Ship Management Services

  • Income derived from the rendering of ship management services is subject to tax at the rate of 4, 25%.
  • The rendering of ship management services to ships allows a company the option to:
  1. Be taxed on its profits at the rate of 4,25%, or
  2. Pay 25% of the gross tonnage tax of the ship. The tonnage tax is not levied in respect of ships under Cypriot flag, for which a tonnage has already been paid.

The term Ship Management Services includes recruitment of crew, as well as services relating to technical and financial management of the ship, under certain conditions.