Taxes

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Taxes

Under the laws of the countries of incorporation for the vessel owning companies and/or of the countries of registration of the vessels, the companies are not subject to tax on international shipping income; however, they are subject to registration and tonnage taxes, which are included in Vessel operating expenses in the accompanying consolidated statements of income.

The vessel owning companies with vessels that have called on the United States during the relevant year of operation are obliged to file tax returns with the Internal Revenue Service. The applicable tax is 50% of 4% of U.S. related gross transportation income unless an exemption applies. Management believes that, based on current legislation the relevant vessel owning companies are entitled to an exemption under Section 883 of the Internal Revenue Code of 1986, as amended.