Shipping-Specialized Accounting (Vessels)

Accounting, tax and lender reporting for vessel SPCsWe handle everything from closing to financial-ratio reporting for lenders

Service Overview

Vessels acquired through ship finance must, at the lenders' request, be held through a structure of one special purpose company (SPC) per vessel. These SPCs are set up in flag-of-convenience jurisdictions such as Singapore, the Marshall Islands and Panama, and must meet each jurisdiction's accounting, tax and administrative obligations. Shipping-Specialized Accounting is a specialist service that covers the incorporation of vessel SPCs, building their corporate substance, vessel-level accounting, financial reporting to lenders, support for the parent company's consolidated closing, and response to global tax regulation.

With the introduction of the global minimum tax (BEPS Pillar 2) and the tightening of the Marshall Islands Economic Substance Requirements (ESR), running paper companies that exist only on paper is no longer possible. Non-compliance with ESR brings heavy sanctions — a fine of $50,000 for a first breach and $100,000 for a second, or dissolution of the company. At the same time, lenders require quarterly monitoring of financial ratios (covenants) and an annual audit report, and the parent company needs accurate financial data from its overseas SPCs to prepare IFRS consolidated financial statements.

Our Principles

Operating Principles

We analyze your vessel portfolio and financing structure to design the right SPC management framework. We provide integrated support for financial and accounting issues across the full life cycle of ship finance — corporate substance, vessel-level accounting, lender reporting, the parent company's consolidated closing and global tax defense. We offer integrated coverage regardless of jurisdiction, whether Singapore, the Marshall Islands or Panama, and build both the IFRS consolidation package the parent company's CFO needs and the transfer pricing (TP) defense logic.

Key Services

Who This Service Is For

Shipowners holding vessel SPCs overseas (Singapore, the Marshall Islands, Panama, etc.)
Shipping companies that must meet financial reporting obligations to ship-finance lenders
Shipping companies that need to respond to the global minimum tax (BEPS Pillar 2) and Economic Substance Requirements (ESR)
Companies that need overseas SPC financial data to prepare the parent company's consolidated financial statements
Shipping companies setting up new vessel SPCs and building corporate substance
Companies that need transfer pricing (TP) documentation between the parent and its SPCs and preparation for tax audits

Services Provided

Incorporation and ongoing maintenance of vessel SPCs in Singapore, the Marshall Islands and Panama
Provision of resident (nominee) directors and preparation of board minutes
Annual Marshall Islands ESR filings and building CIGA evidence
Vessel-level bookkeeping of revenue and costs (charter hire, operating expenses, etc.) and financial reporting
IFRS conversion packages for the parent company's consolidated financial statements
Quarterly monitoring and reporting of financial ratios (covenants) required by ship-finance lenders
Support for statutory audits and submission of audit reports
Application for and maintenance of Singapore shipping income tax exemptions (MSI-AIS, Section A/F)
Transfer pricing (TP) documentation of charter hire between the parent and its SPCs, and tax audit defense
Impact analysis and response strategy for the global minimum tax (BEPS Pillar 2)

An accounting and tax framework that reflects your industry is the foundation for closing and decision-making.We provide hands-on reviews tailored to your industry and operating structure.