Stay up to date with all the latest news and publications on Greek tax legislation and regulations and the potential impact it may have. Below, you will find various tax alerts and/or publications. For details on news/publication click on language title of choice in order to access information in language of preference.
OECD Issues Discussion Draft on Low-Value- Adding Intragroup Services (18 Nov 2014)
The OECD, as part of its work on the Action Plan to address Base Erosion and Profit Shifting (BEPS), on 3 November 2014 released a discussion draft in relation to Action 10 proposing a simplified transfer pricing approach for low-value-adding intragroup services that will ultimately lead to revisions in Chapter VII of the OECD’s Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations.
30% reduction of the extraordinary contribution for 2015 & 2016 Law 4305/2014 (11 Nov 2014)
The Greek parliament ratified on 31/10/2014 a new tax law implementing significant changes in the Greek tax legislation:-
- The annual extraordinary contribution imposed on individuals is reduced by 30% for the tax years 2015 & 2016.
- Moreover, the latest tax law amends the provision regarding imputed income for the acquisition of real property.
Greek Ministry of Finance issues Templates & Guidelines for Advance Pricing Agreement Negotiations (3 Nov 2014)
In an effort to provide taxpayers with an integrated procedural framework for the negotiation of advance pricing agreements (APAs), the Greek Ministry of Finance released on 16/10/2014 template application forms for both preliminary consultations and formal negotiations, as well as additional guidelines on the overall APA procedure
Social Security-Labor News (9 July 2014)
Social security contributions reduced for employers and employees from 01.07.2014 and abolition of IKA Special Book from 01.06.2014
New labor law requires employers to report employee annual leave (4 June 2014)
Law 4254/2014 requires all employers to report, by the end of January, the number of annual leave and vacation bonus days taken by an employee during the previous calendar year. This information must be provided electronically to the Information System of the Hellenic Ministry of Labour, Social Security and Welfare (ERGANI).
Upcoming deadline to file real estate tax form (21 May 2014)
The deadline for submission of the real estate E9 tax form is 30 May 2014.
Developments on capital gains taxation for foreign investors (16 May 2014)
Greece’s Ministry of Finance issued a press release before midnight of May 15th to revoke Circular POL 1117/2014, by which foreign investors were called to pay capital gains tax on the sale of sovereign and corporate bonds sold between 29.2.2012 and 31.12.2013.
Click on language of preference for full details. EN
Guidance issued on capital gains tax obligations of nonresidents (30 April 2014)
Greece’s Ministry of Finance issued guidance on 25 April 2014 (Circular POL 1117/25.4.2014) that clarifies the capital gains tax obligations arising on gains derived from Greek state and corporate bonds earned up to 31 December 2013 by nonresident corporations and individuals that do not have a permanent establishment in Greece. The guidance applies in cases in which a Greek bank intermediary has not withheld the 33% tax due where the gain is derived by a non-resident corporation or 20% in the case of a non-resident individual.
Greece Provides Guidance on Transfer Pricing Rules (25 April 2014)
Greece’s Finance Minister has issued a ministerial decision that provides guidance on the contents of the transfer pricing documentation file, the parties subject to the transfer pricing rules and exemptions therefrom, language requirements, transfer pricing documentation methods, and the content of the summary information table.
Submission of FY2013 Summary Information Table until April 30, 2014 (24 April 2014)
Under Greek tax law, companies of any form operating in Greece are required to submit annually a Summary Information Table (SIT) with respect to their intercompany transactions within four months from the end of each fiscal year. Consequently, for fiscal years ended on December 31, 2013 the deadline is 30 April 2014.
The SIT may only be electronically filed in the web page of the General Secretariat of Information Systems (GSIS) – www.gsis.gr– of the Greek Ministry of Finance.
New tax law affects Income Tax Code and Tax Procedure Code (17 April 2014)
Deloitte’s Tax Department communicates the important changes that affect both the Income Tax and the Tax Procedure Codes, after the ratification of Law 4254/2014 by the Greek Parliament and its publication in the Government Gazette.
Capital tax levied on incorporation of companies abolished (11 April 2014)
Law 4254/2014 abolishes the capital tax levied at the time a company is incorporated.
As from 7 April 2014, the 1% capital tax levied at the time an entity listed in Law 1676/1986 (e.g. corporations, partnerships, joint ventures, etc.) is incorporated is abolished.
Ministry of Finance communicates the list of non-cooperative States and States with a beneficial tax regime (11 March 2014)
The Ministry of Finance communicated the list with the non-cooperative States and the ones with a beneficial tax regime for the year 2014, in accordance with Article 65 of the new Income Tax Code.
New labor law rules modify work hour reporting requirements and introduce fines (29 January 2014)
The Greek Parliament has approved L. 4225/2013 that introduces a new Modifying Working Hours and Overtime Book and a penalty for failure to register employees who have been declared in “ERGANI”, in the Analytical Periodical Statement.
