Danish Shipping has welcomed the news that the government has retained a tax exemption for seafarers under the Danish International Register of Shipping (DIS).
The industry association has been lobbying hard for the tax break to be retained to preserve the Danish flag.
Seafarers of any nation operating on ships flagged with the DIS do not pay income tax.
The government has now completed a review of its business support and has kept the regime in place.
Danish Shipping said its long and tough campaign to explain the benefits to the country has borne fruit.
“It is very good that the government has decided to preserve the DIS scheme, also known as the seamen’s tax,” said the organisation’s chief executive, Anne Steffensen.
“I see it as a very clear expression that the government recognises that Danish-flagged shipping is worth preserving and creates great value for Denmark,” she added.
Danish Shipping had warned of dire consequences earlier this year if the government had scrapped the system.
It believes Danish shipping would be significantly weakened by not being able to compete on a level playing field with other shipping nations.
Good news for all Denmark
“I would like to confirm that the government has listened to our serious concerns. Now there is calm again about the framework conditions for Danish shipping,” Steffensen said.
“We are Denmark’s largest export business and contribute jobs and prosperity to the entire country. So today’s announcement is good news for all of Denmark,” she added.
Danish Shipping argued there would have been fewer seafarers and vessels under the domestic flag if a government committee’s recommendation to scrap the measure had been adopted.
There has been broad political support for Danish shipping for many years.
The DIS scheme has been in force since 1988 and the country is among the 10 biggest shipping nations globally.
There are about 7,500 Danish crew members currently.
