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A company has enquired whether it may claim an excise duty exemption when transferring new vessels to a related entity for chartering purposes. The Directorate-General for Taxes (DGT) has ruled that this is possible, provided the transferee company uses the vessels exclusively for rental and the original owner retains no rights of use.
This ruling clarifies the conditions under which excise duty exemptions can be applied to vessels transferred between related parties, specifically requiring the exclusive use of the vessels for commercial chartering by the transferee.
The tax team reviews your specific situation.
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