Tax & Legal Alerts

Parliament passes law 5100/2024 implementing Pillar Two rules

On 2 April 2024, the Greek parliament passed a new law providing, among other things, for the transposition into Greek legislation of Council Directive (EU) 2022/2523, which aims to ensure a global minimum level of taxation for multinational groups and large-scale domestic groups in the EU (“EU Pillar Two directive”). 

New arrangements for the Digital Employment Card, the classification of executive employees and the new forms of “Ergani II”

A decision of Greece’s Ministry of Labour and Social Security issued on
28 December 2023 (no. 113169/2023, government gazette no. 7421/B’/28.12.2023)
regulates, inter alia, the implementation of the Digital Employment Card
System, sets new wage limits for the classification of an employee as an
executive and redefines the terms for the electronic submission of the Labour
Inspectorate and DYPA forms to the ERGANI II online system.

Rates for capital duty and listed stock sales tax reduced

Reduced rates of capital duty and listed stock sales tax apply in Greece
pursuant to the enactment of Law 5073/2023 on 11 December 2023.

Minister of Finance issues FY 2022 list of jurisdictions with preferential tax regime

Greece’s Minister of Finance issued on 27 December
2023 Decision A.1205/2023 listing the jurisdictions deemed by Greece to have a
preferential tax regime for fiscal year (FY) 2022. 

Publication of action to strengthen new tourism SMEs announced

On 18 December 2023, Greece’s managing authority
announced the publication of an action under the “Competitiveness” program of
the National Strategic Reference Framework entitled “Strengthening the
Establishment and Operation of New Small and Medium-sized Tourism Enterprises.” 

Publication of action to strengthen establishment and operation of new SMEs announced

On 18 December 2023, Greece’s managing authority
announced the publication of an action under the “Competitiveness” program of
the National Strategic Reference Framework entitled “Strengthening the
Establishment and Operation of New Small and Medium-sized Enterprises.” 

Legislation enacts EU public CbC reporting directive, introduces specific requirements for submission of annual financial statements to Bank of Greece

On 14 November 2023, Greece published Law 5066/2023 (available in Greek
only) to transpose into domestic legislation Directive (EU) 2021/2101 of 24 November 2021, which amended Directive 2013/34/EU, as regards the disclosure of income tax
information by certain undertakings and branches, also known as the EU public
country-by-country (CbC) reporting directive

Tax authorities list transactions subject to stamp duty

Greece’s Independent Authority for Public Revenue issued on 20 October 2023 Circular E2062/20.10.2023, which lists alphabetically the most common transactions subject to stamp duty, the stamp duty rate per transaction, and the Stamp Duty Code (SDC) provisions applicable. 

List of noncooperative jurisdictions for FY 2022

Greece’s Minister of Finance issued on 25 October 2023 Decision
A.1160/2023 listing the jurisdictions that are deemed noncooperative for tax
purposes for fiscal year (FY) 2022. 

Pre-publication of "Strengthening the establishment and operation of new small and medium-sized tourism enterprises" action announced

 On 11 October 2023, Greece’s managing authority announced the pre-publication of an action under the "Competitiveness" program of the National Strategic Reference Framework entitled "Strengthening the establishment and operation of new small and medium-sized tourism enterprises." 

New Employment Law Provisions

L. 5053/2023, which has been published on 26 September 2023, introduces
important amendments to labour legislation including the incorporation of the
Directive (EU) 2019/1152 of the European Parliament and of the Council of 20
June 2019 on transparent and predictable working conditions in the EU.

Cross-border conversion, merger, and division directive transposed into domestic law

On 27 September 2023, the Greek Parliament adopted Law
5055/2023, which transposes into domestic law Directive (EU) 2019/2121
of the European Parliament and of the Council of 27 November 2019 amending
Directive (EU) 2017/1132 as regards cross-border conversions, mergers and
divisions.

Second call for proposals under “Manufacturing - Supply Chain” state aid scheme extended

On 25 September 2023, the Greek Ministry of Development
and Investments announced the extension, through to 29 December 2023, of the
second round of applications for the “Manufacturing—Supply Chain” scheme
(Decision 45997, Government Gazette 3292/Β/18-05-2023) under new Development
Law 4887/2022. 

Second call for proposals under “Aid for Tourism Investments” state aid scheme extended

On 25 September 2023, the Greek Ministry of Development
and Investments announced the extension, through to 29 December 2023, of the
second round of applications for the “Aid for Tourism Investments” scheme
(Decision 46001, Government Gazette 3291/Β/18-05-2023) of the new Development
Law 4887/2022. 

DAC 7 directive transposed into domestic law

On 4 September 2023, the Greek Parliament adopted Law 5047/2023, which
transposes Council Directive (ΕU) 2021/514 of 22 March 2021 amending Directive 2011/16/ΕU on administrative cooperation in the field of taxation (also known as “DAC 7”) into domestic law.

Special real estate tax: Exemption documentation and process amended

Greece’s Independent Authority for Public Revenue
issued decision A. 1089/2023 on 20 June 2023, amending the documentation and
process required to qualify for the exemption from the special real estate tax
(SRET), as set out in decision Α. 1206/2020. 

Call for proposals under "Green Economy Productive Investments - Produc-E Green" action announced

On 12 May 2023, the
Greek ministries of the Environment and Energy, Development and Investments,
and Finance published a call for proposals under the “Green Economy
Productive Investments - Produc-E Green” action within the framework of
Greece’s national Recovery and Resilience Plan (Greece 2.0). 

Second call for proposals under "Manufacturing - Supply Chain" state aid scheme announced

On 18 May 2023, the Greek Ministry of Development and
Investments published the second call for proposals on the “Manufacturing—Supply
chain” state aid scheme under new Development Law 4887/2022 (Gov. Gazette
45997/ B’ / 18-05-2023). 

