§ Sir David MitchellTo ask the Chancellor of the Exchequer if he will list the rates of corporation tax applicable to shipping companies in each country of the 835W European Union; and if he will make it his policy to bring United Kingdom rates into line with those elsewhere in the European Union. [33344]
§ Mr. JackThe UK continues to provide one of the lowest rates of corporation tax in the European Union. Current confined main national rates of corporation tax applicable to shipping companies in each European Union country are:
Table: Main national rates of corporation tax applicable to shipping companies in the European Union Country Rate (percentage) Notes Austria 34 — Belgium 39 Plus 3 per cent, surcharge, making an effective rate of 40.17 per cent. Denmark 34 — Finland 25 — France 33.33 — Germany 45 On undistributed profits (30 per cent, on distributed) plus 7.5 per cent, surcharge and local trade taxes (average 20 per cent., giving an average total effective rate of 58 per cent, on undistributed profits (46.25 per cent, on distributed). Greece Nil Profits from shipping are not subject to corporation tax. Instead a special tax, based on gross tonnage and age, is charged on usage of a vessel. Ireland 38 — Italy 37 Plus 16.2 per cent, local tax, making an effective rate of 53.2 per cent. Luxembourg 33 Plus 4 per cent, surcharge and local trade taxes (in range 8 per cent-12 per cent.), making an effective rate of 40.9 per cent. Netherlands 35 — Portugal 36 — Spain 35 Plus 1 per cent, surcharge, making an effective rate of 35.35 per cent. A special regime exists in the Canary Islands which broadly grants shipping companies a 35 per cent, reduction in corporation tax, giving an effective rate of 22.75 per cent. Sweden 28 — United Kingdom 33 —