HC Deb 06 July 1993 vol 228 cc98-9W
Mr. Luff

To ask the Chancellor of the Exchequer if he will list the corporate tax rates and systems of the members of the European Community as they apply specifically to the shipping industry.

Mr. Dorrell

Corporate tax systems operating in European Community member states are complex and diverse, and comparisons are notoriously difficult. Lists of all the numerous tax provisions applying to shipping industries in each country are not readily available. Information available on national corporate tax rates on profits of shipping companies in EC countries is as follows:

Tax rates1 (Per cent.)
Belgium 39
Denmark 534
France 33⅓
Germany 236
Greece 30
Tax rates1 (Per cent.)
Ireland 410
Italy 36
Luxembourg 533
Netherlands 535
Portugal 36
Spain 35
United Kingdom mainstream rate 33
United Kingdom small company rate 25
1 Companies may also be subject to local income or profits taxes (eg 16.2 per cent. in Italy and averages of 20 per cent. in Germany and 10 per cent. in Luxembourg).
2 Undistributed profits taxed at 50 per cent.
3 Ships subject to annual tonnage tax.
4 Rate applicable to "qualifying shipping activities"; non-qualifying activities taxed at 40 per cent.
5 Denotes classical system—profits taxed once in hands of company and again in hands of shareholder.