The Cyprus Department of Merchant Shipping has announced that, further to its Circular 42/2010 dealing with the definition of "Community ship" for the purposes of the Merchant Shipping (Fees and Taxing Provisions) Law of 2010 ("the tonnage tax law"), it considers that the requirements and provisions with respect to the fiscal obligations of vessels registered in Germany are similar to those of the corresponding Cyprus legislation.

Consequently, the Department of Merchant Shipping will treat a vessel registered in Germany (underlying register) as a Community ship for the purposes of the tonnage tax, even in the case where the vessel is temporarily flying a non- Community flag, following the parallel registration (bareboat charter registration) of the vessel in a non-EU country. The Department of Merchant Shipping is considering the legislation of other Community Ship Registers and will issue further circulars in the event of any similar findings.