Cyprus amends tonnage tax system for flags on Grey List and Black List

The Shipping Deputy Ministry of Cyprus has issued a circular amending the tonnage tax system for flags that appear on the Grey List and the Black List of the Paris MoU for the fiscal year 2022.

This document has been published on November 18th, 2022.

In accordance with the provisions of sections 17(2), 27(2) and 40(2) of Law 44(1)/2010 as amended and on the basis of the relevant tables contained in the Annual Report of the Paris MoU for the year 2021, the Acting Permanent Secretary of the Shipping Deputy Ministry has decided that the flags appearing in Annex I are included in the Grey List of the Paris MoU and flags appearing in Annex II are included in the Black List of the Paris MoU.

It is recalled that, according to the above provisions of, Qualifying non-Community ships shall have their annual tonnage tax increased:

(a) by thirty per cent (30%) if the flag they are entitled to fly appears in the Grey List of the Paris MoU;

(b) by sixty per cent (60%) if the flag they are entitled to fly appears in the Black List of the Paris MoU.

According to section 34(4) of the Law, ships under management (Community and non-Community ships), flying a flag which appears in the Black List of the Paris MoU, shall be deemed to fulfil the requirements of section 34(1 ).
These ships comply with International and Community standards, only if the technical and crew management of every such ship is entirely performed from the territory of any EU/EEA Member State.
In case of non-compliance with the above, the provisions of section 54 of the Law shall apply.


RELEVANT DOCUMENTS (AVAILABLE ONLY TO SUBSCRIBERS):

Cyprus Tonnage Tax System (Law 44(I)/2010 as amended): Flags which appear on the Grey List and Black List of the Paris MOU for the Fiscal Year 2022

New Cyprus Tonnage Tax Legislation : The Merchant Shipping (Fees and Taxing Provisions) Law of 2010 ( Law 44(I)/2010)