100% wage tax relief for German flag decided

On 28. January the Finance Committee of the German Bundestag adopted the increase of the wage tax deduction for seafarers on German-flagged ships from 40% to 100%. Just one day later the Federal Council (Bundesrat) agreed to the relief for shipowners regarding wage tax.

With this law the so called 183-days-regulation will also be canceled. Shipowners will not have to pay wage tax for those seafarers who have been employed for less than 183 days. The justification of the law states that the elimination of this regulation reduces the administrative effort and increases the flexibility of shipping companies in regards to manning the ships (Bundestags-Drucksache 18-7268). The law was first introduced by the Federal Council (Bundesrat).

The law will come into force after the necessary state aid approval of the EU Commission and will at first be limited to five years to allow for an evaluation after this period.

This law is supposed to ensure the nautical know-how for the maritime economy and especially the employment of seafarers on ships under German flag.

The plenary debate at the German Bundestag regarding this law was recorded on Parlamentsfernsehen (Parliament TV).