: 1,469 G/T: 3,369,262
Basic data relating to

G/T: 37,924,243 G/T: 185,474 G/T: 2,618,195

Registered
maritime policies

vessels1
Hong Kong (China) (DIS) (NIS)
Number of vessels: 1,935 Number of vessels: 534 Number of vessels: 535
G/T: 70,205,767 G/T: 11,416,132 G/T: 13,893,715
Container movement volume: Container movement volume: Container movement volume: Container movement
Container movement volume: 11,707,337
Container movement volume: 9,633,648 TEU 42,309,287 TEU 482,024 TEU 509,763 TEU volume: 1,002,603 TEU
Ocean trade TEU
volume etc. 2
Ocean trade volume: 75,214,281 tons
Ocean trade volume: Ocean trade volume: 15,893,388 Ocean trade volume: 24,951,213 Ocean trade volume:
Ocean trade volume: 923,062,959 tons
1,987,998,703 tons tons tons 35,300,381 tons
- Currency exchange rates in the charts are as of February 21, 2012 (1 won = 0.07 yen, 1 yuan = 12.67 yen, 1 DKK = 14.21 yen, 1 NOK = 14.08 yen,1 SEK = 11.99 yen).
Notes 1. Prepared by JMC based on IHS Fairplay data (merchant vessels of 100 gross tons or more).
2. Prepared by JMC based on IHS Global Insight data.