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Department of Merchant Shipping Circular No. 32/2015 with regards to the Cyprus Tonnage Tax System

As per Circular No. 32/2015 published by the Department of Merchant Shipping on the 25th of November 2015 with regards to the Cyprus Tonnage Tax System (Law 44(I)/2010), the Director of the Department having 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 2014 has decided that certain flags will be included in the Grey List or the Black List of the Paris MOU for the fiscal year 2015.

Specifically, ships flagged under the flags of: Albania, Algeria, Bulgaria, Curacao, Egypt, Georgia, Jamaica, Lebanon, Libya, Lithuania, Malaysia, Mongolia, Morocco, Poland, Portugal, Slovakia, Spain, St. Kitts and Nevis, Syrian Arab Republic, Thailand, Tunisia, Tuvalu, Ukraine, Vanuatu or Vietnam, 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: Azerbaijan, Belize, Bolivia, Cambodia, Comoros, Dominica, Honduras, Republic of Moldova, Montenegro, Sierra Leone, St. Vincent and the Grenadines, United Republic of Tanzania or Togo, 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 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.