Fuel, berth, maintenance–all items that weigh down the budget when boat expenses are counted at the end of the year. Fortunately, there is a way to write them off: the occasional charter. Most of you will certainly know this open secret, but let’s recap everything you need to know practically.
Occasional rental
Here’s what you need to know about casual hiring, what it looks like and how it works, but most importantly, how to be in compliance and not get it wrong.
First of all, what is meant by rental?
This may seem like a trivial question, but in colloquial language the term “rental” is misused. We refer, for example, to classic dinghies without a license to be driven independently as “rental” dinghies. In reality, from a regulatory perspective, that is a rental. Rental, on the other hand, refers to the service that offers not only the boat but also the driving of the boat. In short, what is colloquially referred to as a “charter” or “skippered charter.”
What does occasional hire consist of?
In this particular case, “occasional” means rental done not as a stable economic activity, but as a method of encouraging recreational boating and nautical tourism, which therefore does not constitute a commercial use of the unit.
But how often is it “occasional”?
Up to 42 days a year. In the end, considering the typical summer season, from mid-June to mid-September, that’s about 90 days: it means having the opportunity to go out almost every other day. If you take out the days of inclement weather, that’s definitely a fair number to be able to “get back” on expenses without making it a full-blown business.
Who can do it?
The owner, whether an individual or a company (as long as its corporate purpose is not chartering or renting) or the user by way of leasing. The only requirement is to have held a boating license for at least three years.
With what kind of boat can this be done?
With any type of unit classified as a vessel. For completeness of information, it is also possible to do this with recreational vessels, but in this case the captain must hold the professional title.
Can the boat fly a flag other than the Italian flag?
No, it must be registered in the national registers.
What if I have a vessel?
The only option is to register it.
Well, I meet all the requirements, how do I get started?
Simply notify telematically via e-mail (no PEC), before each exit, the start of the chartering activity to the Internal Revenue Service and the territorially competent Port Authority.
What happens if I forget?
This better not happen: the penalties are very steep, as they should be, since some clever people try to get around the 42-day limit by “forgetting” some communications. They range from €2,066 to €8,263.
What documents should I keep on board?
Copies of notices, with their transmission receipts, and rental agreements.
What about insurance?
There are no specific regulations in this Decree, but it is a good idea to notify your Company that we are making occasional hire and provide adequate coverages to avoid unpleasant surprises in case of accidents.
How is the income from this activity taxed?
Income from rental activities is subject to a 20% substitute tax to be paid by Form F24.
Can I deduct expenses incurred, such as fuel?
No.
Can I bring more than one group at the same time?
Yes, a separate contract must be made to each one.
If the vessel is co-owned?
Each owner is required to make the relevant occasional rental report to the Agency, indicating the amount received related to his or her share.
What if I have a crew?
It remains in the hirer’s employ, and you have to extend the notification of the start of business to Inps and Inail as well.
But what if I want to use the occasional rental to make a business out of it instead of opening a specific company?
This was a method used to circumvent the need for professional titles for those opening charter businesses with boats over 10 meters. Now, with the qualification of Officer 2nd Class for pleasure craft, one should no longer see the need for this. Moreover, in the case of crew members, since they cannot deduct the costs, the convenience is far diminished. Rightly, this system must remain an opportunity to enjoy the boat while containing costs, and not to speculate.
Stefano Monfroni
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