“The prolongation of our tonnage tax system shows that the European Commission trusts Cyprus and appreciates both our work and professionalism in the project’s implementation,” deputy minister of shipping Natasa Pilides told Phileleftheros.

“We are very pleased to ensure stability for another ten years and contribute towards the further development of Cypriot shipping, ” she added.

Shipping authorities in Cyprus were nervous over this issue which was negotiated between the state and private sector for almost two years before taken to Brussels. The agreement expires every 10 years, in accordance with regulations on state subsidies.

The Cyprus tonnage tax measure is a tax system whereby beneficiary companies can choose to be taxed on the basis of their net tonnage (tonnage tax) rather than on their actual profits from maritime transport activities. The tonnage tax is considered one of the key assets of the Cypriot shipping industry in efforts to attract more ships and companies to the Mediterranean island.

In addition to Cyprus, the Commission has also approved maritime transport support schemes in four other member states – Denmark, Estonia, Poland and Sweden.

Source: In-Cyprus