The following are exempt from taxation in accordance with the provisions of the Merchant Shipping (Fees and Taxing Provisions) Law:

• The income of a ship-owner of a Cyprus ship from the operation of such ship in any shipping activity between Cyprus and ports abroad or between ports abroad.
• The income of a person from the provision of ship management services.
• Dividends paid to the shareholders of a company if these are paid out of profits earned from the operation of a Cyprus ship in shipping activities or from the provision of ship management services.
• Salaries and other benefits paid to the master, the officers and the crew of a Cyprus ship.
  For the purpose of the above mentioned act the term “ship owner” includes a bareboat chartered while the term “operation of ship” includes chartering of any form.
• Persons providing ship management services are liable to tax at rates equal to 25% of those applied for tonnage tax. Such persons may however, elect instead to pay tax at the rate of 4,25% on their taxable profits.