It was asked by the European Commission to end the Greek discriminatory taxation of foreign-flagged ships and amend legislation on duty-free service stations.
Greek-flagged ships and certain vessels managed from Greece are exempt from income tax as per Greek tax rules. Instead they impose a lower and simplified tonnage tax for maritime activities. Ships flying foreign flags are subject to the less favorable income tax regime. Greece also provides an income tax exemption for dividends from entities using Greek-flagged ships, but not for dividends from companies using foreign-flagged ships.
These provisions are contrary to European Union rules on the freedom of establishment, the freedom to provide services, and the free movement of capital as said by the EU Commission. These requests must to be implemented within two months. The Commission may refer the cases to the European Court of Justice if it fails to do so.
