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Tax Law

Tax treatment of Belgian income received by a tax resident of Greece

A tax resident in Greece receives from a Belgian company:    a) dividend (as a shareholder) b) remuneration of a member of the Board of Directors