Brussels, 07/09/2005 (Agence Europe) - The European Commission decided on Wednesday to launch an in-depth investigation into two fiscal incentives adopted by Sicily in a regional law (29/12/2003 No. 21), providing for a 5-year exemption from the Italian tax on regional production activities (IRAP) in favour of companies from certain sectors with their registered office, place of effective management and production activities in Sicily. The first scheme offers a 5-year exemption from IRAP for new firms who from the year 2004 started operating in tourism, hotel, cultural goods, agro-feeding, informatics and telecommunications sectors and all new firms starting business from 2004 onwards with turnover of less than EUR 10 mil. In addition, as from 2004, a five year exemption is provided on the part of IRAP due on the share of the tax base exceeding the average tax base of the years 2001-2003 for all existing firms, except chemical and petrochemical firms. The second scheme creates a Euro-Mediterranean Centre of Finance and Insurance Services, which consists of subsidiaries of finance and insurance companies which collect funds on the international markets to be used exclusively out of Italy by non-Italian residents. Such companies get a 50% cut in the rate of IRAP for activities made within the Centre; exemption from duties on regional concessions; paying a fixed fee instead of the registration duty, the mortgage tax and rates; and exemption from Italian corporate tax on revenues produced in Sicily.