By Jean Christou
ALMOST 70 per cent of Cyprus-flagged vessels checked by the Department of Merchant Shipping in the third quarter of this year were deficient.
In a report on its third quarter activities published yesterday, the Department said that between July and September 66 ships had been inspected and deficiencies found on 45.
Twelve ships were inspected by departmental surveyors, all of which were deficient.
Cypriot inspectors stationed at various ports around the world inspected 54 vessels and found deficiencies on 33.
Special inspections were carried out on seven older ships, compared to five in the previous quarter.
During the same period, the Departments conducted occasional audits on seven companies in accordance with the provisions of the International Safety management Code.
In an effort to improve the safety record and the image of the Cyprus fleet – which ranks sixth in the world with 2,667 vessels – the government has reconsidered its policy on the registration of ships on the Cyprus Registry.
The main steps to be taken from January 1 include a reduction in the age of ships that can be registered from 17 to 15 years.
Other new measures will be introduced for fishing vessels. All Cypriot flagged trawlers will be required to obtain a licence from the Fisheries department, irrespective of whether they fish in or out of Cyprus’ territorial waters. The new regulations are part of Cyprus’s harmonisation with EU legislation, which aims at the preservation of the world’s fishing stocks.
The government has also introduced a new taxation regime for ship management services. Until recently, Cypriot ship management companies were taxed at the rate of 4.25 per cent on their net earnings. The new regime covers the three basic types of internationally accepted ship management services (crewing, technical and commercial management of ships).
The new regime provides that no tax will be levied on companies for income derived from their services for the period ending December 31, 2020.
Instead, companies will be levied on the tonnage of the ships to which they provide services.
Companies will be given the choice in any fiscal year to opt for taxation under the new method or according to the island’s income tax laws.
