EC takes further action on corporate taxation of Dutch, French, Belgian and German ports
This week, the European Commission DG Competition announced the launching of an in-depth investigation to verify whether exemptions from corporate tax granted under Dutch law to public companies, including port operators, are in line with EU state aid rules, ESPO said in its press release.
The decision follows the request from the Commission to The Netherlands to abolish tax provisions exempting certain public companies from the obligation to pay corporate tax. The Dutch authorities expressed their intention to keep a number of exceptions in particular for five seaports: Rotterdam, Amsterdam, Zeeland, Groningen and Moerdijk. Given that the Dutch authorities have not fully accepted the measures proposed by the Commission to ensure compliance with the state aid rules, the Commission has now opened an in-depth investigation.
In parallel, the Commission has also informed France and Belgium of its concerns regarding the taxation of ports in these countries and has asked Germany to provide further information to ensure that there are no undue competitive advantages being granted to ports.
The Commission continues examining taxation of ports in other Member States and has found indications of sectorial tax exemptions for ports or of other sectorial advantages such as reduced tax rates. In certain Member States, ports are not subject to corporate tax but to an alternative tax regime that might be more favourable. In other Member States, ports do not actually pay any corporate taxes because they are loss-making. This raises questions about whether the public financing of those ports, for example the recurrent compensation of their losses, respects EU state aid rules.