“Digital Transformation of SMEs” and “Green Transition of SMEs” action packages - Details announced on applications submitted

Details regarding the funding applications that have been submitted, by category of region, for two Greek programs for small and medium-sized enterprises (SMEs)—the “Digital Transformation of SMEs” and “Green Transition of SMEs” action packages—were announced on 31 March 2023 and 3 April 2023, respectively. 

New electronic procedure for issuing tax residence certificates

A new decision (Α. 1052/2023) was issued by Greece’s
Independent Authority of Public Revenue (IAPR) and published in Greece’s
government gazette on 3 May 2023 to establish new content requirements and a
new procedure for issuing tax residence certificates. 

Second call for proposals under "Aid for investments in tourism" state aid scheme announced

On 18 May 2023, the Greek Ministry of Development and Investments
published the second call for proposals on the “Aid for investments in tourism”
state aid scheme under new Development Law 4887/2022 (Gov. Gazette 46001 B’/18-05-2023).

No withholding tax due on service fees paid to domestic branches of foreign legal entities resident in treaty partner states

Following a relevant query submitted by Deloitte Greece, on 3 April 2023 Greece’s Independent Authority of Public Revenue (IAPR) issued Circular E. 2019/2023, clarifying how to properly implement the provisions of article 62(2) and (3) of the Greek Income Tax Code in cases where Greek permanent establishments (PEs) of nonresident legal entities resident in a treaty partner state whose treaty includes a nondiscrimination clause receive service fees from persons liable to withhold tax in Greece. 

COVID-19 – Measures aiming to tackle the effects of the Coronavirus pandemic 31.03

1.     The application of super-reduced VAT rate on hygiene products and the reduced VAT rates on certain goods and services is extended

2.     Rental reductions for March 2021 – a new Ministerial Decision provides clarifications on the determination of the NACE codes of businesses that are eligible for the new measures regarding rent reduction corresponding to the period of March 2021  

Read the greek Tax alert, here

Participation exemption for capital gains from share transfers clarified 23.03

The Greek Tax Administration issued Circular E.2057/12.03.2021 on 12 March 2021, clarifying issues regarding the Greek participation exemption for capital gains from the transfer of shares. 

Read the greek Tax alert, here

2054 circular concerning guidelines on tackling COVID-19 consequences around transfer pricing related issues 22.03

The Independent Authority for Public Revenue (IAPR) issued earlier on March the 2054 circular concerning guidelines on tackling COVID 19 consequences around transfer pricing related issues. 

COVID-19 – Measures aiming to tackle the effects of the Coronavirus pandemic 11.03

1. Extension of the deadline for the submission of “Covid declaration” by lessors and their approvals by the lessees 

2. Extensions of the deadline for payment of social security contributions for employers and businesses 

3. Rent reductions – Introduction of amendments in the Decisions clarifying the eligible entities for measures applicable in November and December 2020 

Read the greek Tax alert, here

COVID-19 – Measures aiming to tackle the effects of the Coronavirus pandemic 02.03

Rental reductions – a new Ministerial Decision amends the previous one
regarding the determination of the NACE codes of businesses that are eligible for
the new measures regarding rent reduction corresponding to the period of
January and February 2021 

Read the greek Tax alert, here

New regulatory framework for family offices in Greece 19.02

On 17.02.2021, the Greek Parliament ratified a new law introducing a special tax regime for family offices.

Read the greek Tax alert, here

COVID-19 – Measures aiming to tackle the effects of the Coronavirus pandemic 18.02

Extension of the deadline for payment of debt instalments due in February 2021 – details on businesses that may benefit from the extension

Read the greek Tax alert, here

COVID-19 – Measures aiming to tackle the effects of the Coronavirus pandemic 16.02

Clarifications on the NACE codes of businesses that are eligible for the new measures regarding rent reduction corresponding to the period of January and February 2021

Read the greek Tax alert, here

COVID-19 – Measures aiming to tackle the effects of the Coronavirus pandemic 11.02

Clarifications on the NACE codes of businesses that are eligible for the postponement of the maturity and payment date for securities, pursuant to the provisions of art.28 of L.4772/2021

Read the greek Tax alert, here

Supreme Court decisions clarify concept of tax residence 10.02

Two new Supreme Court decisions (no. 403/20 and 418/20) issued on 5 February 2021 clarify that an individual may not be treated as a Greek tax resident simply for being appointed as the administrator of a single-member private company  (IKE in
Greek) and/or for participating in the management of a corporation (SΑ) in Greece. 

Read the greek Tax alert, here

COVID-19 – Measures aiming to tackle the effects of the Coronavirus pandemic 10.02

New legislative measures regarding rent reduction, financial support for lessors and the postponement of the maturity and payment date for securities.

Read the greek Tax alert, here

COVID-19: New measures aim to support employers and employees 04.02

Suspension of employment contracts for the month of February 2021 A joint ministerial decision issued by the Greek government on 30 January 2020 (no. 4374/131/30.01.2021, Greek Government Gazette no. 345/B’/31.01.2021) clarified the time and the manner for employers to submit declarations of employment contract suspensions for the month of February 2021.

Read the greek Tax alert, here

COVID-19 – Measures aiming to tackle the effects of the Coronavirus pandemic 15.01

Extension of the application of reduced VAT rate at 6% on certain hygiene products

Read the greek Tax alert, here

COVID-19 – Measures aiming to tackle the effects of the Coronavirus pandemic 14.01

Provision of clarification on specific benefit provided to lessors that receive reduced rent as a result of the measures addressing the adverse effects of COVID-19

Read the greek Tax alert, here

Offsetting pharmaceutical expenditure clawback with R&D and investment expenses for FY2020 11.01

A joint ministerial decision issued by the Greek government on 31 December 2020 sets out th ecircumstances in which a pharmaceutical expenditure clawback may be offset with researchand development (R&D expenses and investment expenses for the development of products,services, or production lines)

Read the greek Tax alert, here

Latest developments in income tax issues 07.01

1. Tax treatment of extraordinary income from the benefit of 25 discount applied to VAT liabilities paid on time in the context of the measures adopted and addressing the COVID 19 pandemic

2. Guidance on application of depreciation rules

3. Clarifications on the tax treatment of bad debts

Read the greek Tax alert, here

COVID-19 Measures aiming to tackle the effects of the Coronavirus pandemic 03.12

Deadline for payment of social security contributions owed by businesses and employers that have already benefited from an extension of the payment deadline in the context of measures aiming to tackle the adverse effects of COVID-19 pandemic extended

Read the greek Tax alert, here

E-invoicing - Procedure and method for submitting the declarations to the tax authorities for the exclusive use of e-invoicing 02.12

Decision 1258-2020 was published on November 27, 2020 which defines the procedure and the method of submitting to the tax authorities the declarations for the exclusive use of e-invoicing through a certified supplier and the acceptance of e-invoicing through such a supplier.

