“We have already made the initial negotiations in Brussels, especially with the Commission’s technicians. Everything is aimed at a good negotiation of the next regime”, revealed Miguel Albuquerque.
The president of the Madeiran executive said this Friday that the negotiation of the Free Zone V regime has already begun and considered that the acquisition by the Regional Government of the entire Sociedade de Desenvolvimento da Madeira was the “most logical decision”.
“The decision we made at the time was the most logical decision and basically aimed at what just happened”said Miguel Albuquerque, referring to the fact that the European Commission announced, on Thursday, that it had closed the process against the Portuguese State in relation to the extension, in 2017, of the management of the Free Zone to the Madeira Development Company (SDM) by direct fit.
At that time, the operation was considered “wound of illegality” why not observe the rules for public service concessions, since SDM’s share capital was then mostly private.
The Regional Government (PSD/CDS-PP) therefore decided to proceed with the acquisition of the entire share capital of SDM, a situation that occurred in 2021, and which has now led to the filing of the process initiated by the European Commission against the State Portuguese.
Miguel Albuquerque, who was speaking on the sidelines of the inauguration of the Quinhentista de Machico Market, in the east of the island, added, on the other hand, that negotiations for the V regime of the Madeira International Business Center have already begun. (IBC), also known as Free Zone.
“We have already made the initial negotiations in Brussels, especially with the Commission’s technicians. Right now everything is heading towards a good negotiation of the next regime “he claimed.
The government official explained that one of the objectives of the executive is, through the tax benefits regime of the Free Zone, to bet on the attractiveness of technology companies and those linked to the energy transition sectors.
The Madeira International Business Center includes three investment areas —the Industrial Free Zone, the International Registry of Ships and International Services— and operates based on a special regime of tax benefits granted by the European Union, with the IV regime in force, which ended in 2020, but enters into force until 2027.
However, due to the Covid-19 pandemic, the European Commission authorized the granting of licenses to new companies until 2023under the General Regime of Exemptions by Categories (RGIC), but the Portuguese Government chose to apply the community measure year by year.
IBC has more than 2,400 registered companies, which are responsible for 82% of the region’s export volume, generate tax revenue of around 100 million euros and represent around 6,000 direct and indirect jobs.
Source: Observadora
