Under EU state aid rules, the EU Commission approved the prolongation of Cyprus’ tonnage tax scheme, which applies to ship ownership, ship management and ship chartering activities for the next ten years. The system is expected to contribute to the competitiveness of the EU maritime transport sector while supporting Europe’s high environmental and safety standards.
Cyprus was the first ever open registry to have a Tonnage Tax System (TTS) approved by the EU and this system has now been prolonged following extensive negotiation between the Cyprus Shipping Deputy Ministry and the European Commission.
Apart from Cyprus, the EU Commission has approved another four schemes to support maritime transport in Denmark, Estonia, Poland and Sweden.
In early September, President of Cyprus Nicos Anastasiades revealed plans for Cyprus to update its tonnage tax system and its pricing policy for the registration of ships, a project that is in line with its targeted measures to enhance the competitiveness of the Cyprus shipping industry.
The system’s prolongation provides stability and certainty for current and future shipping companies flagged with the Cyprus Shipping Deputy Ministry and/or operating in Cyprus.
The prolongation of the system is expected to encourage ship registration in Europe, as well as the presence and growth of shipping companies and maritime operations in the EU.
To be recognised by the European Commission for our fair and transparent Tonnage Tax System, which has already been applicable for ten years and is now extended for another ten years, demonstrates our commitment to the sustainable growth of European Shipping and enables us to continue with our strategy for the sustainable growth of the sector in Cyprus and in Europe,
…Natasa Pilides, Cyprus Shipping Deputy Minister, said.
The Cyprus Flag averages seven years of age, encompassing over 1,000 oceangoing vessels with a total gross tonnage exceeding 24 million.