Athena Chrysostomou wista med conference presentation 2012
WHY CYPRUS ?AN OPTIMAL BUSINESS BASE Shipping in Cyprus and Related Legal AffairsAthena Chrysostomou,Maritime Affairs Officer,Department of Merchant ShippingSaturday 23 June 2012,Le Meridien Hotel, Limassol
Cyprus Registry: Fleet of 1840 vessels exceeding 22 milliongross tonnage Ranks 3rd in terms of tonnage among the EUMember States merchant fleet Ranks 10th worldwide
Part 1: Registration of ships in the Registerof Cyprus Ships Part 2: Tax Incentives Part 3: Other Shipping Related Incentives
Part 1- Registration of ships in the Register of Cyprus Ships Ownership Requirements: Citizens of the EU/EEA, or EU/ EEA registered legal entities, or Non EU/ EEA registered legal entities controlled by EU citizens.
Part 1- Registration of ships in the Register of Cyprus ShipsGovernment Policy on the Registration of Ships (DMS Circular 12/2012 dated 7.3.2012) Related conditions Maximum Entry inspection Additional inspection Type of ship age limit required required Yes YesCargo ships and Cargo High Speed Craft No ≤ 25 years if ≥ 15 yearsPassenger ships and Passenger High Speed YES if 2 years ≤ Age ≤ 10 years YesCraft engaged on international or short No Biennialinternational voyages if ≥ 30 years YES if Age > 10 years AnnualPassenger ships and Passenger High Speed YES if 2 years ≤ Age ≤ 10years YesCraft engaged on domestic voyages within No Biennialthe territory of a State, other than Cyprus if ≥ 25 years YES if Age > 10 years AnnualPassenger ships and Passenger High Speed Yes No In order to operate theyCraft engaged on domestic voyages within No are required to be inspectedthe territory of Cyprus if ≥ 20 years and certified annually“Cargo ship” means a ship which has been constructed or adapted for the purpose of carrying cargo in any form.“Passenger ship” means a ship which has been constructed or adapted for the purpose of carrying fare-payingpassengers.
Part 1- Registration of ships in the Register of Cyprus Ships Types of Registration: Provisional Registration Permanent Registration Parallel –In (Bareboat Charter-in) Registration Parallel –Out (Bareboat Charter-out) Registration
Part 2- Tax Incentives New Tonnage Tax System (TTS)-The Merchant Shipping (Fees and Taxing Provisions) Law of 2010 (Law 44(I)/2010) Simplified tonnage tax system approved by the European Commission as compatible with the requirements of the EU acquis; Cyprus is the only open EU Registry achieving the approval of such a tax system, providing a competitive advantage against other Member States; Rates applicable to ship managers are 25% of those applied for ship owners and charterers.
Part 2- Tax IncentivesThe new tonnage tax system offers following taxadvantages:Total exemption from income tax on: Income from the operation of a qualifying shipengaged in a qualifying shipping activity Dividends paid directly or indirectly out of suchincome Interest earned on working capital Income from the sale of a qualifying ship
Part 3- Shipping Related Incentives Competitive ship registration costs and fees; No crew/ officers nationality restrictions; Full protection for financiers and mortgagees; Signatory to all the international maritime conventionson safety, security and pollution prevention; White List of the Paris and Tokyo MOUs; Exclusion from List of Targeted Flag States of USCoast Guard; 23 Merchant Shipping Bilateral Agreements; 45 Double Tax Avoidance Treaties; Reliability and problem solving Capacity of DMS.
Part 3- Shipping Related Incentives Reliability and problem solving Capacity of DMS 365 days per year service; Competent officers and surveyors available 24 hours/ day; Offices in Piraeus, Hamburg, Rotterdam, London, New York and Brussels.
The Protection of Cyprus Ships Against Acts ofPiracy and other Unlawful Acts Law of 2012(Law 77(I)/2012) was published in the OfficialGazette on 15 June 2012 to enhance thesecurity of Cyprus ships whilst at sea.