Brussels, 9 December 2022
The European Commission has approved, under EU State aid rules, the prolongation of a Swedish scheme to refund taxes and social security contributions of employers of certain seafarers.
The scheme is aimed at increasing the competitiveness of Swedish shipping companies operating internationally and stimulating the employment of seafarers who are liable to taxes and social security contributions in Sweden. The measure was originally approved by the Commission in February 2000 (N 819/99), prolonged in 2001 (SA.16069), 2007 (SA.21952), 2008 (SA.26478), 2012 (SA.33609) and 2019 (SA.46740), and is set to expire on 31 December 2022. Sweden notified the Commission of its intention to prolong the scheme until 31 December 2025, with a budget of approximately €452 million (SEK 4,950 million) for that period.
Under the scheme, the aid will take the form of a reimbursement to the employers of the tax levied on seafarers’ income, as well as on social security contributions and general fees imposed on their wages. In order for the employers to be eligible, the seafarers need to be either a citizen of the European Economic Area, or be liable for taxation and/or social security contributions in an EU Member State.
The Commission assessed the scheme under the EU State aid rules, and in particular under Article 107(3)(c) of the Treaty on the Functioning of the European Union and the Guidelines on State aid to maritime transport. The Commission found that the scheme continues to be necessary and appropriate to promote the attractiveness of the employment of seafarers in Sweden and enhancing the competitiveness of Swedish ship operators. Furthermore, the Commission concluded that the measure continues to be proportionate, as it is limited to the minimum necessary, and to have a limited impact on competition and trade between Member States. On this basis, the Commission found that the prolongation of the scheme is in line EU State aid rules.
The non-confidential version of the decision will be made available under case number SA.104878 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.
Source – EU Commission