Managing Tonnage Tax

In view of the challenges currently faced in the industry favourable tax and other incentives play an important role. The different tax and VAT rates applicable to different types of revenue and profits arising from shipping and shipping related activities can sometimes complicate matters.

How PwC can help you

Cyprus plays a prominent role as a leading Shipping and shipmanagement centre and will continue to strengthen its position in the world economy by maintaining and enhancing its sound maritime infrastructure, favourable tax regime and competitive ship registration and annual tonnage tax rates. The tax incentives combined with the economic and the other advantages provided, including the excellent infrastructure, make Cyprus the ideal choice for shipowners, charteres and shipmanagers (You may visit our publication: "Cyprus Shipping: A sea of opportunities"). We can assist on your decision on the most suitable tonnage tax model plus how and where to locate your shipping activities will depend on the circumstances and your activities. And usually it will be based on a combination of tonnage tax regime, ship financing, freight taxes, wage cost deduction for seafarers and the general tax system. Our PwC network of highly experienced and dedicated shipping experts can assist you in deciding how to structure your shipping business and advice companies with the selection of the most appropriate tonnage tax and other favourable tax regimes.