EC decision on taxation “positive development” for Cyprus shipping

The Cyprus Shipping Chamber hailed last week’s decision by the European Commission to extend the right to ship-management companies which provide “crew management” services to be allowed to be taxed under a tonnage tax scheme, as it is already applied in the cases of shipowning and ship-management companies.
The CSC said this development is considered very important for the island’s shipping industry, which consists of a large number of shipping companies that will be positively affected, considering that Cyprus constitutes the biggest ship-management centre in the European Union and internationally.
In addition, “this positive decision will assist even more the imminent revision of the entire taxation scheme for shipping companies in Cyprus by the European Commission in the forthcoming months and as such it will successfully complete the continuous effort that was jointly undertaken by the Ministry of Communications and Works, the Department of Merchant Shipping, other government departments and the Shipping Chamber, to maintain and further enhance the shipping industry,” a CSC announcement added.
“This very positive development for Cyprus shipping, especially when as a result of the world financial crisis international shipping has been dramatically affected, creates optimistic expectations that the Cyprus shipping industry will continue its ascending course, as well as its very important contribution to the economy of Cyprus,” the CSC added.