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TAXATION – SHIPPING
· upon the income derived by the shipowner of a Cyprus ship from the operation of such ship (with the exemption of any fishing enterprises using Cyprus as their base);
· upon the dividends paid to the shareholder or the members of a corporation, out of profits made from the operation of a Cyprus ship.
GOVERNMENT FEES AND TAXES
The fees are expressed in EURO (€). The registration fees are calculated as follows:
In case of a deletion of the ship from the Register of Cyprus Ships before the expiration of the year for which tonnage tax has been paid for, the amount paid in excess shall be reimbursed to the shipowner or shall be credited against any other amounts due by any other ship of the same shipowner upon his application.
B. Fees for the Transmission of a mortgage
C. No fee is payable for the discharge of mortgages.
No fee is payable for the deletion of ships. However, all other statutory fees and taxes due or in arrears at the time of the vessel’s deletion should be paid.
· registration fees;
· tonnage tax for 6 months;
· fees for obtaining a licence to install and operate a wireless telegraphy and/or telephony station;
· fee for the issue of the provisional certificate of Cyprus Registry.
· one half of the registration fees;
· tonnage tax for 3 months.
· fee for the issue of the certificate of Cyprus Registry;
· payment of any other statutory fees and taxes due or in arrears at the time of the permanent registration of the vessel.
No other fee is payable if the permanent registration takes place before the expiry of the provisional registration period.
The following fees and taxes are payable each year:
· tonnage tax;
· fees for the renewal of the licence to install and operate a wireless telegraphy and/or telephony station.
The initial registration fees for the parallel registration of a foreign vessel under the Cyprus flag (parallel-in registration) are 20 percent higher than those applicable to the provisional or permanent registration of the vessel. If the foreign vessel under the Cyprus flag is deleted and thereafter re-registered and the chartering is effected to the benefit of the same charterer prior to the deletion, the re-registration fees are reduced by 50 percent. There is no increase in the tonnage tax or other dues payable and the vessel is subject to the same financial obligations as other Cyprus ships.
A Cyprus ship registered in parallel in a foreign register (parallel-out registration) has the same financial obligations as all other Cyprus ships, with the exception of the fees for the issue or renewal of the radio licence. If the vessel is deleted from the Cyprus Registry prior to the termination of her status of parallel-out registration, that part of the tonnage tax which is proportional to the period from her deletion until the termination of her status of parallel registration is reimbursed upon application.
The financial obligations of vessels (Cypriot and foreign) registered in parallel are payable in advance for the entire period of the parallel (bareboat) registration.
The above information was kindly provided by the Department of Merchant Shipping of Cyprus
Cyprus Financial Assistance Programme – Memoranda signed with the EU and the International Monetary Fund