Fees and Taxes

Fees and Taxes

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Registration Fees
Although Cyprus has much to offer in terms of infrastructure and maritime administration ultimately the bottom line is costs. In terms of registration fees and taxes, Cyprus is considered to be among the most competitive shipping centres in the world. The fees listed below are lower than those of Cyprus’ main competitors.

The fees are expressed in Cyprus Pounds (CY£1 = 100 cent) and EURO (€1 = CY£0,585274).

For vessels other than passenger ships

GROSS TONNAGE	CY£	EURO
For each unit up to 5.000	10 cent	17,09 cent
For each additional unit between 5.001-10.000	8 cent	13,67 cent
For each additional unit over 10.000	4 cent	6,83 cent
The minimum fee is CY£125 (€213,58) and the maximum fee is CY£3.000 (€5.125,80)

For passenger ships

GROSS TONNAGE	CY£	EURO
For each unit	15 cent	25,63 cent
The minimum fee is CY£250 (€427,15)

Tonnage Tax
For vessels other than passenger ships the tonnage tax is calculated as follows:

(BASIC CHARGE + GROSS TONNAGE INCREMENT) x AGE MULTIPLIER

The basic charge is CY£100 (€170,86) and the gross tonnage increment is calculated as follows:

GROSS TONNAGE	CY£	EURO
For each unit up to 1.600	26 cent	44,42 cent
For each additional unit between 1.601-10.000	16 cent	27,34 cent
For each additional unit between 10.001-50.000	6 cent	10,25 cent
For each additional unit over 50.000	4 cent	6,83 cent

The age multiplier is shown below:

AGE*	SHIP RATE MULTIPLIER
Up to 10 years	0,75
11-20 years	1,00
Over 20 years	1,30
* This is calculated by taking the year in which the keel was laid and then deducting it from the year of assessment of the tonnage tax.

FOR PASSENGER SHIPS
For passenger ships the tonnage tax payable is double that payable for other vessels.

TERMS OF PAYMENT
The tonnage tax is payable on 31st March each year. Late payment results in the imposition of a 10% surcharge on the leviable amount of tonnage tax for every year or part thereof following the date on which it becomes due.

In case of a deletion of the ship from the Register of Cyprus Ships before the expiration of the year for which tonnage tax has been paid for, the amount paid in excess shall be reimbursed to the shipowner or shall be credited against any other amounts due by the ship upon his application.

Reduction of Tonnage Tax
Section 8 of the Merchant Shipping (Fees and Taxing Provisions) Laws, 1992-2007 provides for the reduction and refund of the tonnage tax in the cases listed below.

TECHNICAL MANAGEMENT AND CREWING BY CYPRIOT BASED COMPANIES
If the vessel’s technical management and crewing is carried out entirely by a Cyprus shipmanagement company or a Community shipmanagement company, which has an office in the Republic staffed with a sufficient in number and qualifications personnel (see Chapter 6: Shipmanagement Services), a 30 percent reduction of the tonnage tax is allowed provided the relevant documentary evidence is submitted to the Department of Merchant Shipping in advance of the period for which the reduction is claimed.

LAID-UP SHIPS
If the ship is laid up for a period of more than 3 consecutive months the tonnage tax payable is reduced by 75 percent for the period during which the vessel is laid-up, provided that the Department of Merchant Shipping is duly notified not later than 3 months from the commencement of the lay up period.

Fees for the Registration, Transfer, Transmission or Discharge of Mortgages
A. For the registration or transfer of a mortgage or transfer of interest in a mortgage with the Registrar of Ships, the fees payable are calculated as follows:

GROSS TONNAGE	CY£	EURO
For each unit up to 10.000	2 cent	3,42 cent
For each additional unit over 10.000	1 cent	1,71 cent
The minimum fee is CY£30 (€51,26)

	CY£	EURO
B. Fees for the Transmission of a mortgage	50	85,43

C. No fee is payable for the discharge of mortgages.

Fees for the Transfer of Ships
For the transfer of a ship to the ownership of another Cypriot company, the fees payable are calculated as follows:

GROSS TONNAGE	CY£	EURO
For each unit up to 10.000	2 cent	3,42 cent
For each additional unit over 10.000	1 cent	1,71 cent
The minimum fee is CY£30 (€51,26)

Deletion of a Ship from the Register of Cyprus Ships
No fee is payable for the deletion of ships. However, all other statutory fees and taxes due or in arrears at the time of the vessel’s deletion should be paid.

Other Fees

	CY£	EURO
Examination of an application for the registration of a vessel in the Register of Cyprus Ships	20	34,17
Examination of an application for change of the vessel’s name	20	34,17
Approval of the change of the vessel’s name	80	136,69
Issue of a provisional, permanent or parallel certificate of registration	10	17,09
Granting of ship’s carving and marking note	10	17,09
Issue of transcript of registry	15	25,63
Radio licence installation	10	17,09
Radio licence renewal	10	17,09
Issue of Continuous Synopsis Record	20	34,17

For various other services or for the issue of certain certificates other minor fees are also payable.

Fees and Taxes Payable on Provisional Registration
The following fees and taxes are payable at the time of the provisional registration of a vessel:

registration fees;
tonnage tax for 6 months;
fees for obtaining a licence to install and operate a wireless telegraphy and/or telephony station;
fee for the issue of the provisional certificate of Cyprus Registry.

These should be paid not later than the date on which the provisional registration of the vessel will be effected.

Fees and Taxes Payable for the Extension of the Period of Provisional Registration
For extending the period of the provisional registration of a vessel under the Cyprus flag for a maximum period of 3 months, the following fees and taxes are payable:

one half of the registration fees;
tonnage tax for 3 months.

These should be paid prior to the expiry date of the period of provisional registration.

Fees and Taxes Payable on Permanent Registration
If the relevant registration fees have been paid at the time of the provisional registration of the vessel and the period of provisional registration has not expired, then no other fees and taxes are levied for the permanent registration of a vessel apart from:

fee for the issue of the certificate of Cyprus Registry;
payment of any other statutory fees and taxes due or in arrears at the time of the permanent registration of the vessel.

No other fee is payable if the permanent registration takes place before the expiry of the provisional registration period. Otherwise the fees payable on provisional registration are payable anew.

Fees and Taxes Payable Annually
The following fees and taxes are payable each year:

tonnage tax;
fees for the renewal of the licence to install and operate a wireless telegraphy and/or telephony station.

Fees and Taxes Payable on Parallel (Bareboat) Registration
The initial registration fees for the parallel registration of a foreign vessel under the Cyprus flag (parallel-in registration) are 20 percent higher than those applicable to the provisional or permanent registration of the vessel. If the foreign vessel under the Cyprus flag is deleted and thereafter re-registered and the chartering is effected to the benefit of the same charterer prior to the deletion, the re-registration fees are reduced by 50 percent. There is no increase in the tonnage tax or other dues payable and the vessel is subject to the same financial obligations as other Cyprus ships.

A Cyprus ship registered in parallel in a foreign register (parallel-out registration) has the same financial obligations as all other Cyprus ships, with the exception of the fees for the issue or renewal of the radio licence. If the vessel is deleted from the Cyprus Registry prior to the termination of her status of parallel-out registration, that part of the tonnage tax which is proportional to the period from her deletion until the termination of her status of parallel registration is reimbursed upon application.

The financial obligations of vessels (Cypriot and foreign) registered in parallel are payable in advance for the entire period of the parallel (bareboat) registration.