the Home to leading maritime companies 01 02 03 04 05 06 Gateway to Europe table of contents Page 06 - 07 Let us guide you through this brochure 01 A long and distinguished maritime history Page 08 - 09 02 An excellent business climate Page 10 - 13 03 A competitive shipping policy Page 14 - 15 04 A vast maritime infrastructure Page 16 - 19 05 A highly skilled workforce Page 20 - 23 06 Efficient and flexible manning Page 24 - 27 07 A favourable maritime tax climate Page 28 - 33 08 Top of the “ List“ ranking Page 34 - 37 09 Pioneers in sustainability Page 38 - 39 10 Addresses Page 40 - 43 Come fly the Dutch with us!

It is my pleasure to introduce this brochure about the maritime business climate in The Netherlands. It provides you with information about the Dutch maritime cluster and about the benefits and opportunities involved in flying the Dutch flag.

The Netherlands has always been a strong maritime nation. Because of its central location in Europe at the river Rhine estuary, it serves as the entrance to Europe’s economic heartland. Nowhere else in Europe can one find such an excellent and convenient combination of large ports and efficient hinterland connections of all transport modes. Together with the much experienced Dutch logistical sector, one of the most modern and innovative in the world, the Netherlands is the true Gateway to Europe.

The Dutch maritime cluster consists of many different subsectors, e.g. dredging, deepsea-, short sea, inland- and recreational shipping, pelagic fishing, maritime supply, offshore, dredging, shipbuilding, maritime research, hydraulic engineering and maritime services. All the subsectors are closely related and reinforce each other. The maritime cluster is strong from an economic, technological and innovative perspective. It consists of some 12,000 companies and has an added value of more than USD 15 billion a year.

The Netherlands offers an excellent business climate, which allows maritime businesses to flourish. The economic and social climate is stable, and in technical and commercial terms, the maritime sector is highly advanced. The government has created ideal conditions for the further development of maritime know-how. Logistics is one of the top sectors with gained additional focus from the Dutch government.

The Dutch shipping sector and the maritime cluster contribute to the competitiveness of Mainport Rotterdam – the largest port in Europe. The port attracts more than 400 million tonnes in cargo flow each year. It is of great importance to the Dutch economy and formes a port network with the other ports in the country of which the Port of Amsterdam is the largest.

The Dutch shipping register includes around 900 merchant vessels. The Dutch fleet is one of the most modern fleets in the world; it is highly innovative, it has well-educated crews and offers good employment conditions. Dutch shipping policy has been designed by the government with the goal to enable shipowners to manage their vessels from the Netherlands on competitive and profitable terms. It sets to create a level playing field and to retain a high-quality reputation and strong maritime environment for its shipowners. One important aspect is the option for shipowners to determine annual fiscal profits on the basis of ship tonnage. But flying the Dutch flag offers other benefits, such as allowing companies to apply flexible crew regulations and make use of additional fiscal measures, reducing the costs of employing Dutch crews by around 30%.

This brochure will give you all the information you need regarding maritime business in The Netherlands. We hope to see you here, flying the Dutch flag!

Melanie Schultz van Haegen Minister of Infrastructure and the Environment

4 5 00 gateway to europe The Netherlands occupies a strategically significant third in terms of total tonnage. Within Europe, it is geographical location that has earned it the name the number one container port. Nowadays, Rotterdam “the Gateway to Europe”. The Netherlands offers an also promotes itself as a ‘brainport’, as it offers easy outstanding base for international logistics because access to top-quality logistics and financial expertise. 01 of its central location in the Eurodelta region and its extensive hinterland infrastructure. Nowhere Amsterdam Airport Schiphol is only a short distance else in Europe are such excellent and convenient from the port of Rotterdam (60 kilometres) and has 02 combinations of sea and airport locations to be found. over 300 destinations. This means expertise in any All commercial and industrial centres are within a line of business can be flown in at short notice. few hours’ drive. This infrastructure, together with the international outlook so characteristic of the The port of Amsterdam is a popular destination Netherlands, has played a major role in the strong for cruise ships, as well as being a major European 03 development of the Dutch maritime industry. industrial port (number 5 in north-western Europe, with Zeeland Seaports ranking number 10). Together, As the gateway to Europe, the Netherlands’ major Dutch ports account for a 45% market share in the ports attracted about 430 million tons of cargo flow Hamburg-Le Havre area. These flourishing ports 04 in 2010, including containers, liquid and dry bulks, have all created logistical networks and distribution specialties like fruits and juices, gas and chemicals, patterns at ever-advancing levels of sophistication. and so on. Worldwide, the port of Rotterdam ranks 05 TOP 10 PORTS IN EUROPE 2010 2009

500 Rotterdam 06

400

300 Antwerp Amsterdam 200 Hamburg Novorossiysk *)

Marseille Primorsk Algeciras Le Havre Bremen 100

0

Gross weight x1 million metric tons *) Including Caspian pipeline Consortium Marine Terminal Source: Port Authorities

