The Commission approved a modification to an existing Finnish scheme in favour of passenger vessels…
The Commission approved a modification to an existing Finnish scheme in favour of passenger vessels. Ship-owners operating passenger vessels regularly calling at Finnish ports will be entitled to an income tax exemption and to a compensation for the various social contributions usually borne by maritime companies.
For this purpose the Finnish Foreign Merchant Shipping Registry Act will be amended to allow fiscal advantages for passenger vessels. The Commission approved this scheme in the context of its maritime policy which aims at preserving the employment of EU seafarers.
Under the Finnish Foreign Merchant Shipping Registry Act, passenger vessels operating between EU ports and regularly calling at Nordic ports have been from 2002 up to now eligible for specific state aids. Today’s decision approves further aid in favour of these passenger vessels for all seafarers who are nationals from the European Economic Area. The amendments concern an exemption for Finnish ship-owners from paying the income taxes of seafarers working on passenger vessels, as well as a compensation for all social contributions and charges borne by Finnish ship-owners.
These two measures will allow Finland to align itself with other Member States that have already adopted similar regimes. They will also prevent the out-flagging of Finnish vessels towards third countries. Preventing the trend of out-flagging from EU to non EU countries is a main objective of the Commission’s maritime policy, preserving maritime employment and shipping activities in the EU as well as improving safety.
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