Marshall Islands Registry Circular 10-12-2014 – Frequency, Identification Numbers, Testing and Disposition of Satellite EPIRBs.

TO: ALL SHIPOWNERS, OPERATORS, MASTERS AND OFFICERS OF MERCHANT SHIPS, AND RECOGNIZED ORGANIZATIONS

PURPOSE:

This Notice describes the frequency and unique identification code assigned to satellite Emergency Position-Indicating Radio Beacons (EPIRBS) to enable Rescue Coordination Centers (RCCs) responsible for Search and Rescue (SAR) operations to detect and identify vessels in distress and how they differ from Maritime Mobile Service Identity (MMSI) numbers. This Notice supersedes Rev. 6/12 and reflects the updating of COSPAS-SARSAT Guidelines on 406 MHz Beacon Coding, Registration and Type Approval as referenced above to include the website address where the latest issue may be found and the addition of new section 5.0 on the issues particular to the disposition of EPIRBs.

Read Circular: MI Circular 10-12-2014

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International Convention on Standards of Training, Certification and Watchkeeping for Seafarers

To all Registered Owners, Registered Bareboat Charterers, Managers and Representatives of Ships flying the Cyprus Flag.
Subject: International Convention on Standards of Training, Certification and Watchkeeping for Seafarers, STCW 78, as Amended- Issue of Seafarer’s Endorsements Attesting the Recognition of Non Cyprus Certificate
I refer to the above subject and I wish to inform you that the Countries whose certificates of competency are presently recognised by the Republic of Cyprus are the ones listed on the following table:
LIST OF COUNTRIES WHOSE CERTIFICATES OF COMPETENCY ARE PRESENTLY ACCEPTED FOR THE ISSUE OF ENDORSEMENT ATTESTING THE RECOGNITION OF NON CYPRUS CERTIFICATE OF COMPETENCY.

Read circular: Cyprus Shipping Registry Circular (20-11-2014)

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The Limassol Marina

Limassol Marina is the latest waterfront development creating waves in the Eastern Mediterranean. A milestone project for Cyprus, and the first superyacht marina on the island, it has already established itself as one of the most attractive and unique projects across Europe.
A new thriving hub on the south coast, it offers 650 berths for yachts up to 110m, 162 luxury apartments and 74 exclusive villas, with private berths or direct access to the beach. It also benefits from dining and shopping establishments, spa and fitness facilities, and a listed building which houses a marine training school and cultural centre for events throughout the year. Located in the heart of a vibrant city, it is surrounded by a rich history and a diverse, international community.
Despite the challenges of the past few years, Limassol Marina’s construction began in 2010. The first residences were delivered to their owners in January 2013 and, since then, various phases have been completed, accounting for the success of its sales and rising reputation of its yachting facilities. It became an official Port of Entry in April 2013, when it also welcomed its first yachts, and opened its gates to the public in June 2014 with the operation of its restaurants, cafes, bars and shops.
Limassol Marina’s masterplan has produced a broad range of residential opportunities within the development’s boundaries. Sales for the exclusive residences have exceeded expectations, with a total of 75% of the apartments and 25% of the villas now sold, all enjoying uninterrupted views of the Marina and the sparkling Mediterranean.

Limassol Marina

Between Nereids, Thetis and Dioni Residences, each apartment complex has its own unique identity, appealing to its buyers’ individuality. The 94 apartments at Nereids Residences are situated within a beautifully integrated neighbourhood distinguished by uninterrupted sea views, open space and a communal swimming pool. Thetis Residences are a further cluster of 13 apartments just steps away from the sea and in close proximity to Limassol Marina’s fashionable shopping and dining area. Now under construction and almost sold out, the 14 residences at Dioni offer an edge and convenience that differs from the rest. Overlooking the main square and adjacent to its stylish shops and elegant boutiques, they have the option of privacy, with the buzz of the Marina unfolding beneath them.

The exclusive Peninsula Villas, to be completed in the beginning of 2015, offer owners the opportunity to moor their yacht outside their home or simply step out onto the beach from their own garden. Unique and highly anticipated, they capture the essence of living on the sea and feature their own private berths just a stroll away from the heart of the cosmopolitan city of Limassol. The Island Villas are also underway, combining the ultimate in privacy and exclusivity, surrounded by the sea.

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Limassol Marina is the first full service marina in Cyprus. It provides facilities and services of the highest standard, combined with a team of experienced marina professionals to ensure the smooth running of all operations. Every berth has access to fresh water, electricity, fibre optic network providing high speed broadband, high-speed wireless internet and telephone, fuel and waste removal. There are also haul out and shore-side technical facilities, a 100 ton travel lift and 40 ton trailer, slipway, fuel station, helipad and boatyard for light repairs and maintenance, combined with 24-hour security and concierge services.

With a mix of international and local cuisine to satisfy all tastes, the restaurants, lounge bar, fish tavern, wine bar and cafés along the waterfront promenade are all set in their own identifiable environment, with views of the yachts and the sparkling Mediterranean. The commercial area is complemented by direct access to a covered visitor parking facility for 750 cars. Convenience shops and fashion boutiques are also open throughout the week and weekend.
Exuding charm in an unrivalled environment, Limassol Marina offers the perfect blend of luxury and elegance, comfort and convenience, privacy and community. Unique, rare in its concept and a first for Cyprus! A modern resort at one with history and the natural beauty of the Mediterranean, with easy access to all that Limassol has to offer.

