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HOME  /  NEWS  /  PROLONGATION OF “THE MERCHANT SHIPPING (FEES AND TAXING PROVISIONS) LAW OF 2010 (LAW 44 (I)/2010)”

BRIEFINGS

Prolongation of “The Merchant Shipping (Fees and Taxing Provisions) Law of 2010 (Law 44 (I)/2010)”

To all Registered Owners, Registered bareboat charterers, Managers and Representatives of ships flying the Cyprus flag.

The European Commission concluded in its Decision dated 16 December 2019 that the Cyprus tonnage tax and seafarer scheme is in line with EU State aid rules, as it contributes to the competitiveness of the EU maritime sector and encourages ship registration in Europe while at the same time preserving Europe’s high social, environmental and safety standards and ensuring a level playing field. Furthermore, the European Commission also concluded that the assessed scheme of Cyprus is compatible with the internal market and in line with the Guidelines on State aid to maritime transport.

The amendment Bill provides inter alia for the extension of the validity period of the Merchant Shipping (Fees and Taxing Provisions) Law of 2010 (Law 44(I)/2010) until 31 December 2029, as well as for certain amendments which were deemed necessary in order to conform with the aforementioned approval Decision of the European Commission.  

A relevant amendment Bill amending principal Law 44(I)/2010 has been prepared and it is anticipated that the Bill will be enacted into Law by the Cyprus Parliament within the coming weeks.