1 / 24

The Belgian Shipping Policy

2. Background. Since the 1980's, the shipping industry in Europe isunder acute threat by :* Over-regulation, as this industry is poorly known. Overreactions by government decision-makers to accidents and the pressure of an ill-informed public opinion contribute in no small way to this

chip
Download Presentation

The Belgian Shipping Policy

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

    1. A.C.C.– Antwerpen- 25 november 2010 The Belgian Shipping Policy Peter Verstuyft Managing Director Royal Belgian Shipowners’ Association http:// www.brv.be Tel: +32/3 232.72.32 E-mail: info@brv.be

    2. 2 Background Since the 1980’s, the shipping industry in Europe is under acute threat by : * Over-regulation, as this industry is poorly known. Overreactions by government decision-makers to accidents and the pressure of an ill-informed public opinion contribute in no small way to this state of affairs. * The implications of European regulations on wages and social security. * A prohibitive tax-environment

    3. 3 Result : Flagging out

    4. 4

    5. 5 Strategic conclusions for Europe European shipowners control about 41% of the world fleet. If the EU succeeds in bringing back all those vessels under European flags, Europe would become the world’s number one maritime block. Enabling the EU to largely determine international maritime policy. Preserving employment on board / on shore Preserving know-how and development of maritime skills Enhancing safety

    6. 6 “Orientations on State Aid” 1997 De notie criterion of measurable benefit past in het kader van het rapport van de Europses Commissie van het jaar 1997: “State Aid Guidelines for shipping”. Dit rapport van de Europsese Commissie bouwt verder op de filosofie achter het Nederlandse zeevaartbeleid ontwikkeld door Policy Research. De notie criterion of measurable benefit past in het kader van het rapport van de Europses Commissie van het jaar 1997: “State Aid Guidelines for shipping”. Dit rapport van de Europsese Commissie bouwt verder op de filosofie achter het Nederlandse zeevaartbeleid ontwikkeld door Policy Research.

    7. 7 Maximum State Aids allowed in Europe : Zero-rated social charges (i.e. exemption) for employers and employees Zero-rated withholding tax on occupational income (i.e. exemption)

    8. 8 Maximum admissible State Aid in the EU: Zero-rated (i.e. exemption from) corporate tax EU State Aid Guidelines 1997

    9. 9

    10. 10 The importance of a suitable shipping policy for government Preserving and attracting economic activity and employment Ensuring shipping safety by dealing with ‘substandard shipping’ Keeping control and developing a positive image for Belgium Strategic & technological importance Shipping as a springboard for shipping-related industries

    11. 11 Importance of a suitable shipping policy to shipowners A bona fide national register is commercially quantifiable Constant input of highly qualified personnel Preserving maritime know-how Avoiding non transparant tax structures

    12. Strategic achievements 12

    13. 13 Corporate tax: a two-sided approach The corporate tax for ocean-going shipping is subject to a two-sided approach: - Tonnage tax (lump-sum profit determination based on tonnage) - Conventional tax, i.e. Accelerated depreciation Exemption from tax on capital gains conditional upon reinvestment Investment deduction amounting to 30% of the purchase price

    14. Strategic achievements

    15. Strategic achievements Purpose: avoiding brass plate companies Law: Art 115§2.2°: “that is managed to a considerable extent in Belgium” Elucidation of the Law: management as in art 115§2.2° refers to the main responsibility for the activities, among others, non-exhaustively listed below: making agreements relating to the ship taking care of the ship’s supplies taking care of the ship’s maintenance entering into insurance contracts doing the bookkeeping meeting administrative formalities appointing Masters “considerable extent” refers tot the fact that the taxpayer carries out most activities or that he has them carried out The RBSA has developed a self assesment matrix around 3 aspects of management (strategic & commercial, technical and crewing) with 36 items For belgian registered & flagged vessels: majority of 2 of the 3 aspects + majority of the 36 items For non-Belgian registered vessels: majority of all 3 aspects + majority of the 36 items Caveat: matrix serves as a guide only and the final decision lies with the IRS. When in doubt the Owner can always apply for a “ruling”.

    16. Strategic achievements

    17. Did it work ? 2009 – ranking UNCTAD 17

    18. 18

    19. Evolution of the student population at the Maritime Academy 19

    20. Total Economic Impact Shipping cluster: development of total added value 2001-2007

    21. The New Belgian Shipping Policy Development of the merchant fleet controlled from Belgium

    22. Royal Belgian Shipowners’ Association 22

    23. 23 Impact of Belgium’s new shipping policy Maintenance of decision-making power in Belgium The new policy has generated a new drive The risk of key players leaving Belgium has been reduced to a minimum for the next few years (almost comprehensive re-flagging as well as new players) A fleet under the Belgian flag The tonnage tax has brought security and significant re-flagging / flagging-in The flag has become competitive within Europe (with Denmark, Germany, the Netherlands and the UK) Training has received a new impetus (with the largest body of students in 25 years at the maritime academy); enrolment has grown by 50% since 2001 Economic impact Employment (total/preservation in Belgium) Added value doubled in 5 years time

    24. 24 Belgium is not Europe’s Liberia Aim: Structural growth of the Belgian merchant marine Developing new shipping activities Rationale: Creating (direct & indirect) added value as well as (direct & indirect) jobs

More Related