CELEX: 51977PC0169
Language: en
Date: 1977-05-23
Title: Proposal for a COUNCIL REGULATION (EEC) on the application of Decision of the ACP-EEC Council of Ministers, on the arrangements applicable to the staff of the Centre for Industrial Development as regards taxation, social security and jurisdiction (submitted to the Council by the Commission)

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DOCUMENTS "COM"
COM (77) 169
Vol. 1977/0071
 ---pagebreak--- Disclaimer
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
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file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITI
                                               COM(77)169 final
                                               Brussels, 23 May 1977
                             Proposal for a
                        COUNCIL REGULATION (EEC )
               on the application of Décision             of the
               ACP-EEC Council of Ministers , on the arrangements
               applicable to the staff of the Centre for Industri­
               al Development as regards taxation, social security
                              and jurisdiction
               ( submitted to the Council by the Commission)
COM(77 ) 169 final
 ---pagebreak---                               > EXPLANATION
      At the Fiji meeting on 13th and 14th April 1977 » the ACP-EEC
Council of Ministers set up under the ACP-EEC Convention of Lome agreed
on a decision relating to the staff regulations for the personnel of
the Industrial Development Centre ( IDC ) ( established under the article
36 of the Convention ) concerning fiscal , social and jurisdictional matters .
      It is now necessary in accordance with article 74 § 3 of the
Convention for this decision to "be applied throughout the Community .
      This is the reason for the proposed regulation which is attached .
 ---pagebreak---             PROPOSAL FOR A COUNCIL REGULATION ( EEC )
  ON THE APPLICATION OF DECISION                OF THE ACP-EEC COUNCIL OF MINISTERS
                  ON THE ARRANGEMENTS APPLICABLE TO THE STAFF OF THE CENTRE FOR
  INDUSTRIAL DEVELOPMENT AS REGARDS TAXATION , SOCIAL SECURITY AND JURISDICTION
     THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
     Having regard to the Treaty establishing the European Economic Community
 and in particular Article 235 thereof ;
     Having regard to the proposal from the Commission ;
                                                                  1)
     Having regard to the opinion of the European Parliament         ;
     Whereas industrial cooperation with the ACP States is likely to contri­
 bute to the attainment of Community objectives in particular by contributing
to the harmonious development of world trade and by st renghthening the soli­
darity which binds Europe and the overseas countries ;
     Whereas , therefore , provisions concerning industrial cooperation , inclu­
ding the setting up of a Centre for Industrial Development , are contained in
                                   2)     .   ,     _ th
the ACP-EEC Convention of Lome        , signed on 28     February 1975 , and herein­
after referred to as the Convention ;
     Whereas steps should be taken to ensure the proper functioning of the
Centre for Industrial Development ;
     Whereas the ACP-EEC Council of Ministers , provided for by the Convention ,
has adopted , on the basis of Article 36 of the Convention , Decision n°
of         .. on the arrangements applicable to the staff of the Centre for
Industrial Development as regards taxation , social security , and jurisdic- ,
tion ;
     Whereas it is necessary, in conformity with Article 74 paragraph 3 of
the Convention , to take the measures required to implement this Decision
within the Community ;
                                                                       ■••• / •••■
1)
 1   O.J. nP
2 ) O.J. n° L 25 , 30.1.1976, p. 2.
 ---pagebreak---       Whereas the Treaty does not provide the necessary powers ft."
purpose ;
      HAS ADOPTED THIS REGULATION   :
                           Article 1
      Decision n°          77 of the ACP-EEC Council of Ministers ,, annexed
to this Regulation , shall apply within the Community .
                           Arti ele 2
      This Regulation shall enter into force on the day following i i.s publi­
cation in the Official Journal of the European Communities .
      This Regulation shall be binding in its entirety and directly applicable
in all Member States .
Done at
                                           FOR THE COUNCIL ,
                                             The President .
