State aid case SA.48929 | Tonnage Tax and Seafarer Scheme in Portugal

Further information:

The Commission considered that such schemes would encourage ship registration in Europe and contribute to the competitiveness of maritime transport while preserving employment in the sector and promoting high environmental standards.

Background information:

Under this tonnage tax scheme, maritime transport companies pay taxes on the basis of the net tonnage (i.e. the size of the shipping fleet) operated in maritime transport activities rather than on the basis of their taxable profits. In addition, for certain more environmentally-friendly ships, companies can achieve an additional reduction of 10% to 20% of the tax base under the tonnage tax scheme.

The tonnage tax scheme requires that if a shipping company wants to benefit from the scheme, a significant part of its fleet must fly the flag of a European Economic Area (EEA) state. Moreover, the newly introduced Portuguese seafarer scheme exempts seafarers employed on vessels that are eligible under the tonnage tax scheme from paying personal income tax. It also allows them to pay reduced rates of contribution for social insurance.

The European Commission approved on 6 April 2018 under EU State aid rules a Portuguese tonnage tax scheme and a scheme aimed at supporting seafarers.

European Commission: Press Release, 06.04.18: Commission approves Portuguese tonnage tax and seafarer scheme http://europa.eu/rapid/press-release_IP-18-2842_en.htm

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