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With all the trimmings of a luxury waterfront development and modern marina, this ground-breaking project has already changed the face of Limassol town. Continuing to make history, it has welcomed 81.8m and 97.2m megayachts and sales of its exclusive residences have surpassed €155 million.

Please Contact Us for any matter regarding the Limassol Marina.

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Cyprus yacht leasing scheme

The new guidelines issued by the Cypriot VAT authorities with regards to the registration of yachts, simple to comprehend
and apply, make Cyprus one of the most attractive jurisdictions in the EU in this area, reducing the effective
VAT rate for yacht registration to as low as 4.37%, through the use of the Yacht Leasing scheme.

General

This special regime applies to yachts owned by a Cyprus company which are leased to physical or legal persons.
The purpose of this scheme is to determine the percentage of time a yacht spends within the EU based on the yacht
size and type and apply VAT according to this percentage.

Interpretation of the term “leasing a yacht” and VAT treatment

For the purpose of this scheme a yacht lease agreement is an agreement under which the lessor, being the owner
of the yacht, for a certain consideration, contracts the use of the yacht (leases the yacht) to the lessee.
For Cypriot VAT purposes the lease of a yacht is subject to the standard VAT Rate (19%) to the extent that the leased
yacht is used within EU waters.

However, further to the Yacht leasing scheme, there is no longer need to keep records (log books) as to the time the
yacht is used within the EU. Instead, the relevant percentage will be calculated based on the yacht’s size and type
(motor or sailing boats), in the manner indicated below:

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Malta Yacht leasing scheme

On the 29th July 2013, the VAT Department published guidelines in relation to the Malta VAT treatment of short-term yacht charters starting in Malta, which guidelines are largely similar to the interpretation which is applicable to long-term yacht leases.

What is a short-term charter agreement of a yacht?

A short-term charter of a yacht is an agreement whereby the yacht owner/operator contracts the use of the yacht for a consideration with a crew or on a bare boat basis. The term of the charter cannot be more than 90 days.

How is the charter agreement treated for VAT purposes?

For VAT purposes, the short-term charter of a yacht to be used for leisure purposes is a supply of a service which is taxable at the standard rate of VAT. The place of taxation is the place where the yacht would actually be placed at the disposal of the customer, in this case in Malta. Subject to certain conditions, the taxation of this supply would be limited to that portion of the use of the yacht within the territorial waters of the European Union (EU).

How is the use of a yacht within EU territorial waters calculated?

It is very difficult to physically trail the movements of a yacht in order to determine the period during which the yacht is used within the territorial waters of the EU and the period during which it is used outside the EU. In this regard, these guidelines set out to establish the estimated percentage portion of the charter based on the time that the yacht is made use of within the territorial waters of the EU. These percentages are set according to the length of the yacht and its means of propulsion (power or sailing). The standard rate of VAT of 18% is applied on the established percentage of the charter deemed to be related to the use of the yacht within EU territorial waters. The table below indicates the applicable established percentage portions:

Type of Boat % of lease taking place in the EU Computation of VAT
Sailing boats or motor boats over 24 metres in length 30% 30% of consideration x 18%=5.4%
Sailing boats between 20.01 to 24 metres in length 40% 40% of consideration x 18%=7.2%
Motor boats between 16.01 to 24 metres in length 40% 40% of consideration x 18%=7.2%
Sailing boats between 10.01 to 20 metres in length 50% 50% of consideration x 18% =9%
Motor boats between 12.01 to 16 metres in length 50% 50% of consideration x 18% =9%
Boat permitted to sail in protected waters only 100% 100% of consideration x 18%=18%

Example:
Sailing yacht over 24 metres in length will now be presumed to have sailed in EU waters for 30% of the time during which it was lease-purchased and therefore the VAT payable on the lease is the normal rate of VAT (18%) but only for 30% of the duration of the lease, i.e. 5.4% VAT on the value of the lease-purchase.

In order to apply these guidelines the following conditions shall apply:

  • The supplier of the yacht charter shall be a person registered for VAT in Malta
  • The yacht charter contract shall indicate the place where the charter commences (i.e. Malta), the charter price and a statement that the yacht shall sail outside EU waters. The VAT Department reserves the right to request proof of any payment in connection with the charter
  • Upon application, the supplier of the charter has to produce sufficient documentation to identify the yacht with regards to hull number, port of registry, registration number, and any further documentation confirming the size and type of yacht
  • Following submission of these documents, and provided that the conditions are met to the satisfaction of the Director General (VAT), the applicant shall be informed in writing regarding the applicable portion of the charter fee which would be subject to VAT
  • Approval must be sought in writing from the VAT Department and each application shall be considered on its own merits

The Director General (VAT) reserves the right to impose any other conditions he may deem necessary on a case by case basis and he may also refuse any application. Furthermore, the Director General (VAT) can also perform checks to confirm the actual use of the yacht outside of EU waters and may also request the owner/operator of the yacht to submit details about the voyage and the hire, even after the completion of the charter

Input tax

The supplier of the charter would have the right to claim input tax incurred on the fuelling and provision of the boat provided that these goods would be sold to the client of the charter under a separate contract or provided that they would be invoiced separately from the charter service. The supply of these goods to the charter client would have to be made at the full standard rate of VAT. Furthermore, the supplier of the charter would also be entitled to claim input VAT incurred on fuel purchased for the outward journey of the yacht to its next port of destination after the completion of the charter. Terms and conditions apply in terms of the law.

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Yacht Registration Centre, Y.R.C

15 Agiou Pavlou
Nicosia - 1105
Cyprus

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Phone: +357 22 55 66 77
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