In 1996, the Netherlands introduced a special tax facility for shipping companies. Dutch fiscal law allows shipping companies that are subject to tax in the Netherlands to make a choice. They may choose either the regular system of taxation on basis of actual profits made, or the much more attractive (in most cases) tonnage-based taxation: a low lump-sum tax based on the net tonnage of the ships operated, regardless of the actual profits made. This favourable tax regime, known as the Dutch tonnage tax scheme, has resulted in an effective tax rate comparable to that of open registers.