Switzerland, a maritime nation

A study run by Oxford Economics requested by the SUISSENÉGOCE in 2016, outlines the importance of this economic sector in Switzerland. This study also unveils the positive impact that the introduction of a tonnage tax would have for the country’s competitiveness and attractiveness for businesses. According to the latest statistics published by UNCTAD, among maritime nations, Switzerland ranks 9th in the world and 4th in Europe in terms of gross tonnage.

Switzerland currently represents:

• A fleet made of 3500 ships in ownership and/or under charter (time or voyage) at any given point. This is the equivalent of a volume of 1,5 billion metric tons (MT).
• Approximately 65 Shipping companies and Shipping services companies, located in 12 cantons, most of them being based in Geneva, Zurich, Basel, Vaud, Ticino and Zug.
• The headquarters of major players in this sector, such as the second largest container-ship operator in the world, MSC, but also shipowners such as Massoel, Suisse-Atlantique, ABC Maritime, charterers and companies that provide related maritime services.
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The Shipping sector contributes yearly to the Swiss GDP with CHF 2.4 billion (approx. 0.4% of total GDP). It represents approximately 2000 direct jobs.
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SUISSENÉGOCE Shipping White Paper

Government Consultations

The future orientation of the Swiss flag and maritime fleet

The Swiss Tonnage Tax

An opportunity for the shipping industry in Switzerland

The introduction of a tonnage tax in Switzerland would strengthen the Swiss shipping sector. Job creations can be expected. Furthermore, this would contribute to aligning Switzerland with international standards. It would allow for Switzerland to be aligned with international standards. It would also boots the country's economy and reinforce its attractiveness.

If a tonnage tax is introduced in Switzerland, the following could be expected as of 2027:

• 9000 jobs (a very strong additional of 7000 jobs)
• Between 400 and 450 million of additional expected fiscal entries and social security contributions.
• An annual contribution of CHF11.6 billion from the Shipping sector to the national GDP.
• A fleet growth rate of approximatively 400% (GT).

This high potential represents an important factor, just like the competition of other countries getting stronger in this field: The UK through the Brexit, France recently granting incentives and also Luxembourg, where the introduction of a tonnage tax is being discussed. This illustrates the need for Switzerland to boost its attractiveness for this largely unknown sector.

The introduction of a tonnage tax would send a strong signal that Switzerland is taking measures to enhance its ability to compete.

Tonnage tax is a tax on profits that can be applied to shipping companies including ship management companies. The tax is calculated based on the Net tonnage of the ships incorporated into the fleet of vessels operated or managed by a company. It is therefore independent from the volume of material transported and the operating profit of a shipping company. Taxation through this means is therefore independent of the volume of material transported and the operating profit of a shipping company.

In the form currently debated, ecological criteria will also be considered. This will encourage investments into modern and safer fleets, that are also more respectful of the environment.

The tonnage tax's several advantages are :

- A simplified management of taxation, for both the tax authority and the companies in the sector. This method of taxation is based on an objectively measurable variable - net tonnage - by independent certifying bodies that determine the transport capacity of the vessels.

- A greater stability and predictability of the level of tax revenues for the cantonal and federal government. A company that decides to adopt the tonnage tax as a taxation method is linked to apply this method for a period of 10 years (lock-in).

The adoption of tonnage tax by a shipping company is not compulsory but optional. Once available, this method of taxation can or cannot be adopted by a given company.