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| Supporting ships and sailors working on ships flying the Danish flag |
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Danish government has taken a decision to support ships and sailors who work on ships flying the flag of Denmark, which is the seventh largest maritime industry in the world.
The Danish Shipping Shipowners' Organization has welcomed the government's decision to maintain tax breaks for seafarers under the Danish International Ship Register (DIS). Under the DIS net salary system, shipowners pay their employees net salaries and keep the tax for themselves as a government subsidy.
Today, Denmark has the seventh largest maritime industry in the world, and more than 100,000 people work in the maritime group, according to the Danish Shipping Company.
Anne Stephenson, CEO of Danish Shipping, said: “It is very good that the government has decided to maintain the DIS system, also known as the seamen’s tax. “I see this as a very clear expression of the government’s awareness that Danish-flagged shipping is worth preserving and creates great value for Denmark and we should develop it, not dismantle it.”
Danish shipping companies strongly opposed the decision, warning that canceling the scheme would have major negative consequences for the country's shipping sector.
They point to several repercussions, including the uncompetitiveness of the Danish flag compared to other countries, such as Norway, Germany and Singapore, as well as a decline in the number of Danish sailors and other skilled personnel in the sector.
Some companies said the decision could lead to moving the company out of Denmark and changing the flags of ships, while unions warned that the cost-cutting measure would lead to job losses as owners change their flags abroad.
