ADVANTAGES OF THE CYPRUS FLAG

The most important advantages of ships under the Cyprus Flag are:

• No income tax on the profits derived by a Cyprus Shipowning company nor any tax on any dividend of any Cyprus shipowning company (including chartering of any nature of any vessel) (S.4 of the Merchant Shipping Laws No. 38 (I) of 1992).

• No tax on dividends of a Cyprus Shipping company

• No estate duty on the inheritance of shares

• No capital gains tax on the sale or transfer of a ship or the transfer of the shares of the shipowning company

• No tax on the salaries of crew members

• The possibility of employing any nationality of crew members

• Recognition of the Competence Certificate issued by Cyprus

• Application of English Law

• Existence of a Collective Agreement between Trade Unions and Shipowners

• Cyprus ships can call at any port in the world, and in most, enjoy favoured national treatment

• Possibility of provisional registration taking place abroad

• A quick and easy way of obtaining certificates for the ship

• Minimum of red tape

• Low tonnage tax and other duties paid for registration fees, annual tonnage tax, mortgages etc.

• Full protection and recognition of mortgages registered on a Cyprus ship

• Possibility of parallel registration of Cyprus Ships in other countries

• Possibility of parallel registration of foreign ships in the Cyprus Registry

• Existence of bilateral agreement between Cyprus and other Countries

• Double Tax Treaties with 42 countries

• Existence of high quality professional services (lawyers, accountants etc.)

• Perfect telecommunication services

Shipmanagement companies have the option, subject to the satisfaction of some requirements, to be taxed either according to the corporate rate of 10% or to a special tax, which is levied on the basis of the tonnage of ships, for which shipmanagmet services have been rendered.