Global

Details

  • Service: Tax, International Corporate Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 7/25/2012

Malta - Tonnage tax regime under EC investigation 

July 25:  The European Commission (EC) has opened an investigation to examine whether the Maltese tonnage tax regime is compatible with EU state aid rules.

According to an EC release (IP/12/843, 25 July 2012), the EC is concerned that the favorable tax treatment allowed under EU guidelines on state aid for maritime transport of passengers and freight may have been inadvertently extended to other categories of beneficiaries that are not in need of relief from lower taxes.


Specifically, because the tax burden for a given tonnage is lower in Malta than in other EU Member States—potentially making the Maltese tonnage tax system more attractive than ones in the rest of Europe—the Maltese regime could lead to distortions of competition in the EU internal market by potentially attracting companies and vessels from other EU Member States.


The opening of the investigation allows interested parties the possibility to comment on the measures; it does not prejudge the outcome of the investigation.




©2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to go-fmtaxnewsflash@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

 

Share this

Share this

Subscribe

Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)


Already a Subscriber? Login


Not a member? Subscribe now

Contact us