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Only positive developments on the way for Cyprus’ tonnage tax system

October 11, 2019 at 9:35am
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Negotiations in Brussels between the Deputy Ministry of Shipping and the European Commission over the renewal of the Mediterranean island’s tonnage tax system are expected to conclude within the next couple of months. And the forecast is positive, insiders told Phileleftheros.

One also said that this piece of legislation, which updates existing and offers additional financial incentives to shipping activities in Cyprus, is expected to be renewed with no negative amendments or any additional cost provisions.

The tonnage tax system extends the favourable benefits applicable to owners of Cyprus flag vessels and ship managers, to owners of foreign flag vessels and charterers.

It also extends the tax benefits that previously only covered profits from the operation of vessels in shipping activities, to cover profits from the sale of vessels, interest earned on funds used other than for investment purposes and dividends paid directly or indirectly from shipping related profits.

At the same time, the Deputy Ministry is expecting the Finance Ministry to give the green light to their proposed criteria for citizenship by investment in the shipping sector. A detailed proposal has been submitted before the Ministry for the framework of such an investment.

On international interest in registering ships in the Cyprus registry, Deputy Minister of Shipping Natasa Pilidou yesterday told her audience at a presentation of the Centre for Excellence in Maritime and Maritime Research, Innovation and Technology that “discussions are ongoing in view of our new price system which has abolished the initial boat registration fee and this has helped a lot.”

“There is also interest from companies operating in international shipping that do not currently have a presence or have just a little presence in Cyprus.”

Pilidou also welcomed the presentation of the CMMI / MaRITeC-X program, which has evolved into the Institute of Marine and Maritime Technology, saying:  “We believe it will help shipping to evolve and move on to the next stage.”

 

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Deputy Minister for shipping ascertains rising confidence in the Cypriot flag