Gold Magazine June - July 2013, Issue 27 | Page 67

HORWATH DSP LIMITED

I do. Cyprus now has a European Unionapproved Open Registry. The new tonnage
tax system covers the main shipping activities of ship owning, chartering and management companies, and ancillary services such
as towing, dredging and cable-laying. The
new system also allows for mixed activities
to be subject to tonnage tax and corporation
tax. The low rates of tax and the comprehensive tax system should help Cyprus retain
its existing shipping companies and attract
new ones.

proposals put forward by the shipping community.

The major Cyprus-based ship owning and
ship management companies have already
declared that they intend to stay here and
support the country as it seeks to reform
its economy and banking sector. What
else can the government do to encourage
others to follow?
In my opinion the Government, through
the Department of Merchant Shipping, is
doing a lot to support the shipping industry.
A good show of support for the shipping industry was the setting up of a dedicated desk
within the Central Bank in March (when
the banks were closed for a couple of weeks)
to ensure that payments could be effected so
that Cyprus-owned/managed vessels could
refuel and their crews could be paid.
There are three things that the government
can do to encourage shipping companies to
stay here and others to move to Cyprus:
• As soon as possible, to lift all restrictions on
banks, assist the Bank of Cyprus to exit the
resolution stage and put an end to the current economic uncertainty.
• Devise a marketing strategy worldwide to
improve the image of Cyprus and to promote Cyprus as a European financial and
shipping centre.
• Urgently implement all the improvement

• Compliance and advice on the Cyprus
Tonnage Tax System
• Compliance and advice on Cyprus shipping VAT issues
• Advice on mergers and acquisitions
• Advice on structuring of shipping groups
• Feasibility studies
• Administration, accounting and audit
We take pride in providing a timely and
competent service of the highest quality.

What kind of services does Horwath DSP
offer to the shipping industry?
As a member of Crowe Horwath International, our firm is connected with offices in
the world’s major shipping centres such as
Hamburg and Singapore, and can therefore
assist clients worldwide. Horwath DSP offers
a range of services to the shipping industry as
summarised below:

Since shipping is a global industry, the
sector in Cyprus is affected by events and
trends beyond its control. What advice
can you give your clients during the years
when the industry is experiencing a slowdown?
The shipping industry had been affected by
the financial crisis long before we began to
see signs of a slowdown in Cyprus. Since
shipping is a cyclical business, it is of immense importance to act against the cycle.
In recent years there has been a significant
slowdown in the shipping industry, and now
should be the time to invest into new, more
efficient vessels, or in second- hand buildings
at low prices. To make matters worse, along
with this historically long-lasting shipping
crisis, we now have the ongoing financial

The shipping industry
had been affected by the
financial crisis long before
we began to see signs of
a slowdown in Cyprus.

offers audit, tax, risk and advisory
solutions to a diverse portfolio of
clients in Cyprus, the region and
the world. As a member