Corporate Service Providers

Depending on which jurisdiction you are based in, there may be an employer’s liability to social security contributions. You do not need to be the employer of the crew to be regarded as the employer in certain jurisdictions. It may be just enough for you to be the payer of wages.

If you are the employer or the payer of wages and a crew member has a liability to social security contributions, you need to establish whether or not you are responsible for employer’s social security contributions. If you do have a liability you will be responsible for deducting and paying the social contribution to the relevant authority.

If you are based in the European Economic Area, the Isle of Man or any other jurisdiction that has social security legislation, you may have an employer’s liability.

All of the following have to be considered by the corporate service provider:

• The nationality/domicile and residence of the crew
• The flag state of the yacht
• The jurisdiction from where salaries are paid
• The structure from where the salaries are paid
• The residence of the yacht owner or owning structure
• The residence of the corporate service provider
• The permanent berth of the yacht