PROFITS FROM SHIPPING ACTIVITIES

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.

PROFITS FROM SHIPPING ACTIVITIES

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.