The Netherlands has been required to abolish an exemption from corporate tax for six of its ports by the Commission, while Belgium and France have been told to align their taxation of ports with state aid rules.
In order to ensure that its ports are all subject to the same corporate taxation rules, the Netherlands has two months to take the necessary steps to abolish exemption provisions on six ports.
Commissioner Margrethe Vestage, said: “Ports are key infrastructure for economic growth and regional development.”
“The Commission’s decisions regarding the Netherlands, Belgium and France make clear that if port operators generate profits from economic activities these should be taxed under the normal national tax laws to avoid distortions of completion”
In May 2013 complaints led to the Commission asking the Netherlands to abolish provisions exempting certain public companies from corporate tax.
Following this the Netherlands adopted a law making public undertakings subject to corporate tax as of 1 January 2016, but the law maintained tax exemption for six ports.
Groningen Seaports N.V., Havenbedrijf Amsterdam N.V., Havenbedrijf Rotterdam N.V., Havenschap Moerdijk, N.V. Port of Den Helder and Zeeland Seaports, were the six ports involved.
The Commission has viewed that both Belgium and France's existing regimes give the ports an advantage that may breach EU state aid rules.
Therefore, it has proposed measures to adapt their legislation in order to ensure public and private ports pay corporate tax on economic activities.
In Belgium, a number of sea and inland waterway ports are exempt from the general corporate income tax regime.
These notably include the ports of Antwerp, Bruges, Brussels, Ostende, and others as well as along the canals in Hainaut Province and Flanders.
Due to these ports being subject to a different tax regime, with a different base and tax rates, there is an overall lower level of taxation for Belgian ports as compared to other companies in the country.
The same was concluded, in a separate decision, about a number ports in France, where most are fully exempt from corporation income tax.
Those involved include the Port autonome de Paris and 11 ‘grands ports maritimes’, which included Bordeaux, Dunkerque, La Rochelle, Le Havre, Marseille, Nantes – Saint-Nazaire and Rouen and others, as well as ports operated by chambers of industry.
Both countries have two months to react to the Commission’s verdict.
