EUROPEAN COMMISSION
Competition DG
Directorate F. Markets and cases V: Transport, Post and other services
Unit F3. State aid: Post and other services
Brussels, 7 December 2022
COMP/F3/ comp(2022)9457369
Kaupo Läänerand
Deputy Secretary General for Maritime
Hana-Maarja Helinurm
+372 639 7663
Email:
[email protected]
Subject: Response to your question: Ref: 14.11.2022 No 5-6/2022/6982-1
Dear Sir,
Thank you for your letter of 14 November 2022 relating to the Estonian seafarer scheme as
approved in case SA.53469 (2019/N).
In your 14 November email, you refer to recital 128 of Commission decision in case
SA.53469, where the Commission stated that “The 0% income taxation and the partial
reduction of social security contributions in respect of qualifying seafarers constitute
foregone State revenue and thus involve State resources. Moreover, since the measures are
implemented through national legislation, they are imputable to Estonia. The measures also
grant a selective advantage to the shipping companies hiring these seafarers as they benefit
from lower labour costs in comparison to companies not benefiting from the scheme (e.g.
because not at least 60% of the net tonnage of their fleet flies the flag of a Member State of
the EU/EEA) which would be otherwise comparable”.
As you rightly point out, in the above-mentioned decision the Commission concluded that the
0% income tax and the partial reduction of social security contributions of seafarers
constituted State aid in the sense of Article 107(1) TFEU. That conclusion was based on the
notification submitted by the Estonian authorities in the context of that case.
Against this background, in your 14 November letter you add, at page 2, that “We are on the
position that no matter if the Seafarer Scheme benefits are applied by the qualified Estonian
employer or if the 0% income tax rate for the salary received from the qualified employer was
applied by seafarers submitting their income tax return, the Estonian employer gets a
selective advantage, and therefore in both cases such tax incentives constitute State aid.”.
We in principle agree with this statement, since even whereby seafarers benefit from labour-
cost reductions this situation is likely to result in indirect benefits for their employers.
Commission européenne, B-1049 Bruxelles / Europese Commissie, B-1049 Brussel - Belgium. Telephone: (32-2) 299 11 11.
Email address:
[email protected]
Nevertheless, further below in the same page of your 14 November letter you add that “We
are on the position that even if by hiring Estonian seafarers foreign shipping companies
indirectly benefit from lower labour costs, such distant benefit cannot be regarded as State
aid provided by Estonia”.
This statement appears in contradiction with the previous statement, where you seem to
express that you consider that State aid is present even when the measure targets directly the
seafarers and indirectly the ship-owners.
For the sake of clarity, we would like to note that the Commission has consistently held in its
decisional practice that aid measures directly targeting seafarers may still entail State aid
pursuant to Article 107(1) TFEU if they result in an indirect advantage to the ship-owners
employing them. This is because those ship-owners may be able to reduce some of their
labour costs or to adapt the seafarers’ wages depending on the level of those cost reductions,
or because they may take the seafarers’ labour cost reductions into account when establishing
their wages.
We trust that our explanations respond to your doubts.
Yours faithfully,
[e-signed]
Eduardo Martinez Rivero
Head of Unit
2
Saatja: "stateaid.esteu" <
[email protected]>
Saaja:
[email protected]
Teema: SA.53469 - Request for opinion regarding the Estonian Seafarer Scheme
Kuupäev: 2022-11-15 12:56
Dear Madam/Sir,
Please find attached a letter of the Ministry of Economic Affairs and
Communications on SA.53469(2019/N) State aid in favour of maritime
transport. The letter is available in digitally signed container and also in
.pdf format.
Kind regards
Maria Peterson (financial services attaché)
Saatja: "Katerin Peärnberg"
Saaja: "MKM info"
Teema: FW: Kiri Euroopa Komisjonile: Request for opinion regarding the Estonian Seafarer Scheme
Kuupäev: 2023-03-30 06:37
Tere!
Palun registreerida ja siduda vastuskiri koos failidega siia:
https://delta.mkm.ee/dhs/n/document/22c33923-8acd-4cea-80a7-a46d1716b904
Request for opinion regarding the Estonian Seafarer Scheme
Tervitades
Katerin Peärnberg
MMO
From: Maris Kalda <
[email protected]>
Sent: Wednesday, March 29, 2023 4:39 PM
To: Katerin Peärnberg <
[email protected]>
Cc: Ljudmilla Sokolnikova <
[email protected]>; RAM Riigiabi
list <
[email protected]>
Subject: RE: Kiri Euroopa Komisjonile: Request for opinion regarding the
Estonian Seafarer Scheme
Tere
Jah, MKMi kiri saadeti komisjonile eesti esinduse kaudu (vt vastav e-mail
lisatud).
Küsisime komisjonilt vastuse kohta ja tuli välja, et vastus saadeti juba
7.12.22, aga see läks (vist) ainult Hana-Maarjale e-mailiaadressile.
Igal juhul palusime vastuse ka meile saata ja vastus on nüüd ka lisas.
Tervitades
Maris Kalda
RM
611 3525