ARCHIVES HISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(77)169
Vol.1977/0071

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COMMISSION OFTHEEUROPEAN COMMUNITI
COM(77)169 final
Brussels,23May1977
Proposal fora
COUNCIL REGULATION (EEC)
ontheapplication ofDécision ofthe
ACP-EECCouncilofMinisters ,onthearrangements
applicable tothestaffoftheCentreforIndustri­
alDevelopment asregardstaxation ,socialsecurity
andjurisdiction
(submittedtotheCouncilbytheCommission )
COM(77)169final

>EXPLANATION
AttheFijimeeting on13thand14thApril1977»theACP-EEC
CouncilofMinisters setupundertheACP-EECConvention ofLomeagreed
onadecision relating tothestaffregulations forthepersonnel of
theIndustrial Development Centre(IDC)(established underthearticle
36oftheConvention )concerning fiscal,socialandjurisdictional matters .
Itisnownecessary inaccordance witharticle74§3ofthe
Convention forthisdecision to"beappliedthroughout theCommunity .
Thisisthereasonfortheproposed regulation whichisattached .

PROPOSAL FORACOUNCILREGULATION (EEC)
ONTHEAPPLICATION OFDECISION OFTHEACP-EECCOUNCIL OFMINISTERS
ONTHEARRANGEMENTS APPLICABLE TOTHESTAFFOFTHECENTREFOR
INDUSTRIAL DEVELOPMENT ASREGARDSTAXATION,SOCIALSECURITY ANDJURISDICTION
THECOUNCILOFTHEEUROPEAN COMMUNITIES,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity
andinparticularArticle235thereof;
HavingregardtotheproposalfromtheCommission;
1)HavingregardtotheopinionoftheEuropeanParliament ;
Whereasindustrial cooperation withtheACPStatesislikelytocontri­
butetotheattainment ofCommunityobjectivesinparticular bycontributing
totheharmonious development ofworldtradeandbystrenghthening thesoli­
daritywhichbindsEuropeandtheoverseascountries;
Whereas,therefore,provisions concerningindustrial cooperation,inclu­
dingthesettingupofaCentreforIndustrial Development,arecontainedin
2).,_ththeACP-EECConventionofLome,signedon28February1975,andherein­
afterreferredtoastheConvention ;
Whereasstepsshouldbetakentoensuretheproperfunctioning ofthe
CentreforIndustrial Development ;
WhereastheACP-EECCouncilofMinisters,providedforbytheConvention,
hasadopted,onthebasisofArticle36oftheConvention,Decisionn°
of..onthearrangements applicabletothestaffoftheCentrefor
Industrial Development asregardstaxation,socialsecurity,andjurisdic-,
tion;
Whereasitisnecessary,inconformitywithArticle74paragraph 3of
theConvention,totakethemeasuresrequiredtoimplementthisDecision
withintheCommunity;
■•••/•••■
1)
1O.J.nP
2)O.J.n°L25,30.1.1976,p.2.

WhereastheTreatydoesnotprovidethenecessary powersft."
purpose ;
HASADOPTED THISREGULATION :
Article 1
Decision n° 77oftheACP-EECCouncilofMinisters ,,annexed
tothisRegulation ,shallapplywithintheCommunity .
Artiele2
ThisRegulation shallenterintoforceonthedayfollowing ii.spubli­
cationintheOfficial JournaloftheEuropean Communities .
ThisRegulation shallbebindinginitsentirety anddirectly applicable
inallMemberStates.
Doneat
FORTHECOUNCIL,
ThePresident .

