Frontline looks at Cyprus move

This month Bermuda-based shipping company Frontline Ltd will hold a special general meeting in Cyprus as Fredriksen, who also holds a Cypriot passport, is asking shareholders to approve the move. According to media reports, the company filed a document with the US Securities and Exchange Commission, saying: “Frontline believes the redomiciliation will, among other things, provide legal, administrative and other similar efficiencies.”

“As a well-established shipping and ship management center, Cyprus is expected to provide many benefits to the company, including but not limited to recruitment of experienced commercial and administrative and management personnel, a comprehensive tonnage tax regime, approved by the European Union, and a geographically advantageous position between our key market time zones,” according to the document.

Fredriksen’s salmon-to-shipping empire Seatankers Group has long had a presence in Limassol through Seatankers Management Co Ltd and the owner took up Cypriot nationality in 2006.

Cyprus’ tonnage tax system allows qualifying shipowners, charterers and managers to be subject to an annual tax referred to as tonnage tax, which is calculated on the basis of the net tonnage of the qualifying ships they own.

Eligibility for the tax regime, which was first approved by the European Commission as compatible with the EU acquis, is based on the owner being a tax resident of Cyprus, owning a qualifying ship, and having opted to be taxed under a system for a qualifying shipping activity.

Add Seatrade Maritime News to your Google News feed.