Transportation Tax Clause for Charterparties
4 July 2025
1 The following taxes shall be payable by the Owners (Owners’ Tax):
(i) Taxes, fees and other charges levied by the flag state of the Vessel by virtue of its registration;
(ii) Taxes, fees and other charges levied on the income of the Owners by their state of domicile.
2.1 Subject to paragraph 1 the following taxes shall be payable by the Charterers (Charterers’ Tax):
(i) Taxes, fees and other charges payable to any state, authority or public body (Tax Authority) on or assessed by reference to freight, cargo, bunkers (if provided by Charterers), charter hire or earnings of the Vessel;
(ii) Taxes, fees and other charges payable to any Tax Authority by reason of the Vessel having called at the state in question on the orders or the business of the Charterers pursuant to this or any previous charterparty between the parties; and/or
(iii) Any other tax which is not an Owners’ Tax.
whether or not levied during the period of this Charterparty and/or known by either party during the period of this Charterparty.
2.2 Each party agrees to provide to the other and/or the Tax Authority all documentation and/or information relating to the Charterers’ Tax required by the other party and/or Tax Authority upon request within such time as may be specified in the request and in order to allow either party to comply with any deadline(s) set by the Tax Authority.
2.3 The Owners may at their option by written notice require the Charterers’ Tax to be paid directly by the Charterers to the Tax Authority.
2.3.1 Where the Owners require the Charterers to pay the Charterers’ Tax, it shall be paid by the Charterers within the applicable deadline and Charterers shall promptly inform the Owners in writing of the amount of the tax demand, the amount paid and date of payment together with evidence of payment.
2.3.2 Where, the Owners pay the Charterers’ Tax in the first instance (whether directly or indirectly) either because they have elected to do so or where the Charterers have failed to pay the Tax Authority notwithstanding notice requiring them to do so, Charterers will reimburse Owners any sums paid on Charterers’ behalf upon receipt of their first written demand with evidence of payment.
2.4 Charterers shall indemnify Owners and hold them harmless from any loss, consequence or damage arising from Charterers’ failure to pay any Charterers’ Tax, including any fines or penalties thereon and all losses arising out of the arrest or detention of the Vessel or other vessels owned by the Owner as a result of non-payment of the Charterers’ Tax.
3 Any statutory or express time bar provision applicable to or provided in this Charterparty shall not apply to claims by Owners for breach of this clause by Charterers and/or for reimbursement of Charterers’ Tax under this clause.