DECISION NO /77OFTHEACP-EEC COUNCIL OFMINISTERS
onthearrangements applicable tothestaff
ofthe Centre for Industrial Development
asregards taxation ,social security andjurisdiction
THE ACP-EEC Council ofMinisters
Having regard totheLome Convention ,andinparticular Article 36
thereof ,
ACP-C2E /15e/77•«•/•••

,whereas stepa should betaken toensure theproper functi' \ngofthe
Centre forIndustrial Development ,andtodetermine theconditions
under which Protocol No5to .the Lorsd Convention ,onprivilege -;a
andimmunities ,canbe -applied tocertain ,staff ofthat Centre ;
Whereas byitsDecision No -2/76of14-July 1975 theACP-EEC Council
ofMinisters laid down theStatutes and .rules ofoperation ofthe •
Centre forIndustrial Development andgave the Coxnuit fcaeonIndustrial
Co-operation amandate toadopt theconditions ofemployment ofthe
staff ;whereas those conditions ofemployment wera adopted bythe
said Committee on
Whereas rasprovided forinthesaid Protocol No5t staff of
the Centre forIndustrial Development shall enjoy thecustomary
privileges ,immunities andfacilities intheterritory ofthe
Member States andoftheACP States ,inparticular ,whilst carrying
outtheir duties ?whereas these privileges ,immunities and
facilities must betreated ascomparable tothose ofsimilar
institutions operating tinder like conditions .
HAS DECIDED ASFOLLOWS :
Article 1
TheDirector ,theDeputy Director and the staff ofthe Centre for
Industrial Development and ,tothe extent necessary ,members oftheir
families ,shall ,asregards social security schemes ,besubject to
the law oftheState inwhose territory the Centre has itsheadquarters ,
unless they opt for the application ofthe law ofthe State towhose
law they were last subject orthe law ofthe State ofwhich they are
nationals .However ,this right ofoption may beexercised once only and
must heexercised within the sixmonths following the date of •ntment
itshall take effect onthe date ofentry into service .
ACP-CEE /45e/77

-3-
Article 2
1.TheDirector ,theDeputyDirector andthestaffoftheCentre
forIndustrial Development shallbeliabletoataxforthebenefit
oftheCentreonsalaries ,wagesandemoluments paidbythe
Centre.
Theconditions andprocedures forapplying thistaxarelaid
downintheAnnex.TheCommittee onIndustrial Co-operation
shallbeempowered toamendthatAnnexifnecessary .
2.Taxshallbecollected bytheCentrebymeansofdeduction at
source.Theproceeds ofthetaxshallbeentered asrevenue
inthebudgetoftheCentre.
3.Thepersonareferredtoinparagrpah 1shallbeexemptfrom
national taxesonsalaries ,wagesandemoluments paidbytheCentre.
Article 3
1.Inth<=»eventofadisputebetweentheDirecto ,theDepi^v
Director orthestaffoftheCentreontheonehandandtheCentre
ontheother,thedisputeshallbebroughttotheattention ofthe
Committee ,which,withaviewtoseekingasolution ,shallexamineitinaccordance withthearrangements andprocedures whichitshall
laydown.
ACP-CEE/45e/7700©/o99

2*Ifth.6Coiuixntt;6©is ."U3&at>j-e ,tor&aciia-solutionacceptable to
thepartiestothedisputewithintwomonths .ofitsnotification
eitherpartymayinitio .t.earbitration ^proceedings ,Tothisend
onepartyshallinformtheotherofthenomination ofanarbitrator®
Theotherpartyshallthenfeerequired tonominate asecond
arbitrator withinonemonth,*Thetwoarbitrators shallchoosea
thirdarbitrator ,
3.Thedecisions taken :bythearbitration body .shallbebinding
ontheparties and.,totheextentnecessary ,,shallberendered
enforceable fortherelevant authorities ;oftheMemberStatesof
theCommunity oroftheACP .State® ,.-andforttheinstitutions and
bodiessetupunderthe.Convention ,,
4.Thedisputesreferred toin.paragraph 1maynotbesubject
toanyothermethodofsettlement .
Article 4
TheACPStates,theMemberStatesandtheCommunity shalleach
takethemeasures necessary toimplement thisDecision ,
Doneat
FortheCouncilofMinisters ,.
ThePresident
ACP-CEE/45e/77