6 7 01 A long and distinguished maritime history

The Netherlands’ international focus and outward prominent sectors on a global as well as a European orientation originate in a long and distinguished scale. Maritime equipment from the Netherlands 02 maritime history. The Netherlands has been a powers the world’s most complex seagoing vessels. seafaring nation for over five centuries. As a small The world’s first ever yachts were constructed here. country that is situated partially below sea level The short-sea fleet is highly flexible and of prime 03 and has no natural resources, the Netherlands has importance for inter-EU goods transport. The Dutch developed a close commercial connection to rivers are specialists in heavy-lift vessels and are innovators and seas. Throughout history, the Dutch have in the offshore oil and gas production sector. ventured out to discover the world and set up new Furthermore, the Netherlands is home to the largest lines of business. Every stage in the development of reefer shipping company in the world. 04 shipping, shipbuilding, global trade and maritime services has a chapter in the Netherlands’ maritime The Dutch help to protect the world’s urban areas history. Around 1600 AD, Amsterdam was the centre against rising seas. Dutch companies gave the world for Baltic trade. The strong shipping industry boosted the marvel that is Dubai’s Palm Island and raised 05 the ’s rise as a major naval power in the Russian submarine Kursk when no one else the 17th century. During this period – known in the could. Furthermore, the Dutch navy participates in Netherlands as the Golden Age – the lion’s share of peacekeeping missions all over the world. All these Western European trade was carried out by the Dutch maritime successes account for our nationwide ‘can merchant fleet. These historical achievements still do’ attitude. The Dutch are respected craftsmen that 06 account for the characteristics of today’s extensive take pride in the quality of their work and are always maritime industry, consisting as it does of very on the lookout for pragmatic, sustainable solutions. 07

8 9 02 An excellent business climate 03 04 05 06 07 08

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An excellent business climate competitive commercial industries making a major legal advisors, insurers, maritime education and The Netherlands offers an excellent political and contribution to the country’s prosperity and the research, a modern Royal Navy, equipment suppliers business climate which allows maritime enterprises well-being of its citizens. and service industries: together they all form one to flourish. The economic and social climate of huge maritime network. the Netherlands is stable. The country has been The efficiency and integrity of the Dutch public experiencing continuously favourable economic administration is high. Procedures are handled fast In order to promote all of these maritime interests, growth with very few labour disputes. Conflicts and full consideration is given to the importance of the government has been actively supporting the between employers and employees are generally accountability. Ministerial departments operate in development of the Dutch Maritime Network solved around the negotiating table. Of course, a transparent manner and both national and local (Stichting Nederland Maritiem Land) and the besides a sound economic climate, a stable political politicians are open to dialogue with citizens and branding of its trademark “Maritime by Holland”. climate is of key significance to long-term goals, commercial interests. especially for operations in an unfamiliar business This organisation – which operates as a network – environment. The Netherlands’ political system is a aims at the further promotion and reinforcement democratic and multi-party system and is therefore The Dutch maritime cluster of the Netherlands’ maritime cluster. With an based on consensus. It is also highly pro-corporate, The Netherlands has turned its favourable location executive board made up of prominent people from as the Dutch government is very much aware of for transshipment, accessibility, transport, trade the maritime world, this organisation is actively the importance of having strong, internationally culture and service industry into a major maritime involved in communication, investigation, long- cluster. The maritime cluster in the Netherlands is term policy development, image building, maritime characterised by its completeness and high standards. education and a host of different maritime projects. The Global Competitiveness Index 2011-2012 Top 10. GCI 2011 Rank GCI 2010 Rank Around 12,000 maritime companies create EUR Switzerland 1 1 10.6 billion (USD 15 billion) in added value, with employment amounting to some 185,300 jobs. The Singapore 2 3 indirect added value represents an additional €4.0 Sweden 3 2 billion (US$ 5.7 billion). In the year 2010, above- Finland 4 7 average growth was observed in the offshore, United States 5 4 dredging, port, maritime services, water sports and marine equipment sectors. Germany 6 5 Netherlands 7 8 The shipping industry, major ports, the world’s Denmark 8 9 largest dredging fleet, the largest European inland barge fleet, the third-largest shipbuilding industry Japan 9 6 in Europe (in terms of number of ships) – including United Kingdom 10 12 a prestigious yacht-building sector – offshore, Source: World Economic Forum fisheries, the water sports industry, shipping finance,

12 13 03 A competitive shipping policy

The Dutch government acknowledges that the value Certification requirements for Dutch ships were of shipping lies not only in ships and jobs at sea, but simplified drastically. Within the framework of first and foremost on land. Of the total value added the STCW Convention, the Netherlands has signed by shipping, approximately 70% is created ashore. agreements with Australia, Canada, China, Croatia, 04 Hong Kong, India, Indonesia, New Zealand, The nation’s shipping policy has been designed to Pakistan, the Philippines, the Russian Federation, enable shipowners to manage their vessels from the Singapore, South Africa, Sri Lanka, Turkey, the 05 Netherlands on competitive and profitable terms. Ukraine and Vietnam. It creates an international level playing field whilst retaining the Netherlands’ strong reputation and a Officers in possession of Certificates of Competency prosperous maritime environment for shipowners. issued by any of these countries or by EU member 06 states may be issued a Dutch endorsement of One important aspect of this package of measures is recognition, allowing them to be employed on Dutch the option for shipowners to determine annual fiscal ships. With regard to captains some requirements profits on the basis of ship tonnage. Flying the Dutch with regard to nationality are in place. To captains flag offers benefits such as allowing companies to with the nationality of one of the EU or EEA 07 apply flexible manning regulations and make use member states no restrictions apply. For captains of additional fiscal measures, reducing the cost with the nationality of one of the following countries of employing Dutch crews by around 30%. In the a licensing system applies: Russian Federation, years 1997–2010, the fleet flying the Dutch flag Ukraine, Philippines, Indonesia, India, China, has grown well over 50% thanks to these measures! Croatia. The recognition of certificates for Ratings is 08 Flexible manning regulations were made possible by not subject to signed ‘STCW agreements’ between the the introduction in 1996 of the new Manning Act, Netherlands and the countries of origin. Therefore, incorporating international STCW requirements. ratings from all nationalities may be employed. 09

