In June 2009 the European Commission provided new and detailed guidance on state aid granted to ship management companies, complementing the 2004 guidelines on state aid to maritime transport. The new guidance confirms that tonnage tax may be applied to all ship managers, as long as they contribute to the development of the European maritime cluster and that they make a commitment to implement the Maritime Labour Convention 2006 ahead of its entry into force.
The 2004 guidelines restricted tonnage tax schemes to ship managers providing a complete package of technical and crew management for the same ship, with a commitment to re-examine the issue after three years. The Commission accordingly reassessed the matter and concluded that there was no justification for penalising partial outsourcing as compared with full outsourcing. Accordingly, crew management and technical management of ships will now also be eligible when they are supplied separately, subject to the ships managed being fully compliant with international safety rules, and subject to crew managers applying the main provisions of the 2006 Maritime Labour Convention, ahead of its entry into force.
The Cyprus government has announced that it now intends to publish a new draft law on shipping taxation which will further improve Cyprus's attractiveness as a shipping centre, with the aim of it being in force by the beginning of 2010.
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