Read the greek Tax alert, here

COVID-19 Measures aiming to tackle the effects of the Coronavirus pandemic 25.11

Clarifications on issues relating to the submission of Covid Declarations” for the period between March until August 2020

Read the greek Tax alert, here

COVID-19 - Repayable advance IV – grant of State loans to businesses affected by the outbreak and spread of COVID-19 during September and October 2020

The newly issued Joint Ministerial Decision with ref.no. ΓΔΟΥ 281/2020 regulates the procedure and the requirements for the grant of State loans (Repayable advance IV) to businesses that have been affected by the outbreak and spread of COVID-19 during September and October 2020.

Read the greek Tax alert, here

COVID-19 Measures aiming to tackle the effects of the Coronavirus pandemic 20.11

1. Application of the optional 30 reduction of commercial lease due in October 2020

2. Application of the 40 reduction of commercial lease due in October 2020

3. Application of the 40 reduction of commercial lease due in November 2020

4.  Specia lprovisions for individual lessors

Read the greek Tax alert, here

 

COVID-19 Measures aiming to tackle the effects of the Coronavirus pandemic 06.10

1. Extension of VAT returns

2. Extension of the deadline for filing CIT and WHT returns

3. Extension of the deadline for filing duties and other tax returns

Read the greek Tax alert, here

COVID-19 Measures aiming to tackle the effects of the Coronavirus pandemic 05.10

1. Extension of VAT returns

2. Extension of the deadline for filing CIT and WHT returns

3. Extension of the deadline for filing duties and other tax returns

Read the greek Tax alert, here

COVID-19 Measures aiming to tackle the effects of the Coronavirus pandemic 18.09

1. Extension of the application of reduced commercial lease

2. Optional reduction of commercial lease

3. Measuressupporting lessors in case they do not receive lease fees ,according to legislative provisions in response to the adverse effects of COVID-19 pandemic

4. Reduction in advance income tax payment for FY 2019 for business sectors related to air and ferry transport services

5. Extension of the deadline for the annual General Assembly of  SA, PC and Ltd

Read the greek Tax alert, here

COVID-19 Measures aiming to tackle the effects of the Coronavirus pandemic 17.07

1. Application of reduced commercial lease in July and August 2020

2. Payment of Income Tax in 8 instalments 2 tax credit for individuals Payment of Annual Real Estate Tax (“ENFIA") for 2020

Read the greek Tax alert, here

COVID-19 Measures aiming to tackle the effects of the Coronavirus pandemic 09.07

1.  Clarificationson the procedure and the requirements for the grant of the State loan (“repayable advance”) to businesses affected by the outbreakand spread of COVID-19

2. Extensionof the measures aiming to the provision of support to businesses and individuals by financial institutions Postponement of thepayment of loan instalment until 31 12 2020

Read the greek Tax alert, here

COVID-19 Measures aiming to tackle the effects of the Coronavirus pandemic 24..06

1. Extension of the deadline for payment of assessed debts, which are due in June and are owed by businesses with specific CPA codes until 31.10.2020

2. The supply of goods and the provision of services free of charge aiming to address the needs resulting from COVID-19 shall be exempted from VAT

Read the greek Tax alert, here

E-books reporting to begin 1 October 2020; e-invoicing incentives released

In an effort to automate various reporting procedures, reduce administrative costs, and deter tax abuses, Greece’s tax authorities have implemented new processes that will enable companies to maintain and submit certain data to electronic books (e-books) and incentivize them to adopt e-invoicing. The following discusses recent guidance issued about e-books and e-invoices.

E-books

The Ministry of Finance and the Independent Authority of Public Revenue (IAPR) issued a joint ministerial decision on 22 June 2020 setting forth the framework for entities to transmit their books and tax records electronically to the IAPR (Decision 1138/22-6-2020).

Entities will have to characterize the transactions that they report on the myDATA platform, classifying them to revenue and expense categories, but a significant requirement for the proper disclosure of an entity’s accounting and tax information will be the mandatory characterization of part of the data by a licensed accountant.

The decision provides further details on the scope of the new process and applicable exemptions, the data to be transmitted, transmission methods and procedures, applicable deadlines, how transactions should be characterized, and other requirements.

Implementation of the new process will be performed in stages to provide entities sufficient time to adapt to the new framework. As such, data transmission will begin on 1 October 2020 for tax documents that have been issued as from this date. The transmission of data, as well as the characterization of transactions, for the first nine months of 2020 will have to be done gradually, in phases, and will have to be finalized by 28 February 2021. The transmission of sales data by entities that elect to use e-invoicing through a licensed supplier, as further discussed below, will start on 20 July 2020.

E-invoicing

In a draft bill published on 19 June 2020, the government provided certain incentives applicable until 2022 for entities that opt to implement e-invoicing exclusively. The election would apply following the filing of a declaration with the IAPR and it would apply to sales invoices issued to and received (or received only) from licensed suppliers for fiscal years starting as from 1 January 2020.

Specifically:

• The statute of limitation period during which a tax audit by the authorities can take place and tax can be assessed would be reduced:

o From five years to three years for entities electing to implement e-invoicing as an exclusive means of issuing tax documents (which automatically means that they are implementing e-invoicing for the receipt of tax documents as well); and

 o From five years to four years for entities electing to implement e-invoicing only for the receipt of tax documents.