14 15 04 A vast maritime infrastructure 05 06 07 08 09 10

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A vast supportive infrastructure world’s top 50 banking institutions, and are well dredging, offshore activities and difficult passages, Maritime research and development The Netherlands offers a full and comprehensive known for the diversity and quality of their services. come from Dutch shipyards. Maritime shipbuilding In both technological and commercial terms, maritime infrastructure in which all shipping and Many foreign banks have offices in the Netherlands. know-how is available across the country. The ship- the maritime sector in the Netherlands is highly shipping-related needs can be fulfilled. This is Shipping companies will be interested to hear that repair industry in the Netherlands is the third advanced. Moreover, the government has created evident in the breadth and quality of the maritime almost all the larger banks and accountancy firms largest in Europe. This is hardly surprising given ideal conditions for the further development service provided. The country has never lost its have departments specialising in shipping. that ship repair is an extension of port operations, of maritime know-how. Outstanding maritime solid matrix of services in the areas of maritime that the Netherlands is situated on the world’s most research is carried out by MARIN, renowned administration, finance, insurance, accountancy, Some banks have devoted themselves exclusively to crowded shipping lanes, and Rotterdam is Europe’s worldwide for its research in the area of ship design, brokerage, chartering, chandlering and waste the shipping industry, participating in practically largest port. shipbuilding, shipping and ocean engineering. disposal. Almost all of the larger legal consultants every shipping deal. For instance, they finance MARIN’s core business is the application of that operate internationally have one or more offices projects in the merchant navy, the coastal trade, maritime know-how and technology in general in the country, as do many international banks. ports and all kinds of niche markets. Shipping Marine equipment supply and hydromechanics in particular. Other institutes companies established in the Netherlands have often The country’s 700 suppliers of marine equipment and performing maritime research are Deltares (a joint This vast supportive infrastructure is by no means expressed particular appreciation of the clear way services are the lynchpins of the Netherlands as a venture of GeoDelft and WL | Delft Hydraulics), limited to the greater Rotterdam area. Amsterdam/ in which financial institutions provide information maritime nation. A concentration of ports, shipyards TNO (Institute for Applied Scientific Research), North Sea Canal, Groningen Seaports (Eemshaven and and of the quality of the services they offer. The and ship repair industries has created a nucleus for the Delft University of Technology, the University of Delfzijl), Zeeland Seaports (Vlissingen and Terneuzen), Netherlands has a powerful and well-developed industrial suppliers of marine products. The annual Twente and Erasmus University Rotterdam. Den Helder and Harlingen all offer all-round packages capital market. Many private investors are interested production value of the Dutch equipment industry is of services too. No matter where they operate, shipping- in the maritime sector, often as silent partners. €1.8 billion (US$ 2.5 billion). Marine-supply industries A number of advanced simulators used for R&D related businesses in the Netherlands are characterised Banks take a positive attitude towards such forms cover every possible area of shipping and offshore and education are located in the Netherlands. by the international nature of their services. of financing. Numerous experienced tax consultants technology. A wide range of marine activities can be Two well-known names in this field are the are close at hand to provide fiscal advice. Some have found in the Netherlands, particularly in the west and the Netherlands Maritime Simulation Centre (MSCN) The Dutch government and the business community special shipping desks geared to maritime business north of the country. Here, shipowners are surrounded in Wageningen and the STC Group in Rotterdam. in the Netherlands share the view that the maritime and all pride themselves on their long-standing and by retailers, producers, engineering services, the repair sector as a whole should display strong internal extensive national and international experience. industry and co-producers of marine equipment. The coherence. They have joined forces as part of a ‘Top And with regard to their fiscal know-how they rely international and maritime nature of the country has Sectors Policy’ to ensure that top sectors as a whole on solid national and international networks. also encouraged many foreign equipment suppliers are strengthened. Logistics is one of the top sectors to open local offices in the Netherlands. Just-In- for which a new coordinated government policy is Time deliveries and co-production have streamlined being formulated and implemented. Shipbuilding and repair production and services to the industry. In this context, Shipbuilding in the Netherlands has developed suppliers act as partners, not merely as salesmen. Their from a general sector building all kinds of crafts competitive edge is found in quality, innovation, know- Maritime insurance and to a technically sophisticated sector specialising in how and customer service. And the international financial services modern custom-built ships. Many special-purpose nature of business has encouraged suppliers to reduce Three major Dutch banks are positioned among the ships, such as those built for heavy cargoes, large-scale their prices to a very competitive level.

