Notifications Under The Tonnage Tax Law

The Department of Merchant Shipping ("DMS") has issued a number of Notifications giving guidance on its interpretation of certain aspects of the Merchant Shipping (Fees and Taxing Provisions) Law of 2010 ("the Tonnage Tax Law").

Deadline for applications to be included in the tonnage tax scheme for 2011

Qualifying Cyprus tax-resident owners of foreign ships, charterers and ship managers may opt to be taxed under the tonnage tax scheme in respect of any particular fiscal year under the provisions of section 7, section 19 and section 29 respectively of the Tonnage Tax Law.

In order to do so they must submit a completed Application for Approval of the Option to be taxed under the Cyprus Tonnage Tax System on form MS TT 1 to the Director of the Department of Merchant Shipping, with a copy to the Commissioner of Income Tax, no later than thirty days before the beginning of the relevant year.