Archive for November, 2017

Cyprus Tonnage Tax System: Flags appearing on the Grey List and Black List of the Paris MOU for the Fiscal Year 2017

As per Circular No. 20/2017 published by the Department of Merchant Shipping on the 31st of October 2017 with regard to the Cyprus Tonnage Tax System (Law 44(I)/2010), the Director of the Department relied on sections 17(2), 27(2) and 40(2) of the Law and the relevant tables contained in the Annual report of the Paris MOU for the year 2015 and has decided that certain flags will be included in the Grey List or the Black List of the Paris MOU for the fiscal year 2017.

Specifically, ships flagged under flags of: Albania, Algeria, Azerbaijan, Bulgaria, Curacao, Egypt, Georgia, India, Jamaica, the Republic of Korea, Kuwait, Lebanon, Libya, Lithuania, Malaysia, Mongolia, Morocco, Poland, Slovakia, Switzerland, St. Vincent and the Grenadines, Syrian Arab Republic, Thailand, Tunisia, Tuvalu, Ukraine and Viet Nam are included in the GREY list of the Paris MOU. Moreover, the Qualifying non-Community ships that fall within this List shall have their annual tonnage tax increased by thirty per cent (30%),

Similarly, ships flagged under flags of: Belize, Bolivia, Cambodia, Comoros, the Republic of Congo, Dominica, Honduras, the Republic of Moldova, Montenegro, Sierra Leone, St. Kitts and Nevis, United Republic of Tanzania, Togo and Vanuatu are included in the BLACK list of the Paris MOU, accordingly. Qualifying non-Community ships that fall within this List shall have their annual tonnage tax increased by sixty per cent (60%).

In addition, Community and non-Community ships under management flying a flag of a State mentioned in the BLACK list must be deemed to comply with international and Community standards only if the technical and crew management of every such ship is entirely performed from the territory of any EU/EEA Member State. In case of failure of compliance with these requirements, s 54 of the Law will apply, thus the Director may impose a fee to ensure compliance