The tonnage tax system is available to any owner who owns a qualifying ship in a qualifying shipping activity. The tonnage tax is calculated on the basis of the net tonnage of the qualifying ships.
Qualifying Ship
A qualifying ship is any seagoing vessel certified under applicable international or national rules and regulations and registered in the ship register of any member of the International Maritime Organization and the International Labour Organization, which is recognised by Cyprus.
Qualifying Shipping Activity
Any commercial activity that constitutes maritime transport is considered a qualifying activity. The definition of maritime transport includes the traditional carriage of goods and passengers by sea, outside the territorial waters of the Republic of Cyprus, between a Cyprus port and a foreign port, or between foreign ports.
Shipowners
Ship owners of Cyprus flag ships automatically fall within the scope of the tonnage tax system. The tonnage tax system covers profits from shipping operations, dividends paid directly or indirectly out of such profits, profits on the sale of the ship and interest earned on funds used as working capital or for the financing, operation and/or maintenance of the ship.
| Net Tonnage | ||||
| 0 – 1.000 | 1.001 – 10.000 | 10.001 – 25.000 | 25.001 – 40.000 | > 40.000 |
| € 36,50
per 100 NT |
€ 31,03
per 100 NT |
€ 20,08
per 100 NT |
€ 12,78
per 100 NT |
€ 7,30
per 100 NT |
Any residual tonnage of less than 100 units of net tonnage shall be charged proportionally.
Sample calculation of the annual tonnage tax for a 19.538 net tonnage vessel:
1.000 NT : 1.000/100 = 10 x € 36,50 = € 365,00
9.000 NT : 9.000/100 = 90 x € 31,03 = € 2.792,70
9.500 NT : 9.500/100 = 95 x € 20,08 = € 1.907,60
38 NT : 38/100 = 0,38 x € 20,08 = € 7,63
_________
Annual tonnage tax due = € 5.072,93