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Here you can access summary of the key current tax developments in Ireland, the UK and internationally as reported by Chartered Accountants Ireland

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Commission asks Greece to stop Taxation for Ships Flying Foreign Flags

The European Commission has officially asked Greece to amend its discriminatory taxation rules for foreign-flagged ships.

Under Greek tax rules, Greek-flagged ships and certain vessels managed from Greece are exempt from income tax and instead subject to a simplified and lower special tonnage tax for maritime activities. Foreign-flagged ships, on the other hand, are subject to the less favourable income tax regime. Additionally, Greek legislation allows an income tax exemption for dividends from entities using Greek-flagged ships, but not for dividend from companies using foreign-flagged ships.

The Commission considers that such rules are contrary to EU rules on the freedom of establishment, the freedom to provide services and the free movement of capital. The Commission’s request takes the form of a reasoned opinion. If Greece fails to comply within two months, the Commission may refer the matter to the European Court of Justice. See the Commission’s website for further information.