• Twice the amount of expenses incurred to acquire the initial technical equipment and software required for e-invoicing would be depreciable in full, for tax purposes, in the fiscal year incurred.

• Twice the amount of expenses incurred for the production, transmission, and electronic archiving of e-invoices for the first year that they are of issued would be recognized as a tax deductible item.

• The deadline for the processing of tax refund claims for those fiscal years when companies have elected to issue e-invoices exclusively would be set at 45 days (reduced from 90 days currently).

The draft bill also provides that the incentives would not apply and/or would be revoked if an entity is believed to have engaged in tax evasion.

In addition, the bill specifically mentions that the incentives would apply to fiscal year 2020 in conjunction with e-books and tax document data beginning to be uploaded to the IAPR’s “myDATA” platform.

Finally, the Governor of IAPR is expected to issue a decision in the near future providing further details for the implementation of the e-invoicing program.

COVID-19 Measures aiming to tackle the effects of the Coronavirus pandemic 22.06

1. Extension of the deadline for the submission of the “COVID Declaration”

2 .Extension of the deadline for payment of assessed debts which are due inJune and owed by individuals – lessors who lease real estate property forcommercial use to businesses with specific CPA codes

Read the greek Tax alert, here

Extension of the deadline for filing the annual personal and corporate Income Tax Return for FY 2019

On 18.06.2020 the Ministry of Finance announced, through a Press Release, that the deadline for filing the annual personal and corporate Income Tax Return for FY 20019 is extended until 9.07.2020. It is further highlighted that the deadline for the payment of the first instalment of the amount of income tax due remains unchanged; thus, it expires on 31.07.2020.

Moreover, it is announced that additional measures are expected, which will aim to facilitate individuals and businesses to repay their tax liabilities. In addition, it is stated that:

•  A 2% discount is provided for individuals who proceed with a lump-sum payment of their personal income tax due;
  
  
• The repayment of the personal income tax will be realized in eight (8) monthly instalments, instead of three (3) bi-monthly instalments, which were in force up to now; 
  
  
• The repayment of the corporate income tax due will be effected in eight (8) monthly instalments, instead of six (6), which were valid up to now;
   

• The repayment of the amount of Annual Real Estate Ownership Tax due will be realized in six (6) instead of five (5) monthly instalments. 
  

COVID-19 Measures aiming to tackle the effects of the Coronavirus pandemic 18.06

• Electronic submission of the Declaration of Real Estate Lease Information
  
  
• Submission of the “COVID Declaration” by owners lessors ofreal estate, who receive lease reduced by 40

Read the greek Tax alert, here

 

COVID-19 Measures aiming to tackle the effects of the Coronavirus pandemic 12.06

According to the provisions of the Ministerial Decision with ref no A.1135/09.06.2020 businesses may benefit from the payment of reduced commercial lease at a rate of 40 provided that they are still affected by the spread and outbreak of COVID-19 in June.

Read the greek Tax alert, here

COVID-19 Measures aiming to tackle the effects of the Coronavirus pandemic 04.06

1. Extension of the deadline for payment of social security contributions regarding the period of February 2020

2. Extension of the deadline for payment of social security contributions for businesses employers regarding the period of March 2020

3. Overview of the decisions currently applicable to the extension of the deadline for payment of social security contributions

Read the greek Tax alert, here

COVID-19 Measures aiming to tackle the effects of the Coronavirus pandemic 02.06

1. Extension of the benefit of 25 reduction in punctually paid instalments of assessed debts due in May 2020

2. Extension of the measure of reduced commercial lease

3. Extension of the exemption from payment of 40 lease fees

4. Reduction of VAT rates imposed on certain goods and services

5. Support measures for lessors as a result of not collecting rent, pursuant to the legislative provisions enacted to address the adverse effects of COVID-19

6. Postponementof the extension of the deadline for maturity and paymentof securities owed by businesses operating in the tourist industrypostponement of holder’s debts

7. 25Reduction in social security contributions for self employed personsand free lancers

Read the greek Tax alert, here

COVID-19 Measures aiming to tackle the effects of the Coronavirus pandemic 21.05

The Ministry of Finance, though a Press Release published on 20.05.2020, announced a new series of tax measures aiming to address the COVID-19 crisis.

Read the greek Tax Alert, here

 

 

COVID-19 Measures aiming to tackle the effects of the Coronavirus pandemic 15.05

Extension of the support measures in May

Read the greek Tax Alert, here

 

 

COVID-19 Measures aiming to tackle the effects of the Coronavirus pandemic 13.05

Clarifications on the provision of State loan (“repayableadvance”) (Circular with ref.no.E.2067/11-05-2020).

The Independent Authority for Public Revenue (“IAPR”) issued a Circular providingclarifications on the repayable advance that will be awarded by the State to businesses infinancial distress, due to the outbreak and spread of COVID-19.

Read the greek Tax Alert, here

 

 

COVID-19 Measures aiming to tackle the effects of the Coronavirus pandemic 12.05

1. Extension of deadline for the payment of social securitycontributions of April 2020 until 30 11 2020 (Joint MinisterialDecision with ref no Δ 15 /Δ'/οικ 16484 499

2. Extension of deadline for the payment of social securitycontributions of April 2020 for self employed persons and freelancers (Joint Ministerial Decision with ref noΔ 15 /Δ'/οικ 16486 50001

Read the greek Tax Alert, here

COVID-19 Measures aiming to tackle the effects of the Coronavirus pandemic 05.05

• Legislative Decree issued on 01.05.2020 regulating new measures to address the continuing effects of the spread of COVID-19 and the return to regularity from a social and financial perspective

• Ministerial Decision with ref.no. Α.1099/2020 regarding the financial support of holders of securities – the final date for the Submission of application is set on 7.5.2020.

• Joint Ministerial Decision issued by the Ministries of Finance -  Development & Investments regarding the procedure and the conditions for the granting of the State loan (repayable advance) – Deadline for the submission of application set on 15.5.2020.

