The European Commission has given its approval for the reintroduction of Italy’s “International Registry” scheme. This initiative is designed to incentivize shipping companies to register their vessels within Europe. Registering ships in Europe, as explained by the Commission, ensures adherence to higher social, environmental, and safety standards, reports Offshore Energy.
Green Light Received
The European Commission has approved the reintroduction of Italy’s shipping tax scheme, originally approved in 1998 and again in 2004, with a prolongation approved until the end of 2023. Italy notified the Commission of its intention to reintroduce the scheme until the end of 2033, and the Commission has now given its approval.
Under this scheme, eligible shipping companies that register their vessels in the International Registry will benefit from a corporate tax reduction and other advantages. These include an exemption from paying social security and welfare contributions for seafarers, a reduction in the tax on vessel insurance contracts, and a reduction in the tax on the registration of labor contracts for seafarers.
The scheme has a total budget of €5.4 billion and will remain in effect until December 2033.
In its statement, the European Commission explained that it assessed the reintroduced scheme per EU State aid rules, specifically its Guidelines on State aid to maritime transport. The Commission concluded that the scheme is both necessary and appropriate for achieving its stated objectives: enhancing the competitiveness of ship owners and operators, supporting the growth of the maritime sector, and encouraging the registration of vessels within EU/EEA ship registers.
Furthermore, the Commission determined that the scheme is proportionate, as it is limited to the minimum necessary measures and will have a limited impact on competition and trade between Member States.
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Source: Offshore Energy
