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Tax alerts

The latest updates on Greek legislation and regulation

 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.

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.  

OECD releases discussion draft on transfer pricing of financial transactions

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.

Read the Tax alert in Greek here

Clarifications issued on penalties imposed on late tax return filings

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.

Read the Tax alert in Greek here

New tax law

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).

Read the Tax alert in Greek here

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

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.

Read the Tax alert in Greek here

New Development Law 4399/2016

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.

Read the Tax alert in Greek here

Recent developments on tax audits

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.

Read the Tax alert in Greek here

New laws mitigate tax penalties

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).

Read the Tax alert in Greek here

Indirect tax legislation – Recent developments

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.

 

Read the Tax alert in Greek here

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

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 for a few more days – Circular issued by the Independent Public Revenue Authority

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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Deadline to participate in Voluntary Disclosure Program extended

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).

Read the update in Greek here

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

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

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.

Read the update in Greek here

 

Employer Contribution for Special Account for Children's Camps

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.

Read the update in Greek here

OECD releases additional implementation guidance on CbC reporting

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.

Read the Tax alert in Greek here

Greece implements Country-by-Country Reporting

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.

Read the update in Greek here

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

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.

Read the Tax alert in Greek here

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

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

Read the Tax alert in Greek here

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

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”).

Read the Tax alert in Greek here

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

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.

Read the Tax alert in Greek here

Law 4472/2017: Recently enacted tax provisions

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.

Read the Tax alert in Greek here

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

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.

Read the Tax alert in Greek here

Guidance issued on e-filing of tonnage tax return

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.

Read the Tax alert in Greek here

Changes made to tax litigation procedure

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.

Read the Tax alert in Greek here

Deductibility of foreign-source losses revised

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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Voluntary Disclosure Program passed

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.

Read the Tax alert in Greek here

New calculation method for the taxable value of company cars

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.

Read the Tax alert in Greek here

New rules requiring electronic rather than cash payments

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).

Read the Tax alert in Greek here

Recent Developments on VAT Law 4446/2016

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).

Read the Tax alert in Greek here

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

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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Simplified procedure introduced for company incorporation

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.

Read the Tax alert in Greek here

Draft bill for the voluntary disclosure of undeclared income

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.

Read the Tax alert in Greek here

OECD issues additional guidance on CbC reporting
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