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Image header Agence Europe
Europe Daily Bulletin No. 11164
ECONOMY - FINANCE - BUSINESS / (ae) taxation

Greece required to end discriminatory taxation of foreign ships

Brussels, 26/09/2014 (Agence Europe) - On Thursday 25 September, the European Commission asked Greece to amend its discriminatory taxation rules for foreign-flagged ships. Under Greek tax rules, Greek-flagged ships and certain vessels managed from Greece are exempt from income tax and instead subject to the simplified and lower special tonnage tax for maritime activities. Foreign-flagged ships, on the other hand, are subject to the less favourable income tax regime. Additionally, Greek legislation allows an income tax exemption for dividends from entities using Greek-flagged ships, but not for dividend from companies using foreign-flagged ships. The Commission considers that such rules are contrary to EU rules on the freedom of establishment, the freedom to provide services and the free movement of capital. The Commission's request takes the form of a reasoned opinion. I f Greece fails to comply within two months, the Commission may refer the matter to the European Court of Justice. (EL)

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