Commission opens investigation into Polish tax incentive for shipyards

Further information:

The investigation follows concerns that this scheme would give some shipyards a selective advantage over competitors.

Background information:

In September 2016, Poland adopted a law giving shipyards operating in Poland an option to pay 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 started looking into the proposed tax incentive for shipyards after Poland notified the measure to the Commission in December 2016. 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 European Commission decided on 15 January 2018 to open an in-depth investigation into a Polish tax scheme for shipyards.