The Shipping Deputy Ministry has issued Circular 1/2020
informing shipowners, charterers and ship managers that, following
the formal assessment of the Cyprus tonnage tax scheme, the
European Commission has concluded that Cyprus's relevant scheme
is compatible with the internal market and in line with the
Guidelines on State Aid to Maritime Transport.
In its decision, the European Commission concluded that the
Cyprus tonnage tax and seafarer scheme is in line with EU state aid
rules as it contributes to the competitiveness of the EU maritime
sector and encourages ship registration in Europe, while
simultaneously preserving Europe's high social, environmental
and safety standards and ensuring a level playing field.
