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Profits from Shipping Activities

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

  • Cyprus shipping tax advantagesThe income of a qualifying ship-owner or a qualifying chartered of a qualifying Cyprus, community and/or foreign (conditions apply) ship from the operation of such ship in any qualifying shipping activity between Cyprus and ports abroad or between ports abroad.
  • The income of a qualifying ship operator person from the provision of ship management services of the crew and/or technical administration services.
  • Dividends paid to the shareholders of a company if these are paid out of profits earned from the operation of a Cyprus qualifying 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 qualifying 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.