The planned increase of wage tax relief from 40% to 100% for the German flag has become reality: as of now shipowners do not have to pay wage tax to the tax office for their seafarers working on German-flagged merchant ships.
The European Commission has declared its consent to this aid on 3. May. With the publication of this resolution in the Federal Law Gazette (Bundesgesetzblatt), this new regulation will come into force.
With this act the federal government and states make good on their promise to make the German flag more competitive. The shipowners deduct the full wage tax from the wages of their seafarers, but may keep it rather than forwarding it to the tax office. This puts German shipowners on equal footing with many shipping companies abroad that do not have to pay wage tax for their seafarers.
Shipowners may utilize the full wage tax relief from the June wage payment period.