Archive for October, 2016

Renewal of the Certificate of a Private Ship Security Company (PSSC)

Circular No. 31/2016

Subject:

  • Renewal of the Certificate of a Private Ship Security Company (PSSC)
  • Circular by virtue of section 81 of the Protection of Cyprus Ships against Acts of Piracy and Other Unlawful Acts Law of 2012, Law 77(I)/2012 (“the Law”)

The master of a ship and the ship’s operator each has the obligation to implement the necessary measures, in accordance with the provisions of SOLAS chapter XI-2, the ISPS Code and Regulation (EC) No 725/2004, for ensuring and maintaining the security of the ship and for preventing unlawful acts. The ship’s operator may entrust to a private ship security company, through a written private agreement, the implementation of some of the security measures.

According to the Law a “private ship security company” means a legal person which has been approved pursuant to the provisions of this Law and to which a PSSC certificate has been issued pursuant to the provisions of the Law to resemble the authority of the private ship security company to implement security measures on a ship.

The Department of Merchant Shipping has set the below procedure for the renewal of a PSSC Certificate:

A PSSC must submit the following documents to the Competent Authority, at least 15 days prior to the expiration date of its latest valid PSSC Certificate:

  • The latest version of the Application for the Renewal of the Certificate (Form “EN04F114”), duly completed and signed by the person responsible for the company.
  • The latest version of the PSSC Information Sheet (Form “EN04F116”), outlining the information required by the Sixth Schedule of the Law, dully completed and updated.

For the examination of an application for the renewal of a PSSC Certificate the prescribed fees should be remitted (refer to the Protection of Cyprus Ships Against Acts of Piracy (Determination of Fees) Notification in force issued by the Director of the Department under section 86 of the Law) and the relevant forms may be obtained from the official webpage of the Department of Merchant Shipping (DMS) (www.shipping.gov.cy).

The Competent Authority, in addition to the examination of the documents referred to in paragraph 2 above and prior to renewing a Certificate, may decide, as an integral part of the renewal procedure, to carry out an inspection/audit at the office(s) from where the PSSC is conducting its activities/ operations, for the purpose of determining that the provisions of the Law are implemented, pursuant to section 77(1) of the Law.

Maria Kozakou’s Article “Reflections on the ‘Culture’ of Arbitration in Cyprus” made front page on the Litigation & Dispute Resolution guide by Corporate LiveWire website

Maria Kozakou – Advocate, at Christodoulos G. Vassiliades & Co LLC investigates mechanisms of alternative dispute resolution (‘ADR’), and its increasing popularity in Cyprus arbitration scene.

The Article under the title “Reflections on the ‘Culture’ of Arbitration in Cyprus” made front page on the Corporate LiveWire Website Follow this Link

The Article consists of:

  1. History of Formal Peace and Conflict;
  2. The distinction between Domestic Arbitration and International Arbitration;
  3. The characteristics of the legal framework regulating International Arbitration;
  4. The application of ICAL legislation; and
  5. ADR role in Cyprus.

For the guide, please click here

CYPRUS SIGNS A TAX TREATY WITH JERSEY FOR THE AVOIDANCE OF DOUBLE TAXATION

The Republic of Cyprus has recently concluded a Double Tax Treaty with Jersey. The treaty was signed on 11th July 2016 and was published in the Official Cyprus Government Gazette on 5th August 2016. The Double Tax Treaty is expected to become effective as of 1st January 2017.

The treaty signed is based on the Organisation for Economic Co-operation and Development

(OECD) Model Tax Convention for the Avoidance of Double Taxation on Income and on Capital.

The new treaty, together with the treaty signed recently between Cyprus and Guernsey, will contribute to the further development of the trade and economic links between Cyprus and the Channel Islands, as well as with other countries.

Upgrading and expanding the network of Double Tax Conventions, is of high economic and political importance and aims to further strengthen and attract foreign investment in Cyprus as its standing as an international business centre is elevated.

