Category: Shipping


Shipping Tonnage Tax System – Environmental Incentive

in Shipping, Tax

The Shipping Deputy Ministry (SDM) of Cyprus has announced environmental incentives for the Cyprus Tonnage Tax System.

It provisions a reduction of tonnage tax up to 30% for owners of Cyprus and Community flagged ships that use mechanisms for the environmental preservation of the marine environment and the reduction of the effects of climate change.

Environmental incentives are the following:

  1. Energy Efficiency Design Index
  2. IMO Data Collection System (D.C.S.)
  3. Use of alternative fuels

The outlined environmental incentives are cumulative and as per the Merchant Shipping (Fees and Taxing Provisions) Laws of 2010-2020, each ship can only receive a maximum 30% rebate on the Annual Tonnage Tax. An eligible ship for any of the environmental incentive is a ship that engaged in a qualifying shipping activity as per the Merchant Shipping (Fees and Taxing Provisions) Laws of 2010-2020.

Detailed information on the incentives can be found here.


Tonnage Tax – Cyprus Registry Maintenance Annual Fee Payment Extension

in 2018, Shipping, Tax

Both the (a) “Annual Fee” under section 4(2) of the Cyprus Registry Maintenance Annual Fee Law and the (b) “Tonnage Tax” for Cyprus ships under the Taxation of Owners of Cyprus Ships Notification of 2012 (P.I.137/2012) section 9 of the Merchant Shipping Law of 2010 (Law 44(I)/2010); are payable on the 31st of March each year.

The Cyprus Department of Merchant Shipping has decided to extend the date of payment for both the tonnage tax and annual fee of Cyprus flag ships to 2nd of April, given the fact that this year the 31st of March is a Saturday. Therefore the next working date is the Monday, 2nd of April 2018.