On Thursday 27 July, the European Commission asked Belgium and France to abolish the corporate tax exemptions granted to their ports, to comply with EU rules on state aid.
Belgium applies a special corporate tax regime to several maritime and river ports, which is based on a different tax base and different rates from the general corporate taxation regime. In France, 11 major maritime ports, the autonomous port of Paris and several ports operated by chambers of commerce and industry are exempted from corporate taxation.
Following a formal examination procedure (see EUROPE 11590) launched on 8 July 2016, the Commission found that the corporate tax exemptions enjoyed by Belgian and French ports constituted a competitive advantage incompatible with EU rules on State aid. In particular, it argued that the special regimes did not pursue any clear objective of public interest, such as promoting mobility or multi-modal transport. However, the sums recovered by ports are used to finance their activities or to subsidise the prices they invoice to their clients, to the detriment of their competitors.
Both countries now need to change their rules by 1 January 2018, so that their ports are subject to the national general corporate taxation regimes from the beginning of next year.
The Commission has also requested information from the member states regarding the taxation of ports and continues to evaluate their functioning in order to guarantee fair competition conditions in the sector.
The French minister for transport, Élisabeth Borne, reacted in a press release in which she states that she takes note of the decision. Although she states that she will respond to the Commission, she stresses that she will remain bound by two objectives: maintaining fair competition between European ports and preserving the economic model of French ports. (Original version in French by Lucas Tripoteau)