CYPRUS Trends and Developments Contributed by: Adam Montanios and Nicolas Montanios, Montanios & Montanios LLC
Pillar Two Legislation Cyprus recently transposed Council Directive (EU) 2022/2023 into local legislation relating to a global minimum level of taxation at 15% on mul - tinational enterprises and large domestic groups with annual consolidated revenues exceeding EUR750 million. The Pillar Two legislation includes an exclusion for shipping income, covering profits earned from the transportation of passengers or cargo in international traffic. This is an important exemption for maritime groups using the Cyprus flag, since the Cyprus TTS results in an effective rate of tax which is lower than the minimum tax rate of 15% under such legislation.
The Shipping Deputy Ministry is confident that the wealth of knowledge and experience brought to the Committees by such members will undoubtedly contribute to the growth and excellence of the Cyprus Maritime Sector. Proposed Amendment of the Cyprus Merchant Shipping (Registration of Ships, Sales and Mortgages) Law The Shipping Deputy Ministry has recently announced that it is working on a number of amendments to the above-mentioned law relat- ing to issues that will increase the competitive - ness of the flag and assist in a number of mat - ters. The related bill is currently being drafted and is expected to be brought before parliament by mid-2025.
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