PARIS: The European Commission has closed an in-depth investigation into French tax rules for maritime companies, after France said that it would enforce minimum flagging requirements for tonnage regime taxpayers.
The investigation into the French tonnage tax scheme was opened in November 2013, with the aim of examining whether, after changes to eligibility criteria, the regime remained in line with European Union (EU) state aid rules. The Commission was also concerned that the favorable fiscal benefits offered to certain vessels sailing under non-EU flags would run counter to the objectives of the EU’s maritime transport policy.
Under the tonnage tax scheme, a shipping company can be taxed on the basis of the tonnage of its fleet, rather than its actual profits.