18 19 05 A highly skilled workforce 06 07 08 09 10

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Work and training can be forged between training and professional educational institutes in the Netherlands, of which The Netherlands offers a highly skilled, flexible Labour productivity in the practice. The various maritime educational options there is a great variety, meet the requirements of the and multilingual labour force, with expertise of in the Netherlands form an integrated part of STCW Convention. all matters both ashore and on board. Moreover, Netherlands is amongst the country’s national education system, and are the country is highly flexible in its approach to therefore the responsibility of both the Minister of employment contracts. An example of this is the the highest in the world Education, Culture and Science and the Minister high share of recruitment via temping agencies, a of Infrastructure and the Environment. The latter’s number of which provide skilled staff in almost all responsibility is to ensure that students who finish professional business areas while others concentrate international companies within the Netherlands. their education are truly competent and safe seafarers on certain sectors or posts. whose skills can be endorsed. The Netherlands has a sound social-security system Labour relations in the Netherlands are excellent. that makes the proper provisions in the event of In 1985, influenced by modern ship development, Unions and employers generally avoid open illness, disability, unemployment or retirement. an academic programme was introduced with the confrontation, having learnt over the years that The result is a workforce that is able to invest their goal of qualifying as an official Maritime Officer. In both sides are better off when solutions are found best efforts in their work. Foreign management staff appropriately equipped ships, this type of officer may through negotiation. Thanks to this work climate, temporarily working for Dutch companies are able to combine the functions of navigation officer, engineer the Netherlands loses very few working days due enjoy tax exemption allowances of up to 30% of their and radio operator. The Maritime Officer course to strikes compared to other countries in the EU. gross salary, applicable to those possessing skills that takes four years, including a 12-month on-board Labour productivity in the Netherlands is among the are scarce or absent in the Dutch labour market. cadet period. Nautical institutes in the Netherlands highest in the world, and average personnel costs are make extensive use of advanced simulators: every therefore actually relatively low compared to those graduate Maritime Officer, crane operator or in surrounding countries. Multidisciplinary education for ‘dredger’ has already gone through many hours of ship’s officers hands-on experience at their academy before they As a rule, the country’s long seafaring tradition and Dutch education and training has always been widely start their careers. Naturally, maritime education its well-equipped training institutes ensure that admired for its thorough approach and the wide enjoys a special relationship with the business shipping companies in the Netherlands will always variety of subjects that are made available to students. community in the shipping, port and transport be able to find the qualified staff they need to make Foreign language skills are given a high priority in all sectors, and their representatives may commonly their operations in the global market successful. courses. As a result, the foreign language skills of the be found on the boards of directors of the various Government supervision of training institutes and Dutch are among the best in Europe. The curriculums Dutch nautical educational institutes. Since the the close relationship between training and the of almost all vocational training courses include shipping industry is by definition an internationally world of work safeguard the highest standards for all trainee periods that quickly bring students into close operating domain, requirements for the education professional training and education. 85% of the Dutch contact with actual hands-on work. Moreover, the and training of seafarers have been agreed upon at population speaks English. As a result of the Dutch contents of these courses have been determined in the international level. As well as multidisciplinary tendency towards international orientation, many close consultation with industrial, trade and business education, monodisciplinary courses of education employees look forward to working in the offices of communities, so that the strongest possible link are also provided within the Netherlands. All

22 23 06 Efficient and flexible manning 07 08 09 10

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Manning to employ captains who are nationals of any one High crew standards and safety are matters of of the countries with which the Netherlands has “Dutch law is very flexible with regard to the nationality of prime importance for any shipping enterprise. The entered into an STCW agreement. Said approval Ministry of Infrastructure and the Environment for captains with the nationality of the Russian crew members that shipowners wish to employ.” establishes safety policies governing all maritime Federation, Ukraine, Philippines, Indonesia, China traffic under the . These and Croatia will then be submitted to a committee policies are also intended to protect the marine formed by the Netherlands ship-owners association environment. Shipowners are responsible for KVNR and the Netherlands seafarers union Nautilus may therefore be employed on Dutch vessels. manning, and are given plenty of leeway to do this International. Once the committee has granted the in an efficient and flexible way. request, the captain in question may be employed. All foreign captains, chief mates and chief engineers The same procedure applies to non-EU officers and will be tested on their knowledge of relevant Dutch The issuance of a minimum safe manning certificate ratings. The procedure is administered by the KVNR legislation prior to the issue of an endorsement will take place after shipowners have submitted and usually only takes a couple of days. of recognition. Finally, all captains and officers, their manning plan for approval to the Inspector regardless of their nationality, and every rating from General of the Human Environment and Transport the Netherlands must possess a Dutch seaman’s Inspectorate (ILT), detailing the minimum number Competency requirements book. Seaman’s books are issued by Kiwa. of crew they consider to be necessary for the Captains and officers serving on Dutch ships must vessel’s safe navigation under any circumstances. be in possession of a certificate of competency In assessing this proposal, the ILT will examine all issued by Kiwa on behalf of the Dutch authorities. Ratings relevant details, such as working hours, the ship’s Kiwa is an international organisation that is active Ratings require no other qualifications than those equipment, the type of ship, the type of trade and in quality assurance and certification all over the prescribed by the STCW Convention. Non-EU or so on. Upon approval, shipowners will be issued a world. Captains and officers from countries the non-EEA seafarers may be employed subject to minimum safe manning certificate with regard to Netherlands have entered into an agreement with the same conditions that are applicable in their the number of officers and ratings. that is in accordance with STCW may be employed country of domicile. Wages must at least meet ILO on Dutch ships. Only captains and officers who standards. However, an agreement between the have been issued an endorsement of recognition KVNR and Nautilus International stipulates that Nationality requirements in the Netherlands will be employed in the Dutch certain conditions must be met when employing Dutch law contains no demands regarding the merchant navy. The Netherlands has signed such these seafarers. nationality of crew members that shipowners wish agreements with Australia, Canada, China, Croatia, to employ, with the exception of the captain, who Hong Kong, India, Indonesia, New Zealand, is required to be either a Dutch, EU, Icelandic or Pakistan, the Philippines, the Russian Federation, Norwegian national. However, if shipowners are able Singapore, South Africa, Sri Lanka, Turkey, the to demonstrate that despite their sincere attempts to Ukraine and Vietnam. The Netherlands has also do so, it has proved impossible to employ a captain of recognised the EU and EEA countries in this respect. one of these nationalities, they may ask for approval Captains and officers from all those countries

