On Monday 15 January, the European Commission opened an in-depth investigation into a Polish tax incentive scheme in favour of shipyards.
The measure, which was introduced by the Polish authorities in 2016, allows shipyards to pay a fixed tax rate of 1% on sales generated by building or converting vessels, instead of corporate taxation (19%) or on the income of natural persons (of 18, 19 or 32%). The payment of this tax is, moreover, postponed until the end of the process of building or converting the vessels.
When Poland gave notification of the regime in December 2016, the Commission did not deny the authorities their freedom to decide on their own taxation system, but questioned whether it gave certain businesses a selective advantage over others. It has concerns that this fixed-rate tax constitutes "operating aid" that may distort competition, without serving any objective of common interest for the EU.
More specifically, the institution fears that the measure may damage EU shipyards that are ineligible for the regime. The Commission also considers that it is unnecessary, as Polish shipyards are among the most competitive on the single market, on their own merit.
However, it adds that the Polish authorities may bring in other measures, such as support for research, development and innovation or regional aid to support shipyards.
Green light to investment in favour of SMEs active in shipbuilding. At the same time, the Commission approved a regional investment aid scheme to support small and medium-sized enterprises (SME) of the regions of Pomorskie and Zachodniopomorskie which are active in shipbuilding. This takes the form of subsidies, interest-rate subsidies and guarantees and has a total envelope in the region of €18 million.
Observing that the measure encourages new investments to modernise the sector and that it is proportionate, the Commission concluded that it is compatible with the Guidelines on Regional State Aid for 2014-2020. (Original version in French by Lucas Tripoteau)