{"id":975,"date":"2020-01-02T12:20:52","date_gmt":"2020-01-02T10:20:52","guid":{"rendered":"http:\/\/www.globalconsultantgroup.net\/?page_id=975"},"modified":"2020-01-02T12:22:16","modified_gmt":"2020-01-02T10:22:16","slug":"shipping-companies-tax","status":"publish","type":"page","link":"https:\/\/globalconsultantgroup.net\/index.php\/shipping-companies-tax\/","title":{"rendered":"Shipping companies Tax"},"content":{"rendered":"<p>[vc_row][vc_column][vc_column_text css_animation=&#8221;fadeIn&#8221;]The Merchant Shipping Legislation fully approved by the EU provides for exemption from all direct taxes and taxation under tonnage tax regime of qualifying ship-owners, charterers and ship managers, from the operation of qualifying community ships (ships flying a flag of an EU member state or of a country in the European Community Area) and foreign (non-community) ships (under conditions), in qualifying activities.<\/p>\n<p>The legislation allows non community vessels to enter the tonnage tax regime provided the fleet is composed by at least 60% community vessels. If this requirement is not met, then non community vessels can still qualify if certain criteria are met.<\/p>\n<p>The legislation includes an \u2018all or nothing\u2019 rule, meaning that if a ship-owner\/charterer\/ship manager of a group elects to be taxed under the Tonnage Tax regime, all\u00a0\u00a0 ship-owners\/charterers\/ship managers of the group should elect the same.<\/p>\n<p>Exemption is also given in relation to the salaries of officers and crew aboard a Cyprus ship.<\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>Ship-owners<\/strong><\/li>\n<\/ul>\n<p>The following are exempt from taxation in accordance with the provisions of the Merchant Shipping Legislation and are subject to tonnage tax:<\/p>\n<ul>\n<li>The profits from the operation of such ship in any shipping activity between Cyprus and ports abroad or between ports abroad.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li>Interest income relating to the working capital of the company<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li>Profit from the sale of qualifying ships<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li>Profit from the sale of a ship owning company<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li>\u00a0Dividends paid to the shareholders of a ship owning company<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>Charterers<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li>Profits derived from the operation of Charterers in ships<\/li>\n<li>Interest income relating to the working capital of the company<\/li>\n<li>Dividends received from the above profits at all distribution levels<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>Ship managers<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>The exemption covers:<\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li>Profits from technical and\/or crew management<\/li>\n<li>Dividends paid out of these profits at all levels of distribution<\/li>\n<li>Interest income relating to the working capital of the company.<\/li>\n<\/ul>\n<p>In order to qualify ship managers must satisfy the following additional requirements:<\/p>\n<ul>\n<li>Maintain a fully-fledged office in Cyprus with personnel sufficient in number and qualifications<\/li>\n<li>At least 51% of all onshore personnel must be community citizens<\/li>\n<li>At least 2\/3 of the total tonnage under management must be managed within the community (any excess of 1\/3 taxed under cooperation tax)<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>The application of the tonnage tax system is compulsory for owners of Cyprus flag ships and optional for owners of non-Cyprus flag ships, charterers and ship managers. Those who choose to enter the Tonnage Tax regime must remain in the system for at least 10 years unless they had a valid reason to exit such as disposal of their vessels and cessation of their activities.[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_column_text css_animation=&#8221;fadeIn&#8221;]The Merchant Shipping Legislation fully approved by the EU provides for exemption from all direct taxes and taxation under tonnage tax regime of qualifying ship-owners, charterers and ship managers, from the operation of qualifying community ships (ships flying a flag of an EU member state or of a country in the European Community Area) [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0},"_links":{"self":[{"href":"https:\/\/globalconsultantgroup.net\/index.php\/wp-json\/wp\/v2\/pages\/975"}],"collection":[{"href":"https:\/\/globalconsultantgroup.net\/index.php\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/globalconsultantgroup.net\/index.php\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/globalconsultantgroup.net\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/globalconsultantgroup.net\/index.php\/wp-json\/wp\/v2\/comments?post=975"}],"version-history":[{"count":0,"href":"https:\/\/globalconsultantgroup.net\/index.php\/wp-json\/wp\/v2\/pages\/975\/revisions"}],"wp:attachment":[{"href":"https:\/\/globalconsultantgroup.net\/index.php\/wp-json\/wp\/v2\/media?parent=975"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}