Title 26 — Internal Revenue CodeRelease 119-73

§1352 Alternative Tax on Qualifying Shipping Activities

Title 26 › Subtitle Subtitle A— Income Taxes › Chapter 1— NORMAL TAXES AND SURTAXES › Subchapter R— Election To Determine Corporate Tax on Certain International Shipping Activities Using Per Ton Rate › § 1352

Last updated Apr 6, 2026|Official source

Summary

Shipping companies that elect the tonnage tax regime figure their corporate income tax in two parts. They pay the regular corporate tax on their non-shipping income, plus a separate tax on their qualifying shipping operations equal to the highest corporate tax rate multiplied by a notional shipping income based on ship size rather than actual profits.

Full Legal Text

Title 26, §1352

Internal Revenue Code — Source: USLM XML via OLRC

In the case of an electing corporation, the tax imposed by section 11 shall be the amount equal to the sum of— (1)

(2)a tax equal to—

(A)the highest rate of tax specified in section 11, multiplied by

(B)the notional shipping income for the taxable year.

Legislative History

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

Section applicable to taxable years beginning after Oct. 22, 2004, see section 248(c) of Pub. L. 108–357, set out as an

Effective Date

of 2004

Amendments

note under section 56 of this title.

Reference

Citations & Metadata

Citation

26 U.S.C. § 1352

Title 26 — Internal Revenue Code

Last Updated

Apr 6, 2026

Release point: 119-73