European Commission approves Maltese tonnage tax scheme

VALLETTA, Dec.19 (Xinhua) -- The European Commission has approved the Maltese tonnage tax scheme for another 10 years under EU state aide rules,announced Malta's Transport Minister Ian Borg on Tuesday.

The issue had been pending since October 2011, with the Commission in 2012 deciding to initiate a procedure over potential illegal aid measures applied in Malta in favour of shipping companies and their shareholders.

"The discussions have been difficult and technical, and they stretched out over a number of years, proportionately to the sensitivity of this sector and its importance to our country," said Borg, adding that the sector employed many people, both directly and indirectly.

The tonnage tax scheme comes with specifications on eligible vessels, specific types of income and activities of tonnage tax ships subject to tonnage tax and the tonnage tax scheme, including the extension of the tonnage tax to non-core shipping activities, the level of tonnage tax, the flag link requirement, and ring-fencing measures.

The decision means that the Malta tonnage scheme is now the first one approved by the European Commission. Enditem