The Estonian government is rejigging its shipping regulatory framework with a tonnage tax on the cards.

The Baltic nation has announced plans for a tonnage tax as an alternative to corporate income tax for shipping companies. Shipping lines will be able to decide whether to pay the typical 20% tax on withdrawn profits or a tonnage tax at a yet undetermined rate based on a vessel’s gross tonnage.

In other shake-ups to Estonia’s shipping set-up, the nation’s registry is going digital, allowing owners to register ships remotely in a bid to drive up tonnage on the local flag.