Brussels, 27th June 2007
Maritime transport: Commission authorises income tax and social insurance refund mechanism for Swedish shipping
The European Commission has today approved the modified reintroduction of a mechanism in Sweden to refund seafarer's income tax deducted at source as well as employers' social insurance contributions in respect of Swedish tax liable seafarers working on Swedish flagged vessels. The measure is expected to decrease flagging-out of the European maritime fleet, preserving employment and maritime know-how in the Community.
The Commission has examined the measure and has authorised it after checking its compliance with Community rules, notably:
The measure also covers an additional fee levied on paid wages (allmän löneavgift). The previously authorised scheme was approved by the Commission in 2001. The modified scheme will run from now until 17 January 2011 and is expected to cost up to SKK 1800 million (€ 200 million) a year.
 Citizens from the European Communities and the European Economic Area.
 State Aid No N 542/2001, 30.10.2001, SG(2001) D/292010.