Profits from Shipping Activities

The following are exempt from taxation in accordance with the provisions of the Merchant Shipping (Fees and Taxing Provisions) Law and are subject to tonnage tax:

• The income of a qualifying ship-owner or a qualifying chartered of a qualifying Cyprus, community and/or foreign (conditions apply) ship from the operation of such ship in any qualifying shipping activity between Cyprus and ports abroad or between ports abroad.
• The income of a qualifying ship operator person from the provision of ship management services of the crew and/or technical administration services.
• Dividends paid to the shareholders of a company if these are paid out of profits earned from the operation of a Cyprus qualifying ship in shipping activities or from the provision of ship management services.
• Salaries and other benefits paid to the master, the officers and the crew of a Cyprus qualifying ship.