26 27 07 A favourable maritime tax climate 08 09 10

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A favourable maritime tax climate participation exemption does not apply on income from • Towing activities or the provision of general assistance Exceptions to the flag requirement A favourable maritime tax climate is important to labour, wealth, inheritance, gifts or profits), the Netherlands at sea to ships. Ships eligible are those of which the In the following cases, exceptions apply to the shipping companies that operate worldwide. The Dutch has entered into over 100 bilateral tax treaties with other operational activities are carried out for most part requirement in point (a) above regarding flying the tax system has many features that make the Netherlands countries regarding the prevention of double taxation. The (this means more than 50%) at sea in one year. flag of a member state of the EU or EEA for owned an attractive location for businesses. Important elements double taxation conventions apply both to residents of the • Dredging services at sea. Ships eligible are those of ships or ships in bareboat charter: include the way profits are considered, the participation Netherlands and to those of the treaty countries. which the operational activities are carried out at • If, prior to operating the new vessel, the percentage exemption, the absence of withholding taxes on outgoing sea and for most part (this means more than 50%) of vessels that are already operated by any shipping dividends, royalties and interest, the possibility to allow consists of transportation at sea. enterprise, that sail under a flag of a member state of for accelerated depreciation schemes, the wage costs tax Tonnage tax • Exploration of the sea bed (research vessels). the EU or EEA, and that qualify for the tonnage-based facility and the large number of bilateral tax conventions In 1996, the Netherlands introduced a special tax facility • Cable and pipe laying on the sea bed. tax regime, has not been reduced in relation to January that the Netherlands is partner to. for shipping enterprises. Dutch fiscal law allows shipping • Tackle and lifting activities at sea (crane vessels). 17th 2004 (reference date). This calculation will be companies that are established in the Netherlands to based on the net tonnage, to be judged in relation choose between either the regular system of taxation on to the entirety of the shipping enterprise’s fleet that Advance tax determination the basis of actual profits made or tonnage-based taxation: Operation of seagoing vessels qualifies for the tonnage tax. For shipping enterprises Company profits should be determined according to a low lump-sum tax based on the net tonnage of the ships A shipping enterprise is considered to operate a vessel: that have applied for the tonnage-tax regime after sound business practice and consistent accounting operated by the shipping company, regardless of the a. If an enterprise conducts the management of the vessel January 17 th 2004, the fleet at the year-end of the first methods. This will result in a way of determining profits actual profits made. This favourable tax regime, known to a significant extent and the vessel flies the flag of one year, for which the enterprise qualified for the tonnage that is best suited to an enterprise’s circumstances. as the tonnage-tax regime, has resulted in an effective tax of the member states of the European Union (EU) of tax regime, will serve as the reference date. The tax system in the Netherlands is unusual insofar rate comparable to that of open registers. the European Economic Area (EEA) and the vessel is • If, prior to coming into service of the ship, the net that arrangements with the tax inspector can be made either 1. owned or co-owned by the enterprise and not tonnage of ships that are already operated by the in advance with regard to the determination of taxable bare boat chartered out or 2. bare boat chartered in; shipping enterprise, that fly the flag of one of the profits or on other matters such as the valuation Conditions of the tonnage-tax regime b. If an enterprise mainly conducts the commercial member states of the EU or EEA, and that qualify of assets to be transferred to the Netherlands. To be eligible for application of the tonnage tax regime, management of a ship owned by another company, for the tonnage-based tax regime, amounts to This practice of advance tax determination allows the following conditions must be met: provided the enterprise conducts the management of at least 60% of the proportion of the shipping companies to reach an agreement with the Dutch tax - Shipping enterprises must be subject to Dutch income one or more other ships in the manner as described enterprise’s owned or bareboat fleet that qualifies authority on taxable profits and other fiscal matters tax or corporate income tax (CIT). in point a) above, whereby co-ownership means the for the tonnage tax. before starting up their activities in the Netherlands. - Profits must be derived from the operation of sea-going enterprise’s share in the vessel is at least 5%; • If the three-year average percentage of all owned vessels for the following shipping services: c. If an enterprise operates the vessel in time or voyage or bareboat vessels that qualify for the Dutch • The international transport of people or goods charter, provided the enterprise conducts the tonnage-based tax regime and fly the flag of one of Participation exemption overseas. management of one or more ships in the manner as the member states of the EU or EEA in the relevant One of the pillars of the Netherlands’ Corporation Tax • The transport of people or goods overseas for the described in point a) and provided the enterprise’s share fiscal year has not decreased in comparison to the Act is the ‘participation exemption’. This exemption purpose of the exploration or exploitation of natural in the vessel (ownership or co-ownership) is at least 5%; preceding three-year average. protects companies from double taxation in the event resources at sea. This category includes transport d. d. If an enterprise conducts the entire crewing and that a subsidiary channels its profits back to the parent ships, supply ships and stand-by ships used in the technical/nautical management of the vessel in the Towing and dredging activities are exempt: tugboats and company. To prevent double taxation on other sources (the offshore industry. Netherlands on behalf of a third party. dredging vessels do not qualify for the exceptions.

