ππ‘π² πππ π’π¬πππ« ππππ‘ππ¬ ππ§π πππ¬π¬ππ₯π¬ ππ§πππ« ππ‘π ππ²π©π«π’π¨π π π₯ππ ?
- Symeon Pogosian LLC
- Jan 27, 2024
- 2 min read
All vessels utilized in navigation, excluding those powered by oars, are eligible for registration in Cyprus. This eligibility is contingent upon compliance with age and type-related prerequisites outlined in the Official Government Policy and the ownership criteria stipulated in the Merchant Shipping (Registration of Ships, Sales and Mortgages) Law of 1963, as amended.
ππ¨π§π§ππ π πππ± ππ²π¬πππ¦: π πππ«ππππ π’π πππ―ππ§πππ π ππ¨π« πππ«π’ππ’π¦π ππ¨π¦π©ππ§π’ππ¬
Cyprus boasts a unique advantage for companies engaged in international maritime transport through its tonnage tax system, offering a special reduced tax that replaces corporate tax. Valid until December 31, 2029, this system allows companies to choose a tax based on the net tonnage of their fleet, providing an alternative to conventional profit-based taxation.
Shipowners of Cyprus-flagged vessels automatically enter the tonnage tax system, with a commitment to remain for 10 years. Early withdrawal incurs penalties, making it crucial for shipowners to assess the long-term benefits against potential consequences.
The tonnage tax system extends its coverage to profits from shipping operations, management, dividends, sale of the ship, and interest earned on working capital or ship-related financing. Understanding the scope is vital for companies operating within this taxation framework.
ππππ’ππ’π¨π§ππ₯ πππ± πππ§πππ’ππ¬: πππ²π¨π§π ππ¨π§π§ππ π πππ±
Cyprus offers a spectrum of tax advantages, including no estate duty on inheritance, no income tax on officers' and crews' wages, low tonnage tax based on gross tonnage, and no stamp duties for ship mortgage deeds or security documentation. The country has also established double tax treaties with over 43 nations, enhancing its appeal as a maritime hub.
In addition to tax incentives, Cyprus provides an attractive and cost-effective registration process, low operating costs for locally owned companies, EU flag status with access to the European economic area, and adherence to international maritime conventions on pollution and safety.
Comments