The main provisions of the Double Tax Treaty

Permanent Establishment

The permanent establishment definition included in the treat y is in line with the meaning provided in the OECD model tax convention. In particular, any building site or construction or installation project constitutes a permanent establishment, only if it lasts more than 12 months.

Withholding tax rate on dividend payments

  • 0% withholding tax

Withholding tax rate on interest payments

  • 0% withholding tax

Withholding tax rate on royalties payments

  • 0% withholding tax

Capital Gains Tax

  • Gains from the disposal of immovable property are taxed in the country where the immovable property is situated.

• Gains from the disposal of shares are taxable in the countr y of which the seller is located, irrespective if the value is derived directly or indirectly from immovable property

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Maritime Labour Convention 2006 (MLC): Financial Security Requirements

In April 2014, the International Labour Organisation (ILO) agreed on several amendments to the MLC, which have been agreed on back in 2009 by the joint IMO/ILO financial security working group. As per Circular No 2016/16 issued by the Group Director of The North of England P&I Association limited, these amendments will be applicable as of 18 January 2017.

Accordingly, after the implementation date, all ships registered in a state where MLC is in force or calling at a port of jurisdiction where MLC is in force will have to display certificates issued by an insurer or other financial security provider confirming that insurance or other financial security is in place for liabilities in respect of

  • The cost and expense of crew repatriation along with an up to four months contractually entitled arrears of wages and entitlements following abandonment in accordance with MLC Regulation 2.5.2, as amended; and
  • Contractual claims arising from seafarer personal injury, disability or death in accordance with Regulation 4.2 as amended.

For easy implementation of the amendments, all 13 International Group (IG) Clubs agreed on providing the necessary MLC certification by way of an extension clause to the P&I rules and indemnify the seafarers directly should the requisite MLC event occur. However, a right of indemnity of Members will be in place meaning that the Members will be obliged to reimburse the Club where the new MLC liabilities will not fall within the Club’s existing standard cover.

Further, it is agreed by the IG Clubs that they will participate in a separate group reinsurance agreement, in the event a Club becomes liable for its Members’ financial default resulting in a seafarer abandonment.

The certificates will be provided by the Club and upon their issuance, they will have to be posted in a conspicuous place on board in order to be available to seafarers until the 18 January 2018.

New Paphos Office Announcement

We are delighted to announce the further expansion of Christodoulos G. Vassiliades & Co. LLC, with the proud addition of the Paphos office. Our Paphos presence reflects our continued commitment to growth and expansion of our business portfolio and range of services offered to our clients.

Our Paphos office is conveniently located at S.P. Business Centre, 17 Neofytou Nikolaidi & Kilkis Avenue, which is on the same street and within one minute walking distance from the Paphos District Court, Land Registry and Tax Authority.

With over 30 years of experience, our Firm is currently one of the most-reputable and well-established law firms in the Republic of Cyprus. We are very proud that we now have presence in all three major cities in Cyprus: Nicosia (Head Office), Limassol and Paphos.

We are known as a one-stop service firm, because we are able to provide prompt and quality services extending to multiple areas of the law. Our dynamic and experienced team is well-equipped to assist you on a wide range of legal services, including but not limited to Property Law, Immigration Law, Company Law, Contract Law etc.

With our international reach, having affiliated offices in Greece, Malta, London, Hungary, Russia, Seychelles and Belize, we are in a position to assist you with your legal needs in these jurisdictions too. Our mission is to be a one-stop firm serving yours and your family’s needs.

Person responsible for the office:

Sanela Trzin

(Barrister at Law & Registered European Lawyer) | sanelat@vasslaw.net

Lawyers of the office:

Athina Evagorou (Advocate) | athinae@vasslaw.net

Marija Butkute (Legal Consultant) |marijab@vasslaw.net

Contact Details:

Address: S.P. Business Centre, 17 Neofytou Nikolaidi & Kilkis Avenue, Office 206 & 207, 8011 Paphos, Cyprus

Tel: +357 26 500500 | Fax: +357 26 500501

Email Address: sanelat@vasslaw.net

Mailing Address: P.O.Box 62625, CY-8066 Paphos, Cyprus

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