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Directly related activities of taxable profit depends on the total net tonnage of The profits for the first ship are €9.08 (for the first tax and/or social security premiums on the salaries paid Profits from activities directly related to the qualifying the vessel and the fixed taxable profits of the vessel, 1,000 net tons) + €34.05 (for the excess) per day or to the crew (Pay as you earn tax, PAYE tax). shipping services mentioned above are included in in Euros, per 1,000 net tons per day. Interruptions €15,742.45 per year. The tax payable on this amount The advantages offered by this concession do not affect the tonnage-tax regime. These include loading and that do not represent an encroachment of operations, is €3,148.49 (20% of €15,742.45). For the second the wages received by the crew, and the entire benefits unloading (stevedoring), as well as ship-brokering such as maintenance, repairs, or periods in which ship, the taxable profits are €9.08 + €61.29 + €45.40 accrue to the company. It works like this: shipowners activities carried out by the shipping company itself. the ship was out of service because of unfavourable per day or €42,256.05 per year. The profit tax due is or employers still transfer the PAYE tax to the Dutch Directly related activities of this kind fall within the market circumstances, cannot be deducted. therefore €8,451.21 (20% of €42,256.05). treasury, but this amount is reduced by 40% of the scope of the regulations insofar as they are performed fiscal income of captains, officers and ratings who on behalf of ships operated by the enterprise. Profits Taxable profits per day per 1,000 net tons are residents of an EU or EEA country. For seafarers from ocean shipping do not include profits from offshore Administrative duties resident in other countries, shipowners may deduct 10% € 9.08 for the first 1,000 net tons fishing, pilotage and pleasure trips. In the case of an enterprise that also makes profits of the fiscal wage if seafarers are subject to wage tax € 6.81 for any excess up to 10,000 net tons from other activities, only the profit obtained from and/or social security premiums in The Netherlands. € 4.54 for any excess up to 25,000 net tons ocean shipping and directly related activities will be Being subject to Dutch wage tax depends on bilateral A decision every 10 years calculated on the basis of tonnage. Hence, all assets, tax treaties; in most cases countries of domicile levy the The decision to opt for the tonnage tax regime has € 2.27 for any excess above 25,000 net tons liabilities and profits related to shipping should wage tax. The social security treaty applicable stipulates to be made in the first year of taxable profit from € 0.50* for any excess above 50,000 net tons be separated from those related to the shipping whether Dutch social security premiums must be paid. shipping operations being made, or in every tenth * The reduced rate of € 0.50 is applicable to vessels that were:: enterprise’s other operations and in principle, Seafarers living in an EU or EEA country and employed year thereafter. Upon approval of the application - First registered under a flag after 31 December 2008 and for which the be valued at their original cost (historical cost by Dutch shipowners on board Dutch-flagged vessels by the tax authority, the tonnage tax regime will be profits from that date were set on basis of the Dutch tonnage tax or accounting). The other profits will be determined on must pay social security premiums in the Netherlands. - Flying a non-EU/EEA flag in the five years prior to the application of applicable for 10 years. After each 10-year period, an the tonnage-based profit calculation. the basis of real turnover and costs and are subject to enterprise may continue in the regime for another 10 the regular system of taxation. For more information Total deductions may not exceed the total amount years, or revert back to the regular system of taxation. In case of ship management, the taxable profit will on this matter, please contact the KVNR, the Dutch of wage tax and/or social security premiums that When opting for the tonnage-tax regime, a tax- be reduced to 25% of the taxable profit calculated tax authority, or a specialist accountant. should be withheld by any shipowner for all of his claimed reserve for the 10-year period is set. This is according to the table above. Furthermore the profit as employees (including staff employed ashore) in the done by calculating the difference between the book established above will be increased with profits derived Netherlands. Detailed advice must be sought in value and the fair market value of the assets relating from activities that do not qualify for the tonnage Wage costs tax facility order to explore the possibilities that this wage-tax to the shipping activities. If at any time within the 10- tax regime. The calculated taxable profits are taxed Over and above the corporate tax option offered to the concession can offer the shipowner. year period, a shipping enterprise fails to comply with at the general Corporate Income Tax (CIT) rates. In owners and operators of seagoing vessels, the government the conditions for the tonnage-tax regime, the tax- 2012, those rates amount to 20% on the first €200,000 of the Netherlands offers another tax concession that claimed reserve will be included in its taxable base. of taxable corporate income and 25% on the taxable can yield considerable savings to shipowners in wage corporate income for the amount over €200,000. costs, irrespective of the crew’s nationality.

