7th December 2024 – 13th December 2024
LOCAL NEWS
1. Cyprus Approves Pillar II Global Minimum Tax
The Cyprus House of Representatives reportedly approved the Law on a Global Minimum Level of Taxation of Multinational Enterprise Groups and Large-Scale Domestic Groups on 12 December 2024, which transposes Council Directive (EU) 2022/2523 of 14 December 2022 for the implementation of the Pillar 2 global minimum tax. The Law provides the introduction of the Pillar 2 income inclusion rule (IIR) and the undertaxed payment/profit rule (UTPR) in order to ensure a minimum tax level of 15% for MNE groups with annual consolidated revenue of at least EUR 750 million in at least two of the last four immediately preceding financial years. The law also provides for the introduction of a qualified domestic minimum top-up tax (QDMTT). The IIR applies to fiscal years beginning on or after 1 January 2024, while the UTPR and the QDMTT apply to fiscal years beginning on or after 1 January 2025. It is uncertain why the QDMTT does not apply until 2025 since it should apply from 2024 as per the Directive.
Please tab the links below for more details on this action.
Related Articles:
EY 13/12 - Cyprus introduces Global Minimum Tax for MNE groups and large-scale domestic groups
Kathimerini 12/12 - Ναι από τη Βουλή στο φόρο πολυεθνικών
Stockwatch 12/12 - Υπερψηφίστηκε ο φόρος 15% σε πολυεθνικές
Orbitax 12/12 - Cyprus Approves Pillar 2 Global Minimum Tax
INTERNATIONAL NEWS
2. EU agrees on 15th package of sanctions against Russia
On the 11th December 2024, the Hungarian Presidency announced on X (Twitter) that the EU Ambassadors have agreed on the 15th package of sanctions in reaction to Russia's aggression against Ukraine.
The package adds more persons and entities to the already existing sanctions list, and targets entities in Russia and in third countries other than Russia, mainly Chinese Firms, that indirectly contribute to Russia’s military and technological enhancement through the circumvention of export restrictions.
The main focus of the 15th package is the so-called "shadow fleet" that Russia has been using to bypass the price cap that Western allies introduced in late 2022 to curtail the sales of Russian seaborne oil worldwide.
The cap was set at $60 per barrel for crude oil and prohibits Western companies from providing services to Russian tankers, such as insurance, financing and flagging, that sell crude oil above the agreed-upon price.
Furthermore, he adopted constrain the activity of additional vessels of third states operating to contribute or support actions or policies supporting Russia’s actions against Ukraine.
According to Euronews, specific details of the restrictions were not immediately available but the package is believed to be modest compared to previous decisions. The discussions began last month and proceeded with little controversy among countries.
The sanctions will not be adopted until after the EU Foreign Ministers approve the package on Monday, 16th December 2024 and are expected to target approximately 30 entities, over 50 individuals and 45 tankers.
Our Union will examine in close cooperation with the Cyprus Authorities how the implementation of the new measures will be effected and how they will affect the Cyprus and International Shipping Industry.
Related Articles:
X 11/12 - Hungarian Presidency - Adoption of 15th Package of Sanctions
Reuters 11/12 - EU slaps new sanctions on Russian shadow fleet, Chinese dronemakers
Euronews 11/12 - EU slaps new sanctions on Russia targeting 'shadow fleet' of oil tankers
Politico 11/12 - EU approves new sanctions on Russian ‘shadow fleet’
Brusselstimes 11/12 - EU agrees to impose sanctions on more ships from Russia's ghost fleet
Safety4sea 11/12 - EU agrees on 15th package of sanctions against Russia
3. Innovation Fund: Launch of the General Call & the Hydrogen Auction
On the 3rd December 2024, the European Commission launched the following calls:
2024 Innovation Fund call
Projects can apply for “large scale projects” (budget of €1.2 billion), “medium scale projects” (budget of €200 million), “small scale projects” (budget of €100 million), “clean-tech manufacturing” (budget of €700 million) or “pilot” (budget of €200 million).
According to ECSA, for maritime sector projects, the Commission has revised the criteria related to the number of port calls. When the projects concern investments on ships, those ships must:
- carry a flag of an EU Member States or an EEA country and call ports under the jurisdiction of an EU Member State or EEA country on a regular basis (at least 15% of their calls on ports over two years); or
- call ports under the jurisdiction of an EU Member State or EEA country on a regular basis (at least 30% of their calls on ports over two years); or
- perform service or support activities in ports under the jurisdiction of an EU Member State or EEA country.
2024 Hydrogen Auction
At the same time, the second auction of the European Hydrogen Bank, which includes a maritime envelope, was announced, aiming to accelerate the production of renewable hydrogen within the European Economic Area (EEA).
This auction will allocate €1.2 billion to support the production of green hydrogen in the European Economic Area (EEA). As you can see in the enclosed “auction call for proposal”, €200 million is allocated to the maritime envelope. Bidders have until 20 February 2025 to apply on Calls for proposals | EU Funding & Tenders Portal.
Like last year, the Commission is also offering an ‘Auctions-as-a-service' mechanism, which allows Member States to finance projects that had bid in the auction but were not selected for Innovation Fund support due to budgetary limitations.
Related Articles:
Attachment 1: EU INNOVATION FUND - CALL FOR PROPOSALS
Attachment 2: EU COMMISSION: INNOVATION FUND METHODOLOGY
Attachment 3: EU COMMISSION - INNOVATION FUND TERMS AND CONDITIONS
4. US TREASURY REPORT
The US Treasury Report for all actions reported is hereby attached.
Related Article:
Attachment 4: US Treasury Report for week 07/12/2024 – 13/12/2024
5. PIRACY REPORT
The Piracy Report for all actions reported is hereby attached.
Related Article:
Attachment 5: Worldwide Threat to Shipping (WTS) Report, for the period between 13/11/2024 – 11/12/2024
Nothing important to report from the IMO and the ILO.