Profits or Dividends payable by a shipping company registered in Cyprus, which owns ships flying the Cyprus flag and operates in International waters, are exempt from Cyprus Taxation.

The salaries of the officers and the staff of a ship which is registered in Cyprus, fly the Cyprus flag, and operates in international waters are exempt from tax.

Defence Fund Special Contribution

Dividends derived directly or indirectly from profits generated from the exploitation of a ship under the Cypriot flag, or from the rendering of ship management services, are not subject to special contribution to the defence fund.