• Provision of special purpose compensation to certain categories of self-employed persons, who operate in certain scientific sectors – free lancers – Joint Ministerial Decision issued by the Ministries of Finance - Development & Investments  and Labor & Social Affairs -  Deadline for the submission of application set on 8.5.2020.

• Press Release issued by the Ministry of Finance on 30.04.2020 regarding the new response measures to tackle the adverse effects of COVID-19 in May

Read the Tax alert in greek, here. 

COVID-19 Measures aiming to tackle the effects of the Coronavirus pandemic 30.04

1. Provision of clarifications on the 25 deduction in the amountof debt payments due in April by the Independent Authority for Public Revenue

2. New credit instrument providing working capital along withgranting of full interest rate subsidy by the Hellenic Development Bank

Read the Tax alert in greek, here.

COVID-19 Measures aiming to tackle the effects of the Coronavirus pandemic 27.04

L.4684/2020 – ratification of the Legislative Decree issued on 30.03.2020 – extension of the range of beneficiaries of the exceptional financial aid – postponement of the collection of excise duty and VAT on alcoholic drinks and other alcoholic products by the customs authorities

According to the newly enacted Law 4684/2020 (published in the Government Gazette Volume Α’ 86/2020), the provisions of the Legislative Decree issued on 30.03.2020 are ratified, while the following provisions are also introduced:

• The provision of the exceptional financial aid of EUR 800 is extended to free lancers and self-employed persons, sole proprietors as well as businesses with the legal form of general and limited partnerships, limited and private limited companies with zero to twenty (20) employees. To be noted that prior to the amendment made by the recent legislative provision, all aforementioned businesses with zero to five (5) employees were beneficiaries of the exceptional financial aid amounting to EUR 800.

• The postponement of the collection of excise duty, VAT due and any other charges on ready-to-drink alcoholic drinks and other alcoholic products, which depart from a suspension arrangement within March 2020; the said postponement of the collection by the customs authorities shall last until 25.06.2020. Similarly, for all the above products, which depart from a suspension arrangement within April 2020, the postponement of the collection of aforementioned charges shall last until 25.07.2020.

COVID-19 Measures aiming to tackle the effects of the Coronavirus pandemic 24.04

The Independent Authority for Public Revenue provides detailed guidance for the  25% deduction in VAT.

Read the Tax Alert in Greek, here.

COVID-19 Measures aiming to tackle the effects of the Coronavirus pandemic 13.04

Circular issued by the Independent Authority for Pubic Revenue. Extension of deadlines and 25% discount is clarified.

Read the Tax Alert in Greek, here.

COVID-19 Measures aiming to tackle the effects of the Coronavirus pandemic 09.04

On 09.04.2020, the Ministry of Finance through the issuance of a Press Release announced the extension of the deadline for the submission of interest about the award of the repayable advance (the term used for loans granted by the State to businesses affected by the virus crisis). In particular, it has been announced, that businesses, which wish to receive the repayable advance from the State, shall submit their expressions of interest in the electronic platform “myBusinessSupport” until Tuesday, 21.04.2020.

COVID-19 Measures aiming to tackle the effects of the Coronavirus pandemic 03.04

As the pandemic continues to spread and affect the Greek economy, the Hellenic Ministry of Finance announced on April 3, 2020, additional measures in order to tackle the consequences of the outbreak.

Read the Tax Alert in Greek, here.

COVID-19 Measures aiming to tackle the effects of the Coronavirus pandemic 01.04

On 01.04.2020, a Legislative Decree has been issued to tackle the effects of the pandemic.

Read the Tax Alert in Greek, here.

COVID-19 Measures aiming to tackle the effects of the Coronavirus pandemic 30.03

On 30.03.2020, a Legislative Decree has been issued to tackle the effects of the pandemic.

Read the Tax Alert in Greek, here.

COVID-19 The new regulatory framework in the employment sector

The new regulatory framework consists of a series of urgent and temporary measures in order to tackle the negative effects of COVID-19 and limit its spread. 

Read the Employment Law Alert in Greek, here.

 

COVID-19 - Clarification on the postponement of VAT and assessed debt payments

On 22 March 2020, the Ministry of Finance issued a Decision with ref.no. A.1054/2020 regarding the postponement of VAT payments, as a result of the spread of COVID-19.

Read the Tax Alerts in Greek, here & here.

COVID-19 Third package of measures in order to tackle the effects of the spread of Coronavirus

On 20.03.2020, the Ministries of Finance and Labour announced the third package of measures in order to tackle the adverse effects of the spread of COVID 19.

Read the Tax Alert in Greek, here.

Urgent measures to counter the consequences and prevent the spread of COVID-19

In light of the outbreak of COVID19, the Greek government adopted a series of new provisions on 12 and 14 March 2020, including the Act of the President of the Hellenic Republic of Legislative Content dated 11 March 2020 (National Gazette no. Α’ 55/11.03.2020), which provide urgent measures to counter the negative effects of COVID-19 and limit its spread in the workplace.

Read the Legal Alert in Greek, here.

 

COVID-19 New package of measures in order to tackle the adverse effects of the spread of Coronavirus

On 18.03.2020, the Ministries of Finance and Labour announced a new package of measures in order to tackle the adverse effects of the spread of COVID-19.

Read the Employment Law Alert in Greek, here. 

COVID-19 Legislative Act of 11 March 2020 regulating support for businesses

A Legislative Act titled “Emergency contingency measures to tackle the adverse effects of the outbreak of COVID 19 and to address the need to limit the spread of the virus” was published in the Government Gazette. The Act regulates a series of measures to support businesses and employees affected by the virus.

Read Tax Alert in Greek, here.

Ministerial decision issued on alternative lump sum taxation for individuals

On 27 February 2020, Greece’s Ministry of Finance issued a decision (A1036/2020) establishing the conditions and procedure for high-net worth individuals who transfer their tax residence to Greece to qualify for alternative lump sum taxation under article 5A of Law 4172/2013 (Income Tax Code (ITC)). 