 ---pagebreak---       DECISION NO        /77 OF THE ACP-EEC COUNCIL OF MINISTERS
               on the arrangements applicable to the staff
                of the Centre for Industrial Development
          as regards taxation, social security and jurisdiction
THE ACP-EEC Council of Ministers
Having regard to the Lome Convention, and in particular Article 36
thereof ,
                                                            • « •/• • •
ACP-C2E/ 15 e/77
 ---pagebreak--- , whereas stepa should be taken to ensure the proper functi' \ng of the
  Centre for Industrial Development, and to determine the conditions
  under which Protocol No 5 to. the Lorsd Convention , on privilege-; a
  and immunities , can be- applied to certain, staff of that Centre ;
  Whereas by its Decision No- 2/76 of 14- July 1975 the ACP-EEC Council
  of Ministers laid down the Statutes and. rules of operation of the •
  Centre for Industrial Development and gave the Coxnuit fcae on Industrial
  Co -operation a mandate to adopt the conditions of employment of the
  staff ; whereas those conditions of employment wera adopted by the
   said Committee on
   Whereas r as provided for in the said Protocol No 5 t           staff of
   the Centre for Industrial Development shall enjoy the customary
   privileges , immunities and facilities in the territory of the
  Member States and of the ACP States , in particular , whilst carrying
   out their duties ? whereas these privileges , immunities and
   facilities must be treated as comparable to those of similar
  institutions operating tinder like conditions .
   HAS DECIDED AS FOLLOWS :
                                     Article 1
         The Director , the Deputy Director and the staff of the Centre for
   Industrial Development and , to the extent necessary , members of their
   families , shall , as regards social security schemes , be subject to
    the law of the State in whose territory the Centre has its headquarters ,
   unless they opt for the application of the law of the State to whose
   law they were last subject or the law of the State of which they are
   nationals .   However , this right of option may be exercised once only and
    must he exercised within the six months following the date of        • ntment
    it shall take effect on the date of entry into service .
   ACP-CEE/45 e/77
 ---pagebreak---                                         - 3 -
                                      Article 2
  1.        The Director , the Deputy Director and the staff of the Centre
       for Industrial Development shall be liable to a tax for the benefit
      of the Centre on salaries , wages and emoluments paid by the
      Centre .
            The conditions and procedures for applying this tax are laid
      down in the Annex .     The Committee on Industrial Co-operation
      shall be empowered to amend that Annex if necessary .
2.         Tax shall be collected by the Centre by means of deduction at
     source .   The proceeds of the tax shall be entered as revenue
     in the budget of the Centre .
3.         The persona referred to in paragrpah 1 shall be exempt from
     national taxes on salaries , wages and emoluments paid by the Centre .
                                     Article 3
1.         In th <=» event of a dispute between the Directo , the Depi^v
     Director or the staff of the Centre on the one hand and the Centre
     on the other , the dispute shall be brought to the attention of the
     Committee , which , with a view to seeking a solution , shall examine
     it in accordance with the arrangements and procedures which it shall
     lay down .
                                                                   0 0 ©/ o 9 9
   ACP-CEE/45 e/77
 ---pagebreak---  2*      If th.6 Coiuixnt t;6© is ."U3&at>j-e ,to r&acii a -solution acceptable to
    the parties to the dispute within two months .of its notification
    either party may initio.t.e arbitration ^proceedings , To this end
    one party shall inform the other of the nomination of an arbitrator®
    The other party shall then fee required to nominate a second
    arbitrator within one month,*           The two arbitrators shall choose a
    third arbitrator ,
 3.      The decisions taken :by the arbitration body .shall be binding
    on the parties and., to the extent necessary,, shall be rendered
    enforceable for the relevant authorities ;of the Member States of
    the Community or of the ACP .State®, .-and for tthe institutions and
    bodies set up under the .Convention,,
 4.      The disputes referred to in .paragraph 1 may not be subject
    to any other method of settlement .
                                     Article 4
         The ACP States , the Member States and the Community shall each
    take the measures necessary to implement this Decision,
                                               Done at
                                                         For the Council of Ministers ,.
