MSC Cruises, the world’s fourth largest cruise shipping group, is planning to place vessels under the British flag and enter them in the country’s tonnage tax, a move that would require it to manage and operate them from Britain, Lloyds List reports on its website.

The publication cited Guy Platten, CEO of the UK Chamber of Shipping, who had given a presentation to the All-Party Parliamentary Maritime and Ports Group in London.

“MSC Cruises is already in the process of doing so. I’ve had a recent conversation with another major shipping line which is considering moving its ships into the flag and tonnage tax. There are rumours of others too,” he was quoted as saying.

In addition to some vessels of the Carnival group, Royal Caribbean Cruises, Ltd (RCCL), the world’s second largest cruise shipping group that operates 14 of its ships under companies which have elected to be subject to the United Kingdom tonnage tax regime. None of them fly the British flag, however.

“Companies subject to UK tonnage tax pay a corporate tax on a notional profit determined with reference to the net tonnage of qualifying vessels. The requirements for a company to qualify for the UK tonnage tax regime include being subject to United Kingdom corporate income tax, operating qualifying ships, which are strategically and commercially managed in the United Kingdom, and fulfilling a seafarer training requirement,” RCCL said in its 2015 annual report.

“Failure to meet any of these requirements could cause us to lose the benefit of the tonnage tax regime which will have a material effect on our results of operations,” the company pointed out.

MSC Cruises currently operates its fleet under the flag of Panama. The Lloyds List report said the company is building new UK head office in Uxbridge west of London to cater for its expanding activities in the country.