355SV: Taxation of Ships and Vessels (2024)
Massachusetts · Massachusetts DOR · Used for tax years 2024
Massachusetts Form 355SV is a corporate tax return used to calculate the ship and vessel excise tax. It reports ownership percentages, the value of the corporation’s interests in ships or vessels, accumulated depreciation, and the resulting tax. The form must be filed electronica
Who files this form
Massachusetts business corporations subject to the special ship and vessel excise tax must file Form 355SV.
The instructions describe corporations organized under Massachusetts law with a place of business in Massachusetts that hold an interest in qualifying ships or vessels. The ships or vessels must:
- Be engaged in interstate or foreign carrying trade, or exclusively in fishing.
- Be documented and carry papers under U.S. law.
The tax is based on the value of the corporation’s interest in those ships or vessels.
When it's due
The Form 355SV instructions require filing and full payment by the 15th day of the fourth month after the taxable year closes.
The supplied text does not print a specific calendar-date deadline for tax year 2024. Although this is the 2024 form, its filing-date discussion says that 2023 calendar-year returns and payments normally due April 15, 2024, were timely if filed or paid by April 17, 2024. Do not treat that as the deadline for tax year 2024.
What you'll need
Have the following information ready:
- The corporation’s name, federal identification number, phone number and mailing address.
- The taxable period covered by the return.
- Each qualifying ship or vessel’s registered name.
- The corporation’s ownership percentage and value of its interest in U.S. dollars.
- Accumulated depreciation for each ship or vessel.
- The president’s and treasurer’s signatures and dates for the declaration.
For an amended return, attach a statement explaining why you are amending and the basis for the amendment.
How to file
File electronically. Paper returns will not be accepted. Electronic filing requirements also apply to amended returns and disputes.
Report the qualifying ships or vessels, total the value of the corporation’s interests and accumulated depreciation, then subtract depreciation from the total value. Multiply the result by 0.0033333 to calculate the tax on line 5.
Submit full payment of the tax due with the return. The instructions require electronic payment.
For electronic filing questions, call 617-887-6367. See the Massachusetts DOR electronic filing and payment requirements for further information.
Common mistakes
- Sending a paper return: The form warns that paper returns will not be accepted.
- Entering negative or excessive depreciation: Column d must be a positive amount and cannot exceed the value of the corporation’s interest.
- Leaving out the amended-return explanation: An amended return must include a statement explaining the reason and basis for the amendment. When correcting a line item, complete the return with corrected information and fill in the Amended Return oval.
Questions people ask
Can I report more than one ship or vessel on this form?
Yes. Form 355SV allows multiple ships or vessels on a single form.
How is the tax calculated?
Subtract total accumulated depreciation from the total value of the corporation’s interests, then multiply the result by 0.0033333. The instructions describe the tax rate as one-third of one percent.
Can an amended return increase or decrease the tax?
Yes. An amended return can increase or decrease the tax. Generally, it must be filed within three years of the date the original return was filed. Include an explanation statement and file electronically.
Who signs the declaration?
The corporation’s president and treasurer each sign and date the declaration. They state under penalties of perjury that, to the best of their knowledge and belief, the reported items of value are true and accurate.