Read Tax alert in Greek here

Offsetting pharmaceutical expenditure clawbacks with R&D and investment expenses

A Joint Ministerial Decision issued by the Greek government on 24 January 2020 sets out the circumstances in which a pharmaceutical expenditure clawback may be offset with research and development (R&D) expenses and investment expenses for the development of products, services, or production lines.

Read Tax alert in Greek here

List of individuals required to file Source of Funds (SoF) and Financial Interests (FI) declarations due by  February 29, 2020

Companies and institutions that employ or supervise individuals required to file “source of funds” (SoF) and “financial interests” (FI) declarations must submit a list of these individuals via the Ministry of Finance’s online platform by the end of February each year (L.3213/2003 article 1 paragraph 3, as amended). 

Read Tax alert in Greek here

 

Taxation of dividends clarified

Greece’s Independent Authority for Public Revenue issued guidance on 30 January 2020 (Circular Ε. 2012/2020) that clarifies when the 5% dividend withholding tax rate applies (recently reduced from 10% by L. 4646/2019).  

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Indirect Taxation – Recent Developments

Recent indirect tax developments in Greece include a VAT suspension regime for newly developed real estate, the reclassification of certain goods to qualify for
reduced rates of VAT, the extension of the application of reduced VAT rates for
certain islands, and guidelines for the adjustment of input VAT deducted with respect to certain unused assets. 

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Married couples may file separate individual income tax returns (L. 4583/2018)

Greece’s Independent Authority for Public Revenue’s (AADE) electronic platform is ready to receive applications for the filing of separate individual income tax returns
for tax year 2019. 

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List of individuals required to file Source of
Funds (SoF) and Financial Interests (FI) declarations due by  February 29, 2020

Companies and institutions that employ or supervise individuals required to file “source of funds” (SoF) and “financial interests” (FI) declarations must submit a list of these individuals via the Ministry of Finance’s online platform by the end of February each year (L.3213/2003 article 1 paragraph 3, as amended). 

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New compliance requirements before the end of 2019

Find out about: 

1) Articles of Association (AoA) alignment for sociétés anonymes (S.A./A.E.) 

2) Ultimate beneficial owners (UBOs) registry

3) Filing of financial statements with Bank of Greece

4) Penalties for noncompliance

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Country-by-Country (CbC)  Reporting Circular Amended

The Independent Authority for Public Revenue (IAPR) issued decision No. 1341/2019 (published on September 16, 2019) which amends previous guidance (Circular POL.1184/22-11-2017) on the filing and exchange of country-by-country (CbC) reports by multinational enterprise (MNE) groups.

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New Law 4623/2019 September 2019 – Employment Law Alert

The Greek parliament adopted Law 4623/2019 ("Regulations of the Ministry of Internal Affairs, provisions on digital governance, pension arrangements and other urgent matters") on 8 August 2019, which includes significant changes to the labor legislation.

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Framework for e-books digital platform released for public consultation 

On August 1^st 2019, the Greek Independent Authority of Public Revenue (IAPR) published the framework for the operation of the digital platform, myDATA, for public consultation, which will last until 6 September. The platform will enable companies to maintain electronic books (e-books) and record invoice and tax receipt data as well as certain other data.

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New law reduces annual real estate ownership tax rates and modifies installment payment rules

Law 4621/2019, which was approved by the Greek parliament on 31/07/2019, significantly reduces the Annual Real Estate Ownership Tax (ENFIA) paid by individuals. 

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States with preferential Tax Regime

List of jurisdictions with preferential tax regimes for FY 2018 published.

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Call for proposals under Development Law 4399/2016

Government announces third call for proposals on state aid scheme for mechanical equipment. On 18 February 2019, the Ministry of Economy and Development in Greece initiated the third call for proposals for the state aid scheme “Aid for Mechanical Equipment” (Decision 21141, Gov. Gazette 517/20-02-2019) under Development Law 4399/2016

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Guidance on credit for corporate tax paid on foreign dividend income earned by tax resident individuals

Circular No. E.2018/2019, which was issued by the Greek tax authorities on 28 January 2019, provides guidance on the foreign tax credit that is granted for dividends derived by Greek tax resident individuals from a foreign company in a case where an applicable tax treaty provides for a tax credit for both the withholding tax on the dividends and the underlying corporate tax corresponding to the distributed dividends.

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Tax incentive for creation of new jobs implemented

On 31 December 2018, the Greek parliament approved guidance (POL. 1244, published in the government gazette on the same date) that specifies the conditions for the application of article 71D of tax law 4172/2013, introducing a “super deduction” for an employer’s social security contributions for the creation of new full-time jobs. The incentive applies as from the 2019 tax year.

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Clarifications on tax treatment of forgiveness of debt under art. 62 of L. 4389/2016

Guidance Circular Ε.2021/31.1.2019, issued by the Greek Ministry of Finance on 31 January 2019 provides clarifications regarding the application of a provision of a 2016 law (article 62 of Law 4389/2016) relating to the forgiveness of certain debts. Article 62 regulates the tax treatment of the benefit arising at the level of individuals or legal persons from the partial or total write-off of debt as a result of an out-of-court settlement or upon the enforcement of a court decision if the debt is held by: (i) credit and financial institutions; (ii) credit and financial institutions under liquidation proceedings; or (iii) legal entities incorporated under Law 4354/2015 (i.e. certain entities dealing with non-performing loans).

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E-registration platform for vessels is operational

The “e-register for vessels" electronic platform, which is available through the Greek tax authorities’ website and aims to progressively migrate all transactions related to pleasure boats and vessels (including certain small cruise ships) to a fully electronic environment, is now operational. Certain vessels will have to e-register by 15 May 2019.

