Rotterdam and other ports plan to challenge a European Union decision requiring seaports to pay a corporation tax beginning in 2017 on the basis that the ruling does not treat EU ports, especially those that receive government aid, equally.
Several Dutch port authorities said they plan to appeal a European Commission decision to require them to pay corporation tax beginning in 2017.
“We are not against paying corporation tax, but then it should apply to all European sea ports. This is a matter of principle for us,” Paul Smits, financial director of the Port of Rotterdam Authority, said in a statement. “The foreign ports with which we have to compete do not pay corporation tax and, in addition, are even supported in various ways by their governments. Within Europe, it should be a question of ‘what’s sauce for the goose is sauce for the gander.’
“The payment of corporation tax will come at the expense of our investments in the port complex,” he added. “The purpose of this cannot be to increase unfair competition.”
Joining the appeal are the Amsterdam Port Authority, Groningen Seaports, the Moederdijk Port Authority, the Port of Den Helder and Zeeland Seaports.
Last year, the Dutch legislature exempted port authorities from paying corporation taxes because they do not compete with private parties, but with foreign ports and with each other. Dutch officials claim the exemption is fair because foreign ports, such as Hamburg, Germany, and Antwerp, Belgium, receive government support to cover losses or co-fund port infrastructure. In January, the European Commission overturned the Dutch legislation giving special treatment to ports.
The port authorities said their legal position will be that the EU is not treating all ports equally when it comes to subsidies.
The Port of Rotterdam Authority said would have to pay about 60 million euros ($67.6 million) in corporation tax per year. The amount is in addition to the dividend it pays to the city of Rotterdam and to the state government. The dividend amounts to about 90 million euros and is indexed annually. It is not dependent on the profits made.
In addition, the Port of Rotterdam Authority also contributes regularly to the costs of public, national infrastructure in Rotterdam. For example, earlier this month the Port Authority announced that it will be contributing nearly one hundred million euros to the re-routing of four kilometers of public railway line.
The port authority, which is owned by the city of Rotterdam and the Dutch government, has also appealed to the European Commission that it should not be required to make those infrastructure contributions because governments in other EU countries normally take responsibility for such projects, thus creating an uneven playing field among ports.
Correction: A previous version of this story mentioned Antwerp as one of the ports affected by the corporation tax.
Dutch ports appeal ‘unfair’ EU subsidies
