Tonnage Tax – Countries Whose Ships Are Subject To Surcharge

In order to promote its objective of improving the quality of Cyprus shipping, the Merchant Shipping (Fees and Taxing Provisions) Law of 2010¹ imposes a surcharge on the tonnage tax payable in respect of qualifying vessels registered in countries which appear on the 'grey list' or 'black list' of the Paris Memorandum of Understanding (MOU). Sections 17(2), 27(2) and 40(2) respectively provide for a surcharge, payable by owners, charterers or managers, of 30% for ships registered in countries appearing on the grey list and 60% for ships registered in countries appearing on the black list.

On the basis of the annual report of the Paris MOU for 2013, the Department of Merchant Shipping has determined that the countries listed below are included on the relevant grey or black list for the purposes of calculating tonnage tax for 2014.