EU opens probe into tax incentives for Polish shipyards

The EU’s executive said it was concerned the system would give some shipyards an advantage over competitors.

In September 2016, Poland adopted a law giving shipyards operating in the country an option of paying a 1% flat-rate tax on sales from the building and conversion of ships, instead of paying the generally applicable corporate or personal income tax, the commission said.

In addition, the payment of the flat-rate tax is postponed until the building or conversion of a ship is completed, the commission said in a statement.

It added: “The commission does not question Poland's right to decide on its tax system. However, under the EU Treaty the commission has to verify that the tax system respects EU state aid rules and does not selectively favour certain companies over others.”

The commission said it started looking into the proposed tax incentive for shipyards after Poland notified the measure to the EU’s executive in December 2016.

(pk/gs)

Source: europa.eu