§ Mr. LuffTo 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. DorrellCorporate 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:
99W
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.