EU extends Cyprus’ tonnage tax scheme

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The European Commission approved the extension of Cyprus ‘ tonnage tax scheme for ship ownership, ship management and ship chartering activities.

The industry celebrated the extension as a major achievement.

Cyprus was the first open registry to have an EU-approved Tonnage Tax System (TTS), and this system has now been expanded for the next ten years following comprehensive agreement and consultation between the Deputy Shipping Ministry of Cyprus and the Commission.

The extension provides stability to current and future Cyprus-flagged shipping companies or those operating in Cyprus, as well as promoting vessel registration in Europe.

“The European Commission’s approval of our fair and transparent TTS, which has been in effect for ten years and is now extended for another ten years, demonstrates our contribution to the sustainable growth of European shipping,” said Vice-Minister of Shipping Natasa Pilides “The extension also allows us to continue our plan for the sustainable growth of the Cy industry.

“We are committed to providing a secure, efficient and forward-thinking registry that will appeal to all shipowners, managers and charterers, and we are confident this prolonged system will help increase our fleet’s tonnage.

“The number of ships registered under the Cyprus flag and the number of companies under the Cyprus TTS are steadily increasing and we are committed to continuing this trend.” Ranked among the top international fleets, Cyprus has over 1,000 ocean-going vessels with a total gross tonnage exceeding € 24 m.

In an announcement, the Cyprus Shipping Chamber (CSC) said: “This great achievement is an indication of close cooperation and coordinated efforts between shipping deputy minister, other government / state agencies, the Cyprus Shipping Chamber and the Cyprus Union of Shipowners.” It has ensured the viability of the Cyprus shipping registry and the shipping industry. “Today Cyprus Shipping will continue its productive path very competitive and at the same time fully compliant with the European acquis, Cyprus shipping tax system, retaining its prominent position in international shipping and further grow it,” added the CSC.

It would also serve as a compelling tool to draw additional value shipowners and shipping companies in Cyprus, with a positive effect on the economy and society in Cyprus.