Deputy Minister Natasa Pileidou stated in a recent interview “Cyprus has not only succeeded in coping successfully with global competition but it also achieved the continued growth of its shipping industry. All of the above demonstrate the great prospects of shipping and maritime industry in Cyprus has for further growth and development ”
Cyprus has a unique location in the Eastern Mediterranean and is conveniently located in the hub of three continents: Europe, Asia and Africa. The ideal location of the island has played a prominent role in its development into a thriving international business and shipping center.
The maritime industry is one of Cyprus’ most successful export services, and with over 160 shipping companies, the island is considered one of the top global hubs for ship owning and shipmanagement services. The country’s maritime capital, Limassol, is home to some of the world’s most influential names in shipping. Today, Cyprus is the third largest ship management centre worldwide and represents one fifth of the worlds fleet.
The privileged position and tax system of Cyprus has turned the country into a shipping magnet deriving shipping companies from Norway, Greece, Dubai and South Korea creating the need to establish a Deputy Ministry of Shipping which will substantially assist towards the further development of Cyprus shipping and the economy.
- The ship owner companies and management companies are taxed according to the net tonnage of the ship and not on the basis of the local corporate tax (12.5%)
- The tax obligations of the company are controlled by the Department of merchant shipping and not the Tax registrar
- Ensures the total exemption of the profits from the corporate tax and the tax arising from the sharing of the profits (dividends)
- Allows the operation of a variety of activities to a company/group of companies, as well as the taxation of the shipping activities on the tonnage tax law and any further activities based on the corporate tax at 12.5%
- Provides the transparency of the registered corporations and vessels list
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