Tonnage Tax: Countries Whose Ships Are Subject To Surcharge - December 2018

In order to promote its objective of improving the quality of Cyprus shipping, the Merchant Shipping (Fees and Taxing Provisions) Law of 2010 imposes a surcharge on the tonnage tax payable on qualifying vessels registered in countries which appear on the 'grey list' or 'black list' of the Paris Memorandum of Understanding (MOU). Article 17(2) provides for a surcharge payable by owners of 30% for ships registered in countries appearing on the grey list and 60% for ships registered in countries appearing on the black list. Articles 27(2) and 40(2) provide that corresponding surcharges are payable by charterers and managers, respectively.

On the basis of the annual report of the Paris MOU for 2017, the Deputy Ministry of Shipping has determined that the flags listed below are included in the relevant grey or black list for the purposes of calculating tonnage tax for 2018.