Archive for January, 2016

Cyprus Signs a Tax Treaty with Ethiopia for the Avoidance of Double Taxation

The Republic of Cyprus has recently concluded a Double Tax Treaty with the Federal Democratic Republic of Ethiopia.

The treaty was signed on the 30th of December 2015 and is based on the Organisation for Economic Co-operation and Development (OECD) Model Tax Convention framework.

The signing of the Treaty will contribute to the expansion of Cyprus’ trade and economic relations between the two countries as well as with other African developing countries which became a magnet for new investments.

For a full analysis, please: Read More

Bimco’s “Superman” Contract for Newbuilding Supervision Services

A new standard contract for ship managers has been added to BIMCO’s existing collection of ship management agreements.  The so-called “SUPERMAN” contract is a “cost plus fee” contract, as opposed to a lump sum, modelled on SHIPMAN 2009, for newbuilding supervision services.  Specifically, SUPERMAN provides third party ship managers with a standard agreement to govern their duties and obligations when acting in a supervisory capacity and as agents on behalf of a ship owner during ship construction, conversion or repair projects.

Due to its similarity with SHIPMAN 2009, SUPERMAN adopts key clauses of the latter with respect to manager’s authority, liabilities and termination, while it offers the users with a variety of optional services which include site supervision, guarantee claims handling, plan approval and technical specification review.  However, under SUPERMAN a “Company” is defined as the party who is contracting with the Supervisors, while the “Flag State” refers to the State under whose laws the ship will be constructed and not the Flag State of the ship after delivery.  Moreover, supervisors are required by the contract to have professional indemnity insurances, and specific time-bars for claims are set out to provide certainty to the contracting parties.  Although, SUPERMAN is designed as a one-ship supervision, Clause 17(c) allows the Company to have several ships under construction at the same time contracted for supervision with the same supervisors.  An important addition of SUPERMAN is that it provides a 12 months’ time bar during which the Company is obliged to notify the Supervisors of any loss, damage, delay or expense.

As per Captain Ajay Hazari of Anglo-Eastern Ship Management, head of the drafting team: “SUPERMAN satisfies the demand for a balanced, industry-recognised, standard contract form for newbuilding supervision services and it completes BIMCO’s suite of ‘cradle to grave’ ship management services and related commercial contracts.”

Updated List of Accounting Authorities Recognized by the Republic of Cyprus.

The Department of Merchant shipping issued a revised list of accounting authorities recognised by the Republic of Cyprus as of 2016, as approved by the Council of Ministers of the Republic of Cyprus, on the 14th December 2015.

The accounting authorities recognised by the Republic of Cyprus are:

  1. ASTRIUM SERVICES BUSINESS COMMUNICATIONS S.A.
  2. NAVIBULGAR SERVICES LTD
  3. MONARCH TELECOM LTD
  4. AZORES RADIO COMMUNICATIONS SERVICES LIMITED
  5. TELEACCOUNT OVERSEAS LTD
  6. SATLINK (MARITIME SERVICES) LIMITED
  7. CYPRUS TELECOMMUNICATIONS AUTHORITY
  8. UNICOM MANAGEMENT SERVICES (CYPRUS) LIMITED
  9. ONE NET LIMITED
  10. ASTRIUM SERVICES BUSINESS COMMUNICATIONS GMBH
  11. DH-INTERCOM GmbH& Co. KG
  12. AS RSTA
  13. STICHTING ASTRIUM SERVICES
  14. AND GROUP PLC
  15. SELEX ES LTD MARINE
  16. NSSLGLOBAL LTD
  17. OTESAT – MARITEL
  18. HECOSAR
  19. HELLENIC RADIO SERVICES S.A.
  20. NAVARINO TELECOM SA
  21. COMPAGNIA GENERALE TELEMAR S.P.A
  22. KYORITSU RADIO SERVICE CO., LTD
  23. MCS (FE) PTE LTD
  24. FEDERAL STATE UNITARY ENTERPRISE “MORSVIAZPUTNIK”
  25. ASTRIUM SERVICES BUSINESS COMMUNICATIONS INC
  26. STRATOS GLOBAL

Department of Merchant Shipping Circular No. 01/2016 on the number of private ship security guards and firearms registered by a Private Ship Security Company.

Circular No. 1/2016 issued on the 14th of January 2016 by the Department of Merchant Shipping, advises on the instructions of the Minister of Communications and Works for the regulation of the number of private ship security guards and firearms a Private Ship Security Company (“PSSC”) may register on its Cyprus certificate. These instructions, to be implemented as from the 1st of January 2016, were concluded following the implementation of the Protection of Cyprus Ships against Acts of Piracy and Other Unlawful Acts Law of 2012 (“the Law”), and a review of the services provided by the PSSCs to Cyprus Ships as well as related operational issues.

Pursuant to section 22(1) of the Law, the number of firearms must be proportional to the number of guards at a ratio of two (2) to one (1), since for each approved private ship security guard, the PSCC is able to register on its Cyprus certificate up to two (2) firearms and vice-versa.  Hence, any PSSC which has more firearms registered on its certificate than is permitted must apply to the DMS for the addition of the required additional number of guards or for the deletion of the required number of firearms.  The relevant fees for the addition of guards have to be paid.  With regards to the maximum number of firearms, a PSCC is entitled to register on its Cyprus certificate up to four hundred (400) firearms.  Thus, any PSSC with more than four hundred firearms registered must immediately apply to the DMS for the deletion of the additional firearms.  Such deletion will be free of charge.  Moreover, in case that a PSSC does not provide any service to a Cyprus ship for a continuous period of one calendar year as from 1 January 2016, the Certificate must be automatically withdrawn.

Regarding the fees payable for services rendered by the Minister pursuant to the Law, they are currently being reviewed and are to be subject to amendments; a relevant notification will be issued accordingly in this respect.

Failure by any natural or legal person to comply with any provision of the Law and any instruction of the Minister regarding the implementation of the Law may result in the withdrawal of the Certificate in accordance with section 36 of the Law, and/or, in criminal proceedings resulting in a sentence of imprisonment up to two years and/or a fine up to €20,000 in accordance with section 89 of the Law.

Winners of 2016 Corporate INTL Magazine Global Award as the International Tax Planning Law Firm of the Year in Cyprus.

We are proud to start the new year as the chosen winners of the 2016 Corporate INTL Magazine Global Award as the:

 

International Tax Planning Law Firm of the Year in Cyprus.

2016_Global_Awards_Winner (3)_ Corporate INTL_ International Tax Planning Law Firm of the Year in Cyprus_ 12012016

2016 proved to be an extremely successful year for us and we have shown once again excellence not only in our expertise but in service.

 

We pride ourselves in providing excellent service to all our clients and are pleased when our efforts are recognised and rewarded.