Compatibility of the nondiscrimination principle and Special Tax Zones - Interaction of Special Tax Zones with State aid law and the principle of non-discrimination
(2025) HARN60 20251Department of Business Law
- Abstract
- This thesis examines the legal conformity of Special Tax Zones (STZs) with the principle of non-discrimination under European Union (EU) law, especially when these zones are exempt from State aid rules. STZs are most of the time geographic tax regimes that provide advantages to companies according to their location or their needs in the context of regional development difficulties. Although frequently employed to facilitate regional growth, they raise concerns about competition, internal market cohesion, and equitable treatment of economic operators. The research seeks to address the following question: Do Special Tax Zones that are not subject to State aid comply with the concept of non-discrimination and the fundamental freedoms of the... (More)
- This thesis examines the legal conformity of Special Tax Zones (STZs) with the principle of non-discrimination under European Union (EU) law, especially when these zones are exempt from State aid rules. STZs are most of the time geographic tax regimes that provide advantages to companies according to their location or their needs in the context of regional development difficulties. Although frequently employed to facilitate regional growth, they raise concerns about competition, internal market cohesion, and equitable treatment of economic operators. The research seeks to address the following question: Do Special Tax Zones that are not subject to State aid comply with the concept of non-discrimination and the fundamental freedoms of the internal market? The thesis uses a doctrinal legal approach to analyze the typologies of STZs in EU Member States and their relationship with State support regulations, emphasizing the de minimis Regulation, intra-state autonomy, and general measures. This analysis reviews relevant decisions from the Court of Justice of the European Union (CJEU), including Azores, Gibraltar, and Madeira, to ascertain whether STZs may avoid State aid classification while complying to the principles of non-discrimination and freedom of establishment. The findings indicate that specific STZs, particularly those beneath the de minimis threshold or granted by autonomous infra-state bodies, may be exempt from the State aid framework. This exclusion does not ensure compliance to core EU law. Territorial selectivity, despite legal justification, may represent indirect discrimination or a disproportionate restriction on fundamental freedoms. The thesis asserts that STZs necessitate meticulous examination to prevent harm to the internal market, and that EU authorities need to enhance monitoring of these regimes, even in the lack of official State aid protocols. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9193589
- author
- Pouchet, Camille LU
- supervisor
- organization
- course
- HARN60 20251
- year
- 2025
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Special Tax Zones, State aid, Non-discrimination, Freedom of establishment, EU tax law, De minimis Regulation, Internal market, Territorial selectivity
- language
- English
- id
- 9193589
- date added to LUP
- 2025-06-05 13:10:21
- date last changed
- 2025-06-05 13:10:21
@misc{9193589,
abstract = {{This thesis examines the legal conformity of Special Tax Zones (STZs) with the principle of non-discrimination under European Union (EU) law, especially when these zones are exempt from State aid rules. STZs are most of the time geographic tax regimes that provide advantages to companies according to their location or their needs in the context of regional development difficulties. Although frequently employed to facilitate regional growth, they raise concerns about competition, internal market cohesion, and equitable treatment of economic operators. The research seeks to address the following question: Do Special Tax Zones that are not subject to State aid comply with the concept of non-discrimination and the fundamental freedoms of the internal market? The thesis uses a doctrinal legal approach to analyze the typologies of STZs in EU Member States and their relationship with State support regulations, emphasizing the de minimis Regulation, intra-state autonomy, and general measures. This analysis reviews relevant decisions from the Court of Justice of the European Union (CJEU), including Azores, Gibraltar, and Madeira, to ascertain whether STZs may avoid State aid classification while complying to the principles of non-discrimination and freedom of establishment. The findings indicate that specific STZs, particularly those beneath the de minimis threshold or granted by autonomous infra-state bodies, may be exempt from the State aid framework. This exclusion does not ensure compliance to core EU law. Territorial selectivity, despite legal justification, may represent indirect discrimination or a disproportionate restriction on fundamental freedoms. The thesis asserts that STZs necessitate meticulous examination to prevent harm to the internal market, and that EU authorities need to enhance monitoring of these regimes, even in the lack of official State aid protocols.}},
author = {{Pouchet, Camille}},
language = {{eng}},
note = {{Student Paper}},
title = {{Compatibility of the nondiscrimination principle and Special Tax Zones - Interaction of Special Tax Zones with State aid law and the principle of non-discrimination}},
year = {{2025}},
}