The Tonnage Tax system, which is currently in force in Cyprus, enables a fleet of vessels having its majority under the Cyprus flag, not only to enjoy the benefits of a prestigious and internationally acclaimed ship registry, but at the same time to take advantage of the extremely favourable taxation benefits.
The “Tonnage Taxation System” is based on a pro-rata charge according to a vessel’s (NT) “Net Tonnage”, regardless of what the income/pro t from this vessel might be. This in essence means that the SPV Companies and ultimately the Fund itself will be taxed locally as per the Tonnage Tax system, with the amount of earnings deducted for tax being almost negligible.
In addition, this is supplemented by the very favourable taxation framework for Alternative Investment Funds, offering an attractive taxation regime both for the fund itself as well as the investors.