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Indirect taxation – Recent changes

By virtue of a Ministerial Decision (No 2/95717, Government Gazette 5888/31.12.2018) which was published on 31 December 2018, implementing an Act of Legislative Content (Government Gazette A' 221/ 31.12.2018), the application of the special VAT rates (the Mainland rates reduced by 30%) for the islands of Leros, Lesbos, Kos Samos and Chios is extended for a period of six months, namely from 1 January 2019 until 30 June 2019, for the supply of goods and services, provided the necessary criteria are met. The VAT rates for these islands are 17% (standard rate) and 9% and 4% (reduced rates).

For the Greek Mainland and all other islands (with the exception of the abovementioned five islands), the VAT rates are 24%, 13% and 6% respectively.

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Amendment of the CTP relating to the deadline for the DRD to issue decisions on administrative recourses

A law (Law 4587/2018) approved by the Greek parliament modifies the rules in the Code of Tax Procedure (CTP) relating to the deadline for the Dispute Resolution Directorate (DRD) to issue a decision on an administrative recourse submitted by a taxpayer. Administrative recourse is a mandatory procedure for a taxpayer to initiate a dispute about a tax assessment or other action taken (or not taken) by the tax authorities.

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OECD releases discussion draft on transfer pricing of financial transactions

The Organisation for Economic Co-operation and Development (OECD) on 3 July released a non-consensus discussion draft on the transfer pricing aspects of financial transactions. This discussion draft is part of Actions 8-10 of the base erosion and profit shifting (BEPS) project, which began in 2013.

The 2015 final report on BEPS Actions 8-10 mandated follow-up work on this topic. Pursuant to that mandate, the discussion draft aims to clarify the application of the OECD transfer pricing guidelines (TPG) to financial transactions, in particular, the accurate delineation analysis under Chapter I.[1]  The discussion draft addresses debt-versus-equity determinations as well as specific issues related to financial transactions such as rates of return, intragroup loans, cash pooling, hedging, guarantees, and captive insurance companies.

The OECD has invited interested parties to submit comments on the discussion draft by 7 September 2018.

 

[1] All references to the OECD TPG are references to the 2017 version of the TPG.  

Clarifications issued on penalties imposed on late tax return filings 

The Governor of Greece’s Independent Public Revenue Authority (IPRA) issued Circular (POL.) 1119/18 to provide guidance on the filing of late tax returns for tax years ending before and on or after 1 January 2014 (1 January 2015 with regards to Gift and Inheritance Taxation), clarifying the provisions of two recent laws (L.4509/17 and L.4512/18) that amended the tax rules relating to interest and penalties.

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New Tax law

Structural tax reforms approved after new law ratified by the Greek Parliament

The Greek parliament ratified Law 4549/2018 on 14 June 2018. The law includes changes to the Income Tax Code, VAT Code and Tax Procedures Code. The most significant income tax and VAT changes are covered below.

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Pilot procedure launched for e-filing of administrative recourses and suspension requests

The governor of Greece’s Independent Public Revenue Authority (IPRA) issued a decision (POL.) 1076/2018 on April 23, 2018 that launches a six-month pilot procedure, under which taxpayers can e-file administrative recourse and/or suspension requests against final tax assessments issued by specified tax offices with the Dispute Resolution Directorate (DRD).

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New Development Law 4399/2016

Government announces second call for proposals on state aid schemes for mechanical equipment and new independent SMEs. On 29 March 2018, Greece’s Ministry of Economy and Development initiated the second call for proposals for the state aid schemes, “Mechanical Equipment” (Gazette 1271 Β’, 35979/29-3-2018) and “New Independent SMEs” (Gazette 1272 Β’, 35976/29-3-2018) under Law 4399/2016.

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Recent developments on tax audits

Greece’s Independent Public Revenue Authority (IPRA) issued an interpretative circular (POL. 1073/2018) on 17 April 2018 that provides guidance on relevant deadlines and other matters relating to the requirement that the tax authorities notify taxpayers of a tax audit before commencing audit activities. The circular follows the recent amendments to the Tax Procedure Code (TPC) made under L.4512/2018 that allow taxpayers to file a late original or amended tax return after being notified of an audit.

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New laws mitigate tax penalties 

Two new laws, L.4509/17, which generally applies from 1 January 2018, and L.4512/18 that was enacted on 15 January 2018—amend Greece’s Code of Tax Procedure with respect to interest and penalties imposed on tax assessments and taxes due with late submissions of tax returns.

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Indirect tax legislation – Recent developments

By virtue of Law 4509/2017 (Government Gazette A’ 210/22-12-2017), important changes have been introduced into the Greek VAT Code (Law 2859/2000).

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Supplementary guidance and clarification on the concept of income tax evasion crimes

Greece’s Director of Independent Public Revenue Authority issued a decision (POL) 1209/2017 that contains supplementary guidance and clarifications regarding the concept of tax evasion in income taxation.

 

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Deadline to participate in Voluntary Disclosure Program extended for a few more days – Circular issued by the Independent Public Revenue Authority

Greece’s Independent Public Revenue Authority issued a circular informing on a proposal submitted to the parliament, which extends for the third time the deadline for taxpayers to participate in the voluntary disclosure program (VDP).

 

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Deadline to participate in Voluntary Disclosure Program extended

The Greek parliament passed a law on 4 October 2017 that extends the deadline for taxpayers to participate in the Voluntary Disclosure Program (VDP) to 31 October 2017.

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OECD releases additional implementation guidance on CbC reporting and appropriate use of information in CbC reports

The OECD on 6 September released additional guidance on the implementation of the country-by-country (CbC) reporting requirement introduced in the BEPS Action 13 final report. In addition, the OECD released guidance on the appropriate use of information contained in CbC reports (CbCRs).

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Labour - Social Security News Changes made to Labour and Social Security Law

Law 4488/2017, passed on 7 September 2017, introduces significant changes to the Greek Labour and Social Security Law. The most important features of the new law are as follows:

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Employer Contribution for Special Account for Children's Camps

Several sets of guidance issued during the period 2014-2017 (e.g. Circulars 49/2013 and 63/2013 and General Documents of the EFKA (unified Social security body) E40/573 /17.7.2014, E40/586/5.8.2015, E40/627/2016 and 464/1156016/2017) contain instructions relating to the employer contribution of EUR 20 per employee for the Special Account for Children's Camp (E.L.P.K), a resource of the OAED's Single Account for the Implementation of Social Policies.

