CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. EU Approves Tax Breaks For French Regions

EU Approves Tax Breaks For French Regions

by Ulrika Lomas, Tax-News.com, Brussels

16 March 2017


The European Commission has approved proposals for reductions to France's octroi de mer tax, which is levied on goods imported to France's outermost regions and locally produced goods.

The proposed scheme provides for reductions of the tax for a specific list of products produced locally in the regions.

The Commission considers the scheme promotes the development of the outermost regions of Guadeloupe, Guyane, Martinique, Mayotte, and La Réunion without unduly distorting competition in the Single Market.

More than 800 products will benefit from the reduced tax.

The Commission explained that France has quantified the additional costs incurred by the companies in these regions for each product. The Commission concluded that the aid granted will not exceed what is necessary in order to compensate for those additional costs, and that it is proportionate, in line with EU rules.

All outermost regions, including the French ones, have been granted special regional aid status in the Treaty on the Functioning of the European Union. Under the regional aid guidelines, operating aid can be authorized to compensate for additional costs attributable to one or several of the permanent structural disadvantages faced by these regions and cited in the Treaty.

The scheme will remain in force until the end of 2020. The French authorities will carry out an evaluation of its effectiveness by the end of 2017.

Competition Commissioner Margrethe Vestager said: "The French outermost regions are located several thousands of kilometres from the home market in mainland Europe. As a result, companies producing local products in these outermost regions face significant additional costs. The aid provided under the octroi de mer scheme will contribute to regional development in line with EU rules."

TAGS: tax | European Commission | tax incentives | Guadeloupe | tax rates | France | Martinique | Mayotte | tax breaks | European Union (EU) | Europe

To see today's news, click here.

Leave a comment

Read our Posting Guidelines

 






Close

Password Reminder

Please enter your email address to receive a password reminder.

 






Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Tax-News+ Updates

Receive FREE daily updates from Tax-News.com, straight to your inbox. Register Now!

For a tailored solution, choose to receive selected news updates for your preferred jurisdictions and topics, with our enhanced Tax-News+ subscriber service. Read more...

 

Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »