EU Not Happy with Greek Maritime Tax

ECCJ The European Commission has sent a set of proposals to Greece asking it to change its maritime tonnage tax to exclude all maritime sector intermediaries and operators of ships, which do not provide maritime transport services. The commission said that the Greek tonnage tax system is not well targeted and that the current provisions may breach EU state aid rules by allowing shareholders of shipping companies to benefit from favourable tax treatment that should be reserved for maritime transport providers. Greece now has two months to inform the commission whether it agrees to the measures proposed and to review which vessels are eligible under its system, therefore excluding fishing vessels, port tugboats, and yachts rented out to tourists without a crew from the preferential regime. Preferential tax treatment should also be removed for insurance intermediaries, maritime brokers and other maritime intermediaries as well as the shareholders of shipping companies. The proposals do not concern the core of the Greek shipping economy, notably the operation of bulk carrier and tanker vessels. If the country agrees to the proposed amendments, it would need to change its national rules with effect from 1 January 2019 at the latest. Based on the Greek system currently in place, the shipping companies are enjoying lucrative tax breaks which allow them to pay a voluntary amount, all with the aim of keeping owners in Greece. These include no taxes on profits from shipping operations, and no taxes on ship sales. As World Maritime News reported, the Greek government promised in July to hike taxes on shipping companies in its latest proposal submitted to its euro zone creditors under its bailout plan agreed with the EU.