According to the proposed Year-End Regulation 2026, the national exemption from the EU/EER flag requirement for the application of the Dutch tonnage tax regime will remain in effect in 2027. This means that vessels added to the fleet in 2027 will not be required to comply with the EU/EER flag requirement in order to qualify for the Dutch tonnage tax regime. However, a shipping company must have at least one vessel with an EU or EER flag to apply for the tonnage tax regime.

EU flag requirement

Under the tonnage tax regime, shipowners, bareboat charterers, and ship management companies performing full crew and technical management for third parties, are generally required the vessel sails under the flag of an EU or EER Member State. There are, however, certain exceptions to this rule. One such exception applies when the so called national exemption is in force for a given calendar year. Whether this exemption applies is determined based on the percentage of net tonnage of vessels flying an EU or EER flag compared to the total net tonnage of all qualifying vessels in the Netherlands. If this percentage has not declined on average over a three-year period, the exemption will be applicable. Recent figures show that the share of net tonnage of EU/EER-flagged vessels increased slightly in the period 2023–2025 compared to 2022–2024. Consequently, the national exemption will apply in 2027.

Minimum of one EU/EER flagged vessel

For the application of the Dutch tonnage tax regime, vessels added to the fleet in 2027 are not required to sail an EU/EER flag. However, since 1 January 2020, an additional condition applies. The shipping company must have at least one vessel with an EU/EER flag under (co-) ownership, bareboat charter, or ship management. If this is not the case in 2027, the company must first ensure that at least one vessel sails under an EU/EER flag. After this requirement is met, all subsequent vessels added to the fleet in 2027 may sail under any flag of choice.

Final remarks

Should you have any questions regarding the application of the tonnage tax regime or wish to explore the possibility of utilizing the national flag exemption in 2027, please do not hesitate to contact us.