| | United States Taxation of U.S. Source International Shipping Income (Site not responding. Last check: ) |
 | | The United States Tax Reform Act of 1986 imposed on foreign corporations not doing business in the United States an annual tax equal to 4% of their U.S. source gross transportation income. |
 | | The tax applies to the shipowner and all charterers and, for that reason, results in double taxation since the owner and all charterers are subject to it. |
 | | Since it is a gross tax, a charterer may not deduct the costs of crewing, insurance, etc. from the income earned, nor is a sub-charterer permitted to deduct the amount it pays in charterhire from the income it earns from use of the vessel. |
| www.flottcolaw.com /CM/newsarticles/newsarticles25.asp (1576 words) |