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Sarnia Yachts Limited

Navigating the Complex World of Yacht Ownership & Operation

Sarnia Yachts has provided yacht ownership and operational services for over 40 years. With offices in Guernsey and Malta, we formulate and deliver the best, long-term solutions for owners of both private and commercial yachts.
NEW Sarna 160x160

Location Information

PO Box 657
La Plaiderie House
St Peter Port
GY1 3PR
Channel Islands

Regions Serviced

  • World Wide

Products / Services

  • Yacht Fiduciary
  • Corporate Structures
  • EU VAT
  • Yacht Administration Services
  • Crew and Payroll
  • Consultancy and Guidance
  • Flag Registration

Description

Sarnia Yachts provides a diverse and flexible range of services including yacht administration, VAT management, flag registration, crew employment and payroll and corporate yacht ownership.

Trusted by yacht owners, trust and family offices, lawyers and yacht brokers, Sarnia is one of the longest standing fiduciaries in the marine sector with a team of 26 in the Guernsey office and a further two in our new Malta office.

Yacht ownership and operations have become highly regulated with numerous laws and potential pitfalls to be avoided. It’s the details that make the difference and Sarnia guides you through these complexities so you can relax and enjoy your yacht with total peace of mind.

Sarnia is licensed by the Guernsey Financial Services Commission to provide fiduciary services and Malta Financial Services Authority to provide corporate services.

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Charter Yachts and Withholding Tax

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Latest News

Withholding tax is being applied to charters in some EU countries and Sarnia Yachts is urging yacht owners to consider restructuring arrangements to avoid being caught out.
Withholding tax of up to 33% is being applied to charters in some EU territories and yacht owners established in territories such as Cayman, BVI, Isle of Man, Guernsey and Jersey could be liable. The list of countries currently applying this tax includes France and Spain, but more countries are likely to come online shortly. France and Spain.
Spain and France implement the tax in different ways; however, they both trigger the tax when the yacht-owning company is established in a territory without a double tax treaty with the country where the yacht is put at the disposal of the charterer.

New French Enforcement

The French tax authorities are now applying the tax to the balance of funds after deduction of commissions transferred from French businesses to yacht-owning companies from non-tax treaty territories. The French management or charter company is responsible for paying the withholding tax over to the French government.

Spanish Fiscal Agents

In Spain and the Balearics, withholding tax has been applied since 2014 and is collected by the fiscal agent who has been appointed by the yacht owner as part of the pre-requisite arrangements before any yacht can commence charter operations.

Detrimental Effect

Demands by the French authorities have reached into the millions of euros, and this has had a detrimental effect on French businesses. The ECPY and MYBA, negotiating on behalf of the brokerage community, are addressing this issue in the highest French courts on the basis that it is the yacht owners who should be liable for these taxes and not the French charter and management companies.

Restructuring Advice

Sarnia Yachts advises that migration of the existing yacht-owning company or establishing a new company in a more favourable jurisdiction that does not trigger withholding tax issues is now a preferred option.
Malta should be considered as a territory for migration or to set up a new yacht-owning company and Sarnia's Malta office is on hand to help with such matters. Other factors to consider in the restructuring arrangements include:
• Crew employment and payroll; • Suitability of flag; • The yacht’s “in free circulation” status; • Financial arrangements and the physical location of the yacht.

Looking ahead to 2017

Looking ahead to the 2017 season, any yacht owners concerned about how withholding tax might affect them should get in touch with Bruce Maltwood or Darryl Sharman

Links & References

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