Onderzoek geopend naar ongeoorloofde staatssteun door belastingkortingen in Sicilië (en)

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The European Commission has decided to launch an in-depth investigation into two fiscal incentives adopted by Sicily in a regional law (29/12/2003 n. 21). The scheme provides for a 5-year exemption from the Italian tax on regional production activities (IRAP) in favour of companies from certain sectors with their registered office, place of effective management and production activities in Sicily. The law also creates a Euro-Mediterranean Financial Centre from where subsidiaries of finance and insurance companies could do business with other Mediterranean countries subscribing to the November 1995 Barcelona Declaration. These companies benefit from, inter alia, a 50% reduction on IRAP and an exemption from corporate tax. The Commission's investigation aims to establish whether these fiscal advantages, which are not available to other comparable companies, are liable to distort competition.

Competition Commissioner Neelie Kroes i said "The schemes seem to provide distortive aid to certain Sicilian companies in a way which does not really seem to promote growth. Moreover, the project for a Financial Centre seems to be very similar to an earlier project for a Financial Centre in Trieste, which the Commission prohibited in 2003".

The measure contains two schemes: Articles 14 and 15 afford an exemption from IRAP to certain undertakings and Article 16 creates the Euro-Mediterranean Financial Centre.

The first scheme offers a 5-year exemption from IRAP for certain new firms created from 2004 onwards and for certain existing undertakings. More precisely, a five year exemption from IRAP is provided to:

(i) new firms who from the year 2004 started operating in tourism, hotel, cultural goods, agro-feeding, informatics and telecommunications sectors and

(ii) all new firms starting their activities in an industrial sector from the year 2004 and having a turnover smaller than 10 million euros.

In addition, as from 2004, a five year exemption is provided on the part of IRAP which is due on the share of the tax base that exceeds the average tax base of the years 2001-2003 for all existing firms, except those firms operating in the chemical and petrochemical sectors.

The second scheme creates the Euro-Mediterranean Centre of Finance and Insurance Services, which consists of subsidiaries of finance and insurance companies which collect funds on the international markets to be used exclusively out of Italy and with non Italian residents. Benefits are provided only for business with non-EU countries subscribing to the Barcelona Declaration of 27-28 November 1995. The benefits afforded to these companies are:

(i) 50% reduction on the rate of IRAP for activities made within the Centre

(ii) exemption from duties on regional concessions

(iii) paying a fixed fee instead of the registration duty, the mortgage tax and rates; and

(iv) exemption from Italian corporate tax on revenues produced in Sicily.

At this stage, the Commission's preliminary assessment considers both measures as a form of operating aid which exonerates the beneficiaries from costs which all its competitors must bear. This kind of aid is normally prohibited by the Commission.