This Tax Liability Statement ("Statement") is made and entered into on this [Date], by and between:

Principal/Owner: [Full Legal Name]
Principal/Owner Address: [Street Address, City, State, Postal Code]
Principal/Owner Contact Information:

  • Phone Number: [Phone Number]
  • Email Address: [Email Address]

Vessel Buyer/Purchaser: [Full Legal Name]
Vessel Buyer/Purchaser Address: [Street Address, City, State, Postal Code]
Vessel Buyer/Purchaser Contact Information:

  • Phone Number: [Phone Number]
  • Email Address: [Email Address]

This document serves as a statement regarding the tax liabilities associated with the transaction of the vessel detailed below.

1. VESSEL INFORMATION

The Vessel for which tax liability is being addressed is described as follows:

  • Vessel Name: [Vessel Name]
  • Vessel Type: [Type of Vessel (e.g., Yacht, Cargo Ship, Fishing Vessel)]
  • Hull Number or IMO Number: [Hull Number or IMO Number]
  • Registration Number: [Vessel Registration Number]
  • Year of Manufacture: [Year]
  • Place of Registration: [Place/Port of Registration]

2. TAX OBLIGATIONS AND LIABILITIES

This section outlines the various taxes, fees, and liabilities that apply to the sale, transfer, or ownership of the vessel.

a. Sales Tax

  • Applicable Sales Tax Rate: [Rate of Tax]
  • Amount of Sales Tax Due: [Amount of Sales Tax Due]
  • Tax Authority: [Tax Authority Name]
  • Tax Filing Deadline: [Date by which the tax must be filed]
  • Jurisdiction: [State or Country where tax is applicable]
  • Payment Instructions:
    • Payment Method: [Cash, Check, Bank Transfer, etc.]
    • Payment Address: [Address where payment must be sent, if applicable]

b. Value Added Tax (VAT)

  • Applicable VAT Rate: [VAT Rate if applicable]
  • Amount of VAT Due: [VAT Due Amount]
  • Jurisdiction: [State/Country of VAT Collection]
  • Payment Deadline: [Date]

c. Registration Fees

  • Registration Fee Amount: [Amount for Vessel Registration]
  • Applicable Tax Jurisdiction: [Location or Port of Registration]
  • Filing Instructions: [Instructions for paying registration fee]
  • Due Date: [Date by which registration must be filed or paid]

d. Custom Duties

  • Applicable Customs Duties: [Custom Duty Rate or Amount]
  • Customs Duty Authority: [Name of Customs Authority]
  • Due Date: [Customs Duty Filing Deadline]
  • Payment Instructions: [How and where to pay customs duties]

e. Income Tax

  • Applicable Income Tax: [Applicable Income Tax Rate on the sale of the vessel or earnings from its operation, if any]
  • Income Tax Authority: [Tax Authority Name]
  • Filing Deadline: [Date by which taxes should be reported and paid]
  • Payment Instructions: [How and where to pay income tax]

f. Other Applicable Taxes and Fees

  • Additional Taxes: [Any other taxes or fees related to the vessel sale, operation, or transfer]
  • Amount Due: [Amount for any other taxes]
  • Tax Authority: [Relevant Authority]
  • Payment Deadline: [Payment Date or Filing Date]

3. RESPONSIBLE PARTY

The parties involved in this vessel transaction acknowledge the tax liabilities as follows:

  • Principal/Owner (Seller): The seller acknowledges and affirms that any tax obligations prior to the transfer of the vessel have been duly paid and accounted for, including but not limited to the sales tax, registration fees, and any income taxes due on prior earnings related to the vessel.

  • Vessel Buyer/Purchaser: The purchaser acknowledges that the following taxes are their responsibility upon the purchase of the vessel:

    • Sales tax or VAT applicable upon purchase.
    • Registration fees due at the time of registration.
    • Customs duties if applicable.
    • Any other taxes, such as income tax on the future operation or income from the vessel.

The Principal and the Buyer agree that they will indemnify each other in case any tax liability arises as a result of non-payment or underreporting of applicable taxes.

4. TAX REPORTING AND PAYMENT COMPLIANCE

Both parties agree to comply with all tax reporting and payment obligations required by law in the relevant jurisdiction(s). Each party shall file their respective tax returns in a timely manner and ensure payment is made on or before the applicable due dates.

  • Principal’s Responsibilities:

    • Submit proof of any tax payments made prior to the sale of the vessel.
    • Ensure that all required forms are submitted to tax authorities in the relevant jurisdiction.

  • Buyer’s Responsibilities:

    • Ensure that any required payments, including sales tax, registration fees, and customs duties, are paid.
    • Submit any necessary documentation to tax authorities to finalize the registration and transfer of the vessel.

5. CERTIFICATION AND ACKNOWLEDGMENT

By signing below, both the Principal and Buyer acknowledge their understanding of their tax responsibilities related to the transaction of the vessel, including the obligation to pay and file any taxes, fees, or duties required by applicable law.

Principal/Owner (Seller) Signature:

  • Name: [Principal’s Full Name]
  • Signature: ________________________
  • Date: [Date]

Vessel Buyer/Purchaser Signature:

  • Name: [Buyer’s Full Name]
  • Signature: ________________________
  • Date: [Date]

6. GOVERNING LAW AND DISPUTE RESOLUTION

This Tax Liability Statement shall be governed by the laws of the jurisdiction where the vessel is registered or located. In case of any disputes arising from the tax obligations outlined here, both parties agree to resolve the matter through:

  • Arbitration or Mediation (depending on agreement)
  • Location: [City/Country]
  • Arbitrator/Mediator: [Arbitration or Mediation Firm Name, if applicable]

7. ADDITIONAL NOTES

  • This document is a statement of the tax obligations arising from the sale, transfer, and ownership of the vessel and is not a tax filing document.
  • The Principal and Buyer should consult with tax professionals to ensure compliance with all applicable laws and regulations.