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OECD releases additional implementation guidance on CbC reporting

The OECD released recently additional guidance on the implementation of the country-by-country (CbC) reporting requirement introduced in the BEPS Action 13 final report.

This guidance consolidates and expands all of the additional implementation guidance issued by the OECD since the release of the Action 13 Report. Also included is the additional implementation guidance issued on: (i) 29 June 2016; (ii) 5 December 2016; and (iii) 6 April 2017.

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Greece implements Country-by-Country Reporting

The Greek Parliament on 28 July voted to approve the adoption of EU Directive 2016/881 regarding the mandatory automatic exchange of tax-related information into Greek legislation. This directive amends the previous Directive 2011/16, which had been incorporated into Greek law by L.4170/2013. The new law adds Article 9AA to L.4170/2013, which provides the scope and requirements for the compilation and filing of the country-by-country (CbC) report in Greece by multinational enterprises. The most significant provisions of the new law are outlined below.

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New classification criteria for scientific and technological research (R&D) expenditure

The modernization of the eligibility criteria for research and development (R&D) expenditure is an important step towards converging Greek tax rules with international standards. A new joint ministerial decision issued on 29 June 2017 (and published in the official gazette on 11 July 2017) replaces the decision that has applied since 1987, generally incorporating the OECD guidelines (Frascati manual). The new R&D classification criteria align the Greek tax legislation with other EU jurisdictions, enabling a common R&D classification approach for tax super deduction and thus eases the European perspective on the Common Consolidated Corporate Tax Base (CCCTB). The updated definitions and broadened criteria for eligible R&D expenditure apply as from fiscal year 2017.

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New Reverse Charge Mechanism Introduced and Other Recent Changes to VAT Rules

The Greek government enacted a law (Law 4484/2017) on 1 August 2017 that adopts the reverse charge mechanism found in article 199a of the EU VAT directive for certain domestic supplies of goods, reduces the VAT rate for certain goods and services, and makes other changes to the VAT code. Specific provisions of the new law and other recent changes to the VAT rules are discussed below.

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Legal Council of State opines on SAC decision involving extensions of statute of limitations for tax purposes

Greece’ s Legal Council of State, a body with consulting role for the State, recently issued its opinion in the case involving the constitutionality of laws that extended the statute of limitations (SOL) for the government to assess taxes, following the landmark decision of the Supreme Administrative Court (SAC) (Decision 1738/2017) published on 27 June 2017

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Guidance issued on M&A provisions of the Income Tax Code

Greece’s General Secretariat of Public Revenue issued Circular POL. 1057/2017 on 7 April 2017 to provide further guidance and clarifications regarding the application of the merger and acquisition (M&A) provisions of the Income Tax Code (“tax provisions”).

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Law 4472/2017: Recently enacted tax provisions

Greece’s parliament adopted a law (Law 4472/2017) on 19 May 2017 that makes changes to several tax laws, including the Income Tax Code (ITC), the Tax Procedures Code (TPC) and the Annual Real Estate Ownership Tax (AREO). The measures will affect both individuals and companies in Greece. In principle, amendments will become effective as of the date of publication in the Government Gazette (19 May 2017), unless specified otherwise.

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Extension in the e-filing of tonnage tax return for the 2017

Circular POL 1027/2017, provides for extension in the electronic filing (e-filing) of the tonnage tax return for the fiscal year 2017. More specifically the final date for the filing of the respective tax return is the 20th of March 2017.

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Guidance issued on e-filing of tonnage tax return

Circular POL 1022/2017, released on 21/2/2017, provides guidance on the electronic filing (e-filing) of the tonnage tax return as from fiscal year 2017.

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Changes made to tax litigation procedure

Law 4446/2016, published in Greece’s government gazette on 22 December 2016, introduces changes to the procedural rules applying to tax litigation. The new rules apply as from 22 December 2016 unless specified otherwise.

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Deductibility of foreign-source losses revised

Law 4446/2016, passed by Greece’s parliament on 21 December 2016, introduces several changes to the rules governing the deduction of foreign-source losses for Greek tax purposes. The new rules apply retroactively as from 1 January 2014.

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Voluntary Disclosure Program passed

The Greek parliament passed the long-awaited bill on the Voluntary Disclosure Program (VDP) on 21 December 2016.

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New calculation method for the taxable value of company cars

The Greek Parliament approved a law on 21 December 2016 that introduces significant changes to the rules governing the calculation of the taxable value of company cars used by employees, partners or shareholders.

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New rules requiring electronic rather than cash payments

The Greek parliament approved Law 4446 on 21 December 2016 that includes measures designed to encourage taxpayers to use electronic payment methods rather than cash.

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Recent Developments on VAT Law 4446/2016

By virtue of Law 4446/2016 (Government Gazette A’ 240/22-12-2016), important changes have been introduced to the Greek VAT Code (Law 2859/2000).

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Mutual agreement procedure introduced and changes made to tax treatment of Μ&Α transactions

Changes to Greece’s Tax Procedures Code and Income Tax Law were adopted by parliament on 24 November 2016 and published in the official gazette on 28 November (L. 4438/2016).

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Simplified procedure introduced for company incorporation

The Greek parliament approved a law on 29 November 2016 (Law 4441/2016) that includes the introduction of simplified procedures for the establishment of new companies.

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Draft bill for the voluntary disclosure of undeclared income

A draft bill including provisions on the voluntary disclosure of undeclared income has been submitted to Parliament. As soon as the bill becomes a law, we shall inform you about the details of the program, on the basis of the final text of the law.

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OECD issues additional guidance on CbC reporting

The OECD on June 29, 2016, issued additional guidance on the implementation of the country-by-country (CbC) reporting requirement introduced in the BEPS Action 13 Final Report issued on October 5, 2015.

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