Review article
https://doi.org/10.31141/zrpfs.2023.60.149.603
The impact of the COVID-19 state aid regime and current ECJ case law on the state aid in the European union
Šime Jozipović
orcid.org/0000-0002-8050-5134
; Ekonomski fakultet Sveučilišta u Splitu
Abstract
In this article, the role of state aid granted through tax incentives is analysed within the broader
context of state aid within the European Union during the Covid-19 pandemic. The paper presents
the structure of the state aid test in tax matters, as well as its peculiarities compared to the test for
direct subsidies and other state measures. Particularly for hidden tax incentives, there is a significant
risk that the European Commission might not timely recognize them within the complex tax system.
Therefore, tax measures are a frequent means through which member states grant unlawful state
aid. However, also in general member states often utilize the tax system to allocate permissible
state aid. In this context, the structure of aid during the pandemic differs from the usual state aid
structure. Despite the fact that member states had broad authority to use the tax system for granting
aid, there has been limited implementation of tax measures. This paper compares the types of
permissible subsidies within the temporary state aid framework and analyses potential reasons for
the constrained use of tax measures in allocating allowable state aid.
Keywords
state aid; tax aid; tax exemptions; Covid-19; temporary framework
Hrčak ID:
309504
URI
Publication date:
6.11.2023.
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