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Cyprus Tonnage Tax Law - Extended

The Cyprus Tonnage Tax, and original Merchant Shipping Law 44(I)/2010 (Fees and Taxing Provisions) is set to be officially extended by the Cypriot legislature for the following years and until the year 2029 after receiving review and re-approval by the European Commission.

Furthermore with the extension and amendment of the said law comes a clearer and more concise definition of a "Qualifying Ship" and the categories of ship that may qualify for tonnage tax, and Maritime Transport, in accordance with the EU Guidelines on State Aid to Maritime Transport.

Provisions relating to Bareboat Charters are also included and rules relating to intra-group charters.

Environmental rewards by way of a reduction of the Tonnage Tax by up to 30% by Cyprus flag ships which have adopted mechanisms to reduce the effects of climate change, shall also be introduced.

Of course references to the Department of Merchant Shipping and Ministry of Communications and Works have now been changed to reflect the newly established Deputy Ministry of Shipping (2018), which is the competent Ministry for shipping matters, including ship registration and the taxation of Qualifying Owners, Charterers and Ship Managers.

COVID-19 coronavirus - Cyprus Shipping

As restrictions are being put in place for COVID-19 coronavirus epidemic, we want to take this opportunity to reassure clients of our business continuity, and the implementation of all procedures safeguarding public health and wellness. We are available to support and deliver services with the same high standards, and remain available at all times from the office or at home.

As for the Cyprus Flag, the Shipping Deputy Ministry remains fully operational and continues to provide its high-quality services without any disruption, so that all ships registered under the Cyprus flag will continue to operate as usual. Arrangements have been put in place to ensure the timely completion of registry and other transactions without any interruption and encourage the continuity of trade.

The Registrar of Cyprus Ships also assures all those concerned that a degree of flexibility will be permitted wherever this is deemed necessary. For further information please refer to the relevant circular no. 8/2020. In particular all documents relating to transactions are to be sent electronically, with originals to submitted in a sealed envelope.