Calculation of taxable tonnage-based profit In order to benefit from this tax concession, the crew In the case of an enterprise whose activities are For example: A shipping company operates one must be registered on a ship flying the Dutch flag and limited exclusively to ocean shipping, the amount ship of 6,000 net tons and one of 20,000 net tons. the shipowners must be obliged to withhold Dutch wage

32 33 08 Top of the ‘WHite List’ ranking 09 10

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Safety and registration The White List of the Paris Memorandum of Classification societies Registration of existing ships The Netherlands ranks fifth (2010) on the White List of Understanding (PMoU) of Port State Control The member states of the European Union have Owners and/or bareboat charterers may register a the Paris Memorandum of Understanding (PMoU) of Top 5 PMoU 2007/9 PMoU 2008/10 implemented a system of recognition wherein ship in the Dutch register. Upon registration, any Port State Control. From Port State Control statistics Rank Rank classification societies are recognised by the European existing certificates issued by other flag states and the number of accidents and incidents, it appears Commission. Every member state has the right to become invalid. New certificates are to be issued Bermuda 1 1 that Dutch-flag vessels have an excellent safety record. authorise classification societies to carry out activities by or on behalf of the Netherlands Authorities. For Germany 7 2 on behalf of that state. European ships the relevant transfer regulations The Netherlands pursues a quality flag-shipping Sweden 12 3 are applicable. Pending the approval of drawings policy. This policy has provided Dutch companies – United Kingdom 5 4 In the Netherlands, classification societies in their role and/or outstanding items to be dealt with, short- and international companies based in the Netherlands as Recognised Organisations (ROs) are authorised by the term certificates may be issued for a period not – with a level playing field in their international Netherlands 9 5 government to carry out the survey and certification of exceeding three months. Without valid certificates, operations, maintaining an outstanding reputation in Source: Paris MoU all ship types. All the statutory surveys and certification it is unlawful to undertake a voyage with a ship the areas of safety and quality. activities based on the International Conventions flying the flag of the Netherlands. Applications for regulations is the central element. The objectives of the have been transferred to those ROs. Currently, seven registration in the Netherlands may be preceded The government is constantly taking steps aimed at inspection programme include: recognised classification societies – each a member of by consultations at the Human Environment and stimulating maritime entrepreneurs by developing • Monitoring the overall level of safety and the IACS – carry out all statutory inspections as well as Transport Inspectorate office in order to discuss further measures in consultation with maritime trade environmental compliance in the Dutch the tonnage-measurement activities. the scope of the administration and inspections organisations. Much attention is being focused on merchant-shipping field; involved. If considered necessary by the owner, an education, training, and safety management aspects such • Compliance with obligations (within approved The Human Environment and Transport Inspectorate application may also be preceded by a preliminary as bridge resource management. Shipowners have been limits) by parties under supervision; performs annual office audits in order to monitor whether inspection of any vessel to determine whether or granted great flexibility in the optimal composition of • Meeting flag-state requirements. classification societies carry out their assignments as not the procedure should be continued or started the crew. At the same time, shipowners/operators should agreed. Furthermore, several on-site reality checks are (carried out by one of the ROs). Payment of the costs be fully aware of the prime responsibility they have for Compliance will be judged by company performance carried out to verify compliance with the agreement of this inspection must be agreed upon in advance. the implementation of all safety and environmental and not for every individual ship. in practice. This system of supervision and monitoring A preliminary inspection is not fully comprehensive regulations. At both the national and international is supplementary to the monitoring carried out by the since it deals mostly with major items. level, the human element has been identified as the In the Inspectorate’s ranking system, the Paris International Association of Classification (IACS) in main contributing factor in accidents and incidents. The MoU rankings will be heavily weighted, in addition addition to periodic audits carried out by the European application of formal safety assessment and risk analysis to the Inspectorate’s own inspection results and Maritime Safety Agency (EMSA) on behalf of the Registration of newly built ships in the rule-making processes is fully supported. The use information received from sources such as the European Commission. Prior to the order or construction of a ship, it is of such techniques in the design process of new ship Tokyo MoU, US coastguard etc. For well-performing recommended that the technical department of the types is encouraged. shipowners, this approach lessens the burden of owner/future owner and shipyard officials contact flag-state control. The Inspectorate will enter into Registration of ships one of the Recognised Organisations to discuss a memorandum of understanding with qualifying There are two types of registration: feasibility. In addition to regulations such as SOLAS, Effective flag-state control shipowners about mutual rights and obligations • Full registration in the Dutch Ships Register for MARPOL and ILO, the Netherlands Ships Decree The Netherlands Human Environment and Transport regarding quality-control and flag-state inspections. ships owned by the shipowner. has to be observed. These national rules, though Inspectorate (ILT) has set up an inspection programme • Bareboat Charter Register for ships that are in sometimes more explicit, conform to all International to improve the effectiveness of flag-state inspections. bareboat charter. Shipping Conventions. In this ranking, compliance with and observance of

