2003/755/EC: Commission Decision of 17 February 2003 on the aid scheme implemented by Belgium for coordination centres established in Belgium (Text with EEA relevance.) (notified under document number C(2003) 564)

Article 1

The tax scheme which currently operates in Belgium for the benefit of coordination centres approved under Royal Decree No 187 constitutes aid incompatible with the common market.

Belgium is required to withdraw the aid referred to in Article 1 or to amend it in such a way as to make it compatible with the common market. As of the date of notification of this Decision, the benefits of this scheme or sections thereof may no longer be granted to new beneficiaries or maintained by renewing existing agreements. With regard to centres approved before 31 December 2000, the scheme may be maintained until the expiry date of the individual approval applying on the date of notification of this Decision and until 31 December 2010 at the latest. In accordance with the second paragraph, if approval is renewed prior to that date the benefits of the scheme dealt with in this Decision may no longer be granted, even temporarily.

Article 3

Belgium shall inform the Commission within two months of the date of publication of this Decision of the measures taken to comply with it.

Article 4

This Decision is addressed to the Kingdom of Belgium. Done at Brussels, 17 February 2003. For the Commission Mario Monti Member of the Commission (1) OJ C 147, 20.6.2002, p. 2. (2) OJ C 2, 6.1.1998, p. 2. (3) OJ C 384, 10.12.1998, p. 3. (4) See footnote 1. (5) OJ L 83, 27.3.1999, p. 1. (6) Letter SG(2001) D/289723. (7) See footnote 1. (8) Request of 27 March 2002 (A/32428). (9) The scheme notified is registered under number N351/2002. (10) Letter COMP D/53779 of 18 July 2002. (11) See footnote 1. (12) Letters COMP D/55338 and D/56352. (13) Law of 27 December 1984, Law of 4 August 1986, Royal Decree of 3 November 1986, Law of 28 December 1990, Law of 23 October 1991 and Law of 4 April 1995. (14) Multinational character is determined on the basis of the following criteria: establishment (subsidiaries in at least four countries), turnover achieved abroad and capital invested abroad. The requirement that the multinational group must pursue activities in at least four countries was introduced by the Law of 4 August 1986. (15) Advertising, supplying and collecting information, insurance and reinsurance, scientific research, contacts with national and international authorities, centralisation of activities in the area of accounts, administration and data processing, centralisation of financial transactions and hedging of risks associated with exchange rate fluctuations, as well as all ancillary or preparatory work for the companies in the group. (16) See recital (8). (17) Proposal for appropriate measures. (18) OJ L 249, 3.10.1969, p. 25. (19) Article 105(3) of RD/ITC92 refers to "professional investors" and three other categories of taxpayers that are eligible for exemption from withholding tax, i.e. "financial institutions", "semi-public organisations in the field of social security" and "non-resident savers". (20) See No 26/48 of the Commentaar van het Wetboek van de Inkomstenbelastingen 1992 (commentary on the Income Tax Code) (Com.ITC). (21) See recital (21). (22) Joined cases C-15/98, Italian Republic v Commission and C-105/99 Sardegna Lines v Commission [2000] ECR I-8855. (23) Tax on the income of resident natural persons, resident legal persons, domestic companies and non-residents (subdivided according to whether the taxpayer is a natural person or a company). (24) OJ L 225, 20.8.1990, p. 6. (25) OJ C 123, 22.4.1998, p. 9. (26) Answer given on 12 July 1990 to Written Question No 1735/90 from Mr G. de Vries to the Commission (OJ C 63, 11.3.1991, p. 37). (27) Case 73/74 Papiers peints v Commission [1975] ECR 1491, paragraph 31. (28) Case 14/81 Alpha Steel v Commission [1982] ECR 749. (29) Case 169/80 Gondrand v Commission [1981] ECR 1931, paragraph 17. (30) Case T-115/94 Opel Austria v Council [1997] ECR II-39, paragraph 124. (31) Joined cases T-227/99 and T-134/00 Kvaerner Warnow Werft v Commission [2002] ECR II-1205. (32) Case C-47/91 Italy v Commission [1994] ECR I-4635, paragraph 24. (33) Banks, leasing companies, etc. (34) Costs of computer network, software, financial circuits, etc. (35) Notably Cases C-248/89 and C-365/89 Cargill v Commission [1991] ECR I-2987 and I-2045, and Case C-90/95 P de Compte v Parliament [1997] ECR I-1999. (36) Letter D/53864 from the Commission, launching the phase of cooperation with Belgium. (37) This means built or unbuilt immovable property, including material and equipment which are immovable owing to their intrinsic nature or the use to which they are put. (38) N226/2000 - Regional aid scheme under the law of 30 December 1970. (39) See Articles 115 ff. of the Code on Registration, Mortgages and Court Fees. (40) The Belgian state, social insurance institutions, financial institutions (banks, insurance companies, etc), investment funds and companies, the stock exchange. (41) Case 730/79 Philip Morris v Commission [1980] ECR I-2671. (42) See footnote 22. (43) OJ C 74, 10.3.1998, p. 9. (44) OJ C 334, 12.12.1995, p. 4. (45) See footnote 26.

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Article 4

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