Challenge Filed to EU Minimum Tax Shipping Income Provision (1)

The EU’s lower court will be asked to rule in a challenge to provisions in the bloc’s implementation of the global minimum tax that exempt some international shipping income from effective tax rate calculations.

A provision allowing the exemption only for companies that manage shipping activities from their home jurisdictions “infringes the general principle of equal treatment of comparable enterprises,” according to the case filing, published in the EU Official Journal on Monday.

The application of the rule to “purely domestic situations infringes the principle of proportionality,” the filing said.

The EU directive ((EU) 2022/2523) implementing the ...