International Shipping Income and Qualified Ancillary International Shipping Income activities shall be excluded when calculating GloBE income or loss for a CE. Where the computation of income from such activity results in a loss, the loss shall be excluded from the computation of its GloBE Income or Loss for that CE.
Income from international shipping activities means the net income earned by the CE from any of the following activities:
The transportation of passengers or cargo by ships that it operates in international traffic, whether the ship is owned, leased or otherwise at the disposal of the CE;
The transportation of passengers or cargo by ships operated in international traffic under slot-chartering arrangements;
Leasing a fully crewed and supplied ship for use in transporting passengers or cargo in international transport.
Leasing a ship on a bareboat basis for use in transporting passengers or cargo in international transport to another CE within the same MNE group.
Participation in a consortium, joint operation, or international operating agency for the transport of passengers or cargo by ship in international transport.
Sale of a ship used to transport passengers or cargo in international transport, provided the ship has been held for use by the CE for a minimum of one year.
Income from international shipping activities shall not include any net income earned from transporting passengers or cargo by ship via waterways within the State.
Qualified Ancillary International Shipping Income means the net income earned by the CE from any of the following activities:
Leasing a ship on a bareboat charter basis to another shipping enterprise transport Entity that is not a CE, provided the charter does not exceed three years.
Selling tickets issued by other shipping Entities for the domestic portion of an international voyage.
Leasing and short-term storage of containers or charging detention fees for delays in returning containers.
Providing services to other transport Entities such as engineers, maintenance staff, stevedores, catering workers, and customer service employees.
Investment income earned from investments that form an essential part of operating shipping activities in international transport.
In all cases, the activities mentioned above must be substantially related to the transport of passengers or cargo in international transport.