36 37 09 Pioneers in sustainability 10

New challenges Green and powerful shipping industry’s competitive potential. A sound and strong Reduction of carbon footprint Due to climate change we are faced with new The Dutch fleet is among the youngest and most modern shipping industry in the Netherlands, within Europe A major challenge is posed by the intention of challenges. Medium and long term predictions in the world. It is therefore also among the cleanest. and worldwide is a prerequisite. At the same time, drastically reducing carbon emissions (CO2). Thanks indicate that world trade – and therefore world Dutch shipowners are pro-active and make every stakeholders are doing their utmost to improve the to numerous innovations, the shipping industry’s shipping – will grow, requiring ambitious effort to achieve further significant improvements to industry’s environmental performance as much carbon emissions per ton/kilometre have been environmental measures. Over the past decade, the shipping industry’s environmental performance. as possible. Cooperation is also sought between significantly reduced. And as emissions from the numerous treaties, conventions, laws, rules and They continue to invest in high-tech innovations and industries of economic importance, e.g. between shipping industry account 2.7% of total global carbon regulations relating to the environment have been unorthodox designs. The Dutch government seeks to port and greenhouse areas. Fossil fuel and energy use emissions, this reduction is a remarkable achievement. drawn up and come into effect. This has resulted promote this intention by offering financial support in ports leads to an annual release of 28 MTON of in an impressive reduction of the adverse effects on for innovation. In the period 2006-2009, annual CO2 and 2000 MW of heat. Commercial greenhouses Further reduction will require innovative thinking, many aspects of the marine environment and the R&D expenses were increased by around 35%, on the other hand have a growing demand for heat but according to the Dutch, emission-free vessels environment in general. which is significantly higher than the Dutch average. and CO2. A recently initiated mainport-greenport should be a reality by 2050. To achieve this ambition, The annual R&D expenses of the Dutch maritime project focuses on developing a smart interface the Dutch shipping industry seeks cooperation The Dutch like to pioneer, conduct research on energy cluster are estimated at about US$ 500 mln. Of these for the heating network and CO2 supply. The within existing international networks and builds up efficient propulsion technologies and find a way to R&D expenses, nearly half can be attributed to the opportunities that this creates provide opportunities alliances with government and scientific institutes. combine environmentally responsible shipping with leading firms. In the Netherlands, governments and for a more sustainable future. Share our vision on innovation and sustainability an economically sound and strong shipping industry. trade and industry try to safeguard the shipping and join in!

38 39 ADdRESSES

40 41 The Directorate for Maritime Affairs is part of the Directorate-General for Transport and Mobility, which is The KVNR (Royal Association of Netherlands Shipowners) represents the individual and collective interest responsible for safe, sustainable and competitive transport systems for goods and passengers. This includes of companies in the shipping sector. Its collective representation focuses upon maintaining and improving an transport by air, railway, road and water. internationally competitive business climate, in both the economic and social fields. The KVNR provides a neutral platform for the representation of both large and small firms in various fields and at various levels. In order to Ministry of Infrastructure and the Environment Phone +31 (0) 70 456 0000 be able to carry out this function effectively, the KVNR maintains contacts with the Dutch government and Directorate for Transport and Mobility Website www.rijksoverheid.nl with organisations involved – in the widest sense of the term – with maritime affairs. The KVNR stimulates Maritime Shipping Unit international shipping development as a member of international shipping associations. P.O. Box 20901 Human Environment and Transport Inspectorate 2500 EX The Hague P.O. Box 90653 Royal Association of Netherlands Shipowners (KVNR) Phone +31 (0) 10 414 6001 The Netherlands 2509 LR The Hague “Willemswerf” – 15th Floor E-mail [email protected] Phone +31 (0) 88 489 00 00 Boompjes 40 Website www.kvnr.nl 3011 XB Rotterdam The Netherlands

The Netherlands Foreign Investment Agency (NFIA) is an operational unit of the ministry of Economic Affairs, Agriculture and Innovation. The NFIA helps and advises foreign companies on the establishment, roll-out and/ or expansion of their international activities in the Netherlands. The NFIA was established more than 30 years ago, and has since supported more than 2,700 companies from nearly 50 countries to establish or expand their international activities in the Netherlands. Besides its headquarters in The Hague, the NFIA also has its own offices in the United Kingdom, Turkey, North America, Asia and the Gulf Region, as well as a representative Disclaimer office in Brazil. Additionally, the NFIA works together with Dutch embassies, consulates-general and other organisations representing the Dutch government abroad, as well as with a broad network of domestic partners. The information in this brochure is for information purposes only. No legal status may be derived from this document. Although the authors have taken the utmost care in compiling this brochure, errors, omissions or Netherlands Foreign Investment Agency Phone +31 (0) 88 602 8818 inaccuracies may still occur. Furthermore changes to e.g. legislation, procedures or departments, may cause P.O. Box 20105 E-mail [email protected] information in this brochure to be outdated. The authors therefore assume no liability for any inaccurate or 3500 EC The Hague Website www.nfia.nl incomplete information, nor for the consequences of any actions taken, or interpretations made, thereon. You are The Netherlands encouraged to contact the respective organizations to discuss specific details and circumstances.

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