New Tax Procedure Code amended (28 January 2014)
A law approved on 31 December 2013 (Law 4223/2013 on the “Unified Real Estate Ownership Tax and other provisions”) contains changes to the 2013 Tax Procedure Code (L.4174/2013).
New Annual Real Estate Ownership Tax in Effect (24 January 2014)
The Greek parliament approved a new law on 21 December 2013 (Law 4223/2013) that introduces a new unified Annual Real Estate Ownership Tax (AREO). The AREO applies as from 1 January 2014 and replaces the previous Real Estate Tax.
Tax Calendar - Foreign-source interest income tax return deadline (17 January 2014)
Greek tax residents who receive interest income from bank deposits abroad are required to file a special tax return in order to report the interest income received during the calendar year by 31 January of the year following.
As a result, foreign-source interest income on deposits that was paid or credited during 2013 must be declared and the relevant Greek income tax of 15% shall be paid by 31 January 2014.
New Income Tax Code amended (15 January 2014)
A law approved on 31 December 2013 (Law 4223/2013 on the “Unified Real Estate Ownership Tax and other provisions”) contains changes to the 2013 Income Tax Code (l.4172/2013).
The new law clarifies that the 2013 Income Tax Code replaces all provisions in the previous code and that all regulatory acts and circulars issued under the old code are abolished. Please see language links for other important changes.
Procedure for Negotiation of Advance Pricing Agreements (14 January 2014)
Early in 2013, the Greek Parliament approved a law -- – Law 4110/2013 -- that rationalized and modernized Greece’s transfer pricing rules, and consolidated the legislative framework for transfer pricing documentation. The law also introduced an APA program effective 1 January 2014, which would enable taxpayers to obtain advance approval of their transfer pricing practices. Later in 2013, the new Tax Procedures Code -- -- Law 4174/2013 – restated the provisions of Law 4110 for the APAs with minor amendments. The Greek government has now issued regulations to establish rules for negotiating APAs.
Issues guidance on compliance obligations relating to withholding tax on dividends, interest and royalties (14 January 2014)
The Greek Ministry of Finance issued two Circulars (1011 and 1012/2014) on 2&3 January 2014 respectively that contain guidance on the filing of tax returns and the payment of withholding tax on dividends, interest and royalties in accordance with the provisions of the new Income Tax, applicable for payments taking place as from 1.1.2014 onwards
Special Taxation of Tax Free Reserves (3 January 2014)
The Ministry of Finance published Circular 1007/2014 regarding the special taxation of tax free reserves. The key points are the following:Taxable Entities; Reserves captured by the special taxation; Tax rates; and Payment and remittance of tax.
Deadline extended for option to tax applications and other VAT amendments introduced (4 December 2013)
The Greek Parliament has enacted a law extending the filing deadline for the application to opt to tax professional leases.
Authorities issue guidance on submission of Analytical Periodical Statement (31 October 2013)
New measures relating to the submission of the Analytical Periodical Statement was announced. The new rules apply as from 1 November 2013.
Employers that systematically avoid paying their social security contributions will not be permitted to submit the Analytical Periodical Statement electronically (pursuant to Article 17 of L.3846/2010) and the authorities will take all steps necessary to enforce payment.
Guidance issued on gains from transfer of listed and unlisted shares (22 October 2013)
18 October 2013 Ministerial Circular clarifies the tax treatment of gains derived from the sale of listed and unlisted shares. According to the circular, gains derived from the sale of shares (whether or not listed) as from 1 January 2014 will be subject to tax in accordance with the provisions of the new Income Tax Code. That is, a final 15% tax will be levied on capital gains derived by an individual seller and a 26% tax (as ordinary income) will be levied on capital gains derived by a legal entity that maintains double-entry books.
Parliament passes new tax law (18 September 2013)
The Greek Parliament approved a tax bill (l. 4172/2013) on 23rd of July 2013 that will replace the existing Code of Income Taxation (codified by Law 2238/1994) on 1 January 2014. The new law makes a number of significant changes to the tax rules affecting companies and individuals. The law includes definitions of various terms, changes to the thin capitalizations rules, the introduction of controlled foreign company rules and the separate taxation of income from capital.
Transfer Pricing Documentation Requirements Clarified (10 September 2013)
The Greek Parliament approved amendments to the Corporate Income Tax Code on 9 August 2013 that decreased to € 20,000 per related entity and transaction type the threshold at which the documentation requirement for intragroup transactions is triggered.
The amendments also provide that the transfer pricing documentation file must be prepared and the summary information table submitted to the tax authorities by the end of the fourth month following the financial year-end. The documentation file must be made available to the tax authorities within 30 days of a relevant request.