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Taxation in the transfer of shares listed in the Athens Stock Exchange

Iason Skouzos - TaxLaw > Practice Areas  > Tax Law  > Taxation in the transfer of shares listed in the Athens Stock Exchange

Taxation in the transfer of shares listed in the Athens Stock Exchange

According to Law No. 2579/1998, article 9, paragraph 2, as amended by Law No. 3296/2004, article 12 and Law 3943/2011, article 16,  transfers of shares that are listed in the Athens Stock Exchange are taxed at 0.2 per cent. This tax is calculated on the value of the shares transferred as it appears on the tag issued by the intermediating brokerage firm. The tax burdens the buyer of the shares, individual or corporate entity, unions or trusts, regardless of their residence, origin or place of residence or domicile and even if they are exempt from the payment of other taxes or duties by virtue of other provisions.

According to Law No. 2703/1999, article 27, paragraph 2, the same applies to transfers of shares listed in a recognised foreign stock exchange (according to lists compiled by the Ministry of Economics, all major stock exchanges are included) realised by individuals residing in Greece, Greek companies or companies that have a permanent establishment in Greece. The tax due is calculated at the value of the transfer appearing in the relevant transfer documents and is payable by the seller at the tax office to which the latter is registered.

By virtue of Law No. 3697/2008, gains realised after 1 January 2009 through the sale of shares listed in the Athens Stock Exchange or any other recognised foreign stock exchange or equivalent institution are taxed at 10 per cent. This tax substitutes the transaction tax described above. To that end, according to Law No. 3697/2008, article 21, the tax on the transfer is abolished for transactions that take place on or after 1 January 2009.

Law No. 3842/2010 amended paragraph 3 of article 38 of the Income Tax Code for profits on the sale of shares that are acquired after 1 January 2011. Such profits shall not be subject to income tax if the shares are held for a minimum of 12 months. If the profit is generated through the sale of shares held for three months or less, it is taxed at 20 per cent. If the profit is generated through the sale of shares held for a period between three to 12 months, it is taxed at 10 per cent. The same tax applies on individuals or corporations with differences in relation to how the tax is withheld and declared. The same Law outlined the different ways of determining how the profit is calculated in complicated portfolios.

Recently, by virtue of article 16 of law 3943/2011 (which amends again article 38 of the Income Tax Code), it is stipulated that profits made by businesses or individual traders from the sale of shares listed in the Stock Exchange, which shares are acquired after 1 January 2012 shall be taxed according to the general provisions (as ordinary business profits). This date has been further shifted to 1 April 2012, according to the decision n. 1006/2012 of the Ministry of Economics.

Finally, according to article 322 par.7 of Law 4072/2012, the provisions of article 9 par.2 of Law 2579/1998 and of article 27 par. 2 of Law 2703/1999,  are still applicable in the case of transaction of shares that are listed in the Athens Stock Exchange or in any other foreign recognized Stock Exchange and that have been acquired until the December 31st, 2012. Any shares acquired as from January 1st , 2013, will be taxed according to article 38 par. 3 and 4 of Income Tax Code (i.e. according to the general tax provisions).

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