EC APPROVES FRENCH TONNAGE TAX REGIME

EC APPROVES FRENCH TONNAGE TAX REGIME    The European Commission has approved the tonnage tax regime adopted by the French government.
   The tonnage tax, now common in Europe, allows shipowners to pay a flat rate of tax rather than taxes calculated on their profits.
   France plans to implement its new tonnage tax from 2003 to 2004 for the maritime transport sector.
   The EC said the flat-rate taxation scheme applicable to maritime transport companies is in accordance with the European guidelines for aid to maritime transport.
   “All the tax measures approved by the commission will help to increase the competitiveness of the French fleet in the face of competition from third countries,” the EC said.
   France will become the 10th European Union country with a tonnage tax regime. The others are Greece, the Netherlands, Denmark, the United Kingdom, Germany, Spain, Finland, Ireland and Belgium.