
Article 1 
The fiscal measures laid down in the Belgian programme act of 2 August 2002 in respect of which a formal investigation procedure has been initiated by Commission decision of 19 March 2003 constitute State aid within the meaning of Article 87(1) of the Treaty.
Article 2 
The introduction in the flat-rate taxation scheme for shipowners of a rate reduced to EUR 0,05 per 100 tonnes for the tranche above 40 000 tonnes is compatible with the common market, provided that the ships over 40 000 tonnes to which this reduced rate is applied are new or have been registered under the flag of a third country during the five years preceding their entry into the flat-rate taxation scheme.
Article 3 

1. Revenue accruing from the following activities is not eligible under the flat-rate taxation scheme for shipowners:
((a)) ancillary and temporary activities;
((b)) the sale of products not intended for consumption on board, such as luxury articles, and the provision of services not directly connected with maritime transport such as gambling, gaming tables and casinos and excursions for passengers;
((c)) revenue from short-term investment of operating capital if it does not correspond to income from the company’s ordinary cash resources accruing from eligible activities;
((d)) advertising and marketing if these do not correspond to the sale of advertising space on board eligible ships;
((e)) ship brokerage activities on behalf of ships of third parties;
((f)) disposal of operating assets if by their nature they are not intended for maritime transport.Their inclusion in the flat-rate taxation scheme for shipowners is incompatible with the common market.
2. Revenue accruing from the following activities is eligible under the flat-rate taxation scheme for shipowners:
((a)) revenue from short-term investment of operating capital if it corresponds to income from the company’s normal cash resources accruing from eligible activities;
((b)) advertising and marketing if these correspond to the sale of advertising space on board eligible ships;
((c)) ship brokerage activities on behalf of the company’s own ships;
((d)) disposal of operating assets if by their nature they are intended for maritime transport.Their inclusion in the flat-rate taxation scheme for shipowners is compatible with the common market provided that the conditions set out in this paragraph are complied with.
Article 4 
Deduction of losses of other divisions of a company liable for taxation that are not subject to the flat-rate tax from the tonnage-based flat-rate tax for ship owners is incompatible with the common market.
Article 5 
Reductions of tax rates of flat-rate taxation for shipowners in respect of ships less than 10 years old are incompatible with the common market.
Article 6 
Application of the scheme for the accelerated depreciation of ships to ships that by their nature are not intended for maritime transport is incompatible with the common market.
As appropriate measures, it is proposed that Belgium abolish the special option scheme applicable to the depreciation of ships not intended by their nature for maritime transport before 30 June 2005.
Before 31 December 2004 Belgium shall inform the Commission of its decision to adopt the said appropriate measures.
Article 7 
Reduction of or exemption from the payment of the registration duty on mortgages on ships which by their nature are not intended for maritime transport is incompatible with the common market.
Article 8 
The tonnage-based flat-rate taxation scheme for persons managing ships on behalf of third parties is compatible with the common market provided that the latter are simultaneously responsible for the management of crews and the technical management of ships, in accordance with the provisions of the Community guidelines in force on aid for maritime transport and provided that the tonnage-related rates are the same as those applicable to maritime transport companies.
Article 9 
Within two months of the notification of this decision, Belgium shall inform the Commission of the measures taken to ensure that the programme act of 2 August 2002 is in conformity with the present decision and, where appropriate, recover incompatible aid granted illegally under the said programme act. Interest shall be calculated in accordance with Commission Regulation (EC) No 794/2004, in particular Articles 9, 10 and 11 thereof.
Article 10 
This decision is addressed to the Kingdom of Belgium.
Done at Brussels, 30 June 2004.
For the Commission,
Loyola DE PALACIO
Vice-President