of regulation, while others want to cruise with commercial safety codes but stay private. He adds, “Going commercial is an emotive and financial decision. Commercial yachts can offset some costs but I don’t imagine many make a profit”.
Oscar Brown FCCA is Principal at Baker Tilly on the Isle of Man. He points out that not all registries can move a yacht from pleasure to commercial and some flag states only work with commercial yachts over 24M. He says, “With the increased regulation for commercial vessels the need for a registry that is in the yachts main time zone and has good communication has become a major factor. The ongoing and survey costs increase considerably for commercial yachts so this financial levy is considered more and more when choosing a commercial flag. The primary consideration should be safety and good regulation for commercial vessels.”
There are important differences between charter and pleasure registration points out Ms Ayala at the Panama Consulate. In the case of Panama, taxes for charter yachts are paid annually pleasure are paid
bi-annually, every two years. The amount of taxes varies too; for charters it depends on tonnage while for pleasure yachts the amount is fixed; $1,000 dollars for the Panamanians and Panamanian companies and $1,500 dollars for foreigners. For yachts designated on private or commercial the Panama Ship Registry offers economic advantages. For the pleasure yachts there is one fixed bi-annual economic tax comparable to other Registries. The commercial yachts have several discounts, such as ‘Eco-Ship’ up to 50% during the first three years.
“Yachts can get YET (Yacht Engaged in Trade) certificates from some Registers” says Crellin. The Cayman Islands Shipping Registry implemented its own YET dual use programme in December last year and the Marshall Islands back in 2015. A YET is a yacht of 24 metres or more LOA, holding a valid Certificate of Class, which is voluntary compliant with all applicable commercial standards and regulations; which has obtained and maintains a Yacht Engaged in Trade Certificate of Compliance, allowing the yacht to obtain temporary Certificate(s) for a Yacht Engaged in Trade,
JERSEY SHIPS’ REGISTRY Jersey has had an active ships registry since 1803, therefore offering over 200 years of experience. The Registry is a member of the coveted Red Ensign Group and has a worldwide portfolio of vessels which are able to fly the unique defaced Jersey Red Ensign. The Registry welcomes applications from EU, Commonwealth, British, Crown Dependencies and Overseas Territories individuals and companies. With a well-regulated offshore finance centre, Jersey also has the associated maritime, legal, company formation and banking expertise to assist potential owners in their financial needs and to register their private or commercial vessel at the Jersey port. For more details Tel: +44 (0)1534 448 128 or visit
www.ports.je
and therefore to engaging in up to 84 days of charter per calendar year with no more than 12 passengers. To be eligible to register as YETs, a yacht must either be in possession of a Value Added Tax [VAT] paid certificate or other document proving that the yacht has a VAT paid status; or operate in EU waters under the Temporary Admission [TA] regime in accordance with EU regulations meaning the yacht can
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