ANNEX T
Conditions andprocedure forapplying thetaxforthebenefit
oftheCentreforIndustrial Development
1.TheDirector ,theDeputyDirector andthegtaffoftheCentre,
excluding localstaff,shallbeliabletothetaxforthebenefit
oftheCentrereferred toinArticle 2oftheDecision ,,
Thetaxshallbepayableeachmonthonsalaries and
emoluments ofanykindpaidbytheCentretoeachpersonliable.
However,moniesandallowances ,whetherlumpsumsornot,
whichrepresent compensation forexpensesincurredin"fefee
performance ofofficialduties,shall,bssexcludedfromth.©basic
taxable amount,
2.Familyallowances andsocialbenefitsshallbsdeducted from
thebasictaxable amount®
3.Anabatement of10$foroccupations!andpersonal expenses
shallbemadefromtheamountobtained byapplying thepreceding
provisions .
Anadditional abatement equivalent totwicetheamountof
theallowance foradependent childpaidtothepersonliable
shallbemadeforeachchildorpersondependent ontheperson
liable.
Sumspaidbypersonsliableonaccountofthesocial
legislation towhichheissubjectshallbededucted fromthe
basictaxable amount
ACP-CES/45e/77

Thetax.shallbecalculated sonthe"taxable ^amountobtainedby
applying .paragraph .3»disregarding any^amountnot'exceeding
Bfrs803and-by.applying "the.ratecof4
8/otoamountsbetweenBfrs803and14178
10%toamountsbetween -Bfrs14179and19528
12-50%toamountsbetweenBfis19529and-22580
15%toamountsbetween'Bfrs-22381and25413
17-50%toamountsbetween -Bfrs-22414and28265
£0%toamountsbetweeniBfrs28266and31030
2250%toamountsbetweenBfrs31031and33883
25%toamountsbetweenBfrs33884and36-648
27-50%toamountsbetweenUfrs36649«nd39500
30%toamountsbetweenBfrs39501and-42265
3250%toamountsbetweenBfrs-42266-and45118
35%toamountsbetween -Bfrs45119and-47883
40%toamountsbetweenBfrs47884and50735
45%toamountsabove'Bfrs50735.
Theamountoftaxshallberounded downto"thelowerunit.
5.Bywayofderogation fromparagraphs 3and4»
sumspaidascompensation forovertime shallbe"taxedattherate
which,inthemonthpreceding thatofpayment,wasappliedtothe
highestportionofthetaxable amountoftheemployee'sremuneration .
Payments madeonaccount oftermination of'serviceshall
betaxed,afterapplying theabatements laiddowninthefirsttwo
subparagraphs ofparagraph 3*arateequaltotwothirds
oftheratioexisting ,atthetimeof□.astsalarypayment ,between :
-theamountoftaxpayable and
-thebasictaxable amountasdefinedinparagraphs 1-2and
3.
ACP–CEE/45e/77(ANNEXI)

Whenthetaxable paymentcoversaperiodoflessthan
onemonthtierateofthetaxshallbethatwhichiaapplicable to
thecorresponding monthly payment.
Whenthetaxablepaymentcoversaperiodofmorethan
onemonththetaxshallbecalculated asifthispaymenthadbeen
spreadevenlyoverthemonthstowhichitrelates.
Corrective payments notrelatedtothemonthduring
whichtheyarepaidshallbesubjecttothetaxtowhichtheywould
havebeensubjecthadtheybeenmadeatthepropertime.
TheCommittee onIndustrial Co-operation shalladoptany
necessary provisions concerning theapplication ofthearrangements
laiddowninthisAnnex#
TheDirector oftheCentreshallensurethatthese
arrangements areapplied.
Wherenecessary heshallreferbyanalogytotherelevant
arrangements applicable toofficials oftheEuropean Communities
andinparticular toCouncilRegulation (EECjEuratonij ECSC)No260/68of
29February 1.968.

ANNEXII
STATEMENT TOBERECORDED INTHECOUNCIL MINUTES
CONCERNING ARTICLE 2OPTHEDECISION
Itisunderstood thatanyamendment bytheCommittee on
Industrial Co-operation totheconditions andprocedure for
applying thetaxreferred tointhatArticlewillbecondi­
tionaluponanamendment toRegulation (EEC,Euratom,ECSC)
No260/68oftheCounciloftheEuropean Communities ,
ACP-CEE/45e/77