                                                                  The President
ACP-CEE/45 e/77
 ---pagebreak---                                                                    ANNEX T
      Conditions and procedure for applying the tax for the benefit
                  o f the Centre for Industrial Development
 1.       The Director , the Deputy Director and the gtaff of the Centre ,
    excluding local staff , shall be liable to the tax for the benefit
    of the Centre referred to in Article 2 of the Decision ,,
          The tax shall be payable each month on salaries and
    emoluments of any kind paid by the Centre to each person liable .
          However, monies and allowances , whether lump sums or not ,
    which represent compensation for expenses incurred in "fefee
    performance of official duties , shall, bss excluded from th.© basic
    taxable amount ,
 2.       Family allowances and social benefits shall bs deducted from
    the basic taxable amount®
 3.       An abatement of 10$ for occupations! and personal expenses
    shall be made from the amount obtained by applying the preceding
    provisions .
          An additional abatement equivalent to twice the amount of
    the allowance for a dependent child paid to the person liable
    shall be made for each child or person dependent on the person
    liable .
          Sums paid by persons liable on account of the social
    legislation to which he is subject shall be deducted from the
    basic taxable amount
ACP-CES/45 e/77
 ---pagebreak---          The tax .shall be calculated son the "taxable ^amount obtained by
   applying .paragraph .3 » disregarding any ^amount not 'exceeding
   Bfrs 803 and -by .applying "the .rate cof4
           8 /o   to amounts  between Bfrs 803 and 14 178
         10%       to amounts between -Bfrs 14 179 and 19 528
          12-50%  to amounts  between Bfis 19 529 and -22 580
         15%      to amounts  between 'Bfrs -22 381 and 25 413
         17-50%   to amounts  between -Bfrs -22 414 and 28 265
         £0%      to amounts  between iBfrs 28 266 and 31 030
         2250%    to amounts  between Bfrs 31 031 and 33 883
         25%      to amounts  between Bfrs 33 884 and 36-648
         27-50%   to amounts  between Ufrs 36 649 «nd 39500
         30%      to amounts  between Bfrs 39 501 and -42 265
         32 50%   to amounts  between Bfrs -42 266 -and 45 118
         35%      to amounts  between -Bfrs 45 119 and -47 883
         40%      to amounts  between Bfrs 47 884 and 50 735
         45%       to amounts above    'Bfrs 50 735.
   The amount of tax shall be rounded down to "the lower unit .
5.        By way of derogation from paragraphs 3 and 4 »
    sums paid as compensation for overtime shall be "taxed at the rate
   which , in the month preceding that of payment , was applied to the
   highest portion of the taxable amount of the employee 's remuneration.
          Payments made on account of termination of 'service shall
   be taxed , after applying the abatements laid down in the first two
    subparagraphs of paragraph 3 *                         a rate equal to two thirds
   of the ratio existing , at the time of □.ast salary payment , between :
         - the amount of tax payable and
         - the basic taxable amount as defined in paragraphs 1 - 2 and
               3.
ACP–CEE/45 e/77 ( ANNEX I )
 ---pagebreak---       When the taxable payment covers a period of less than
one month ti e rate of the tax shall be that which ia applicable to
the corresponding monthly payment .
     When the taxable payment covers a period of more than
one month the tax shall be calculated as if this payment had been
spread evenly over the months to which it relates .
     Corrective payments not related to the month during
which they are paid shall be subject to the tax to which they would
have been subject had they been made at the proper time .
     The Committee on Industrial Co-operation shall adopt any
necessary provisions concerning the application of the arrangements
laid down in this Annex#
      The Director of the Centre shall ensure that these
arrangements are applied .
     Where necessary he shall refer by analogy to the relevant
arrangements applicable to officials of the European Communities
and in particular to Council Regulation ( EECjEuratonij ECSC ) No 260/68 of
29 February   1.968 .
 ---pagebreak---                                                     ANNEX II
 STATEMENT TO BE RECORDED IN THE COUNCIL MINUTES
       CONCERNING ARTICLE 2 OP THE DECISION
      It is understood that any amendment by the Committee on
Industrial Co-operation to the conditions and procedure for
applying the tax referred to in that Article will be condi­
tional upon an amendment to Regulation ( EEC , Euratom, ECSC )
No 260/68 of the Council of the European Communities ,
ACP-CEE/45 e/77