Cyprus’ prominent position in the shipping sector is further reinforced by the considerable tax incentives it offers but also by the numerous double tax treaties that were concluded with many countries.
The Tonnage Tax System (TTS), which was officially approved by the European Commission in 2010 is covering the three basic shipping activities, namely, ship owning, ship management and chartering. This innovative legislation provided inter alia, certainty in the annual expenses; in contrast to the usual corporate tax, the tonnage tax is simply a fixed percentage on the total net carrying capacity of a ship.
Beneficiaries of the TTS are exempted from the payment of income tax under the provisions of the Income Tax Law in force. Owners of Cyprus and foreign ships, ship managers and charterers can be the beneficiaries of this fiscal legislation, which has been in effect since 2010 and is governed by the Merchant Shipping (Fees and Taxing Provisions) Laws of 2010 -2020 (Law 44(I)/2010 as amended by Law 39(I)/2020).
We can advise shipowners, charterers and ship managers regarding the qualification conditions under the Tonnage Tax System and we can provide tax advisory services related to the shipping sector.
Legal500 EMEA 2023 Edition
"The practice consists of highly qualified team of lawyers, consultants as well as chartered accountants, all specializing on different areas of tax and it is evident that in the past few years they have invested deeply on expanding their tax practice. AGP Law lawyers have an exceptional way of handling tax projects and it’s a pleasure for us to work with such a team.".
"They have gained a strong reputation in tax in Cyprus and I believe there is no other law firm in Cyprus with a truly dedicated tax practice as AGP Law has. The differentiative factor from competitors in Cyprus is that AGP Law consists of a true tax team, specialists on tax and focusing on expanding this practice further.".
"We work with the entire tax team on nearly a daily basis. They all work as a team and bring admirable results. Angelos Paphitis is an excellent specialist, Michael Alexandrou, a very experienced and highly skilled tax advisor, Nicolas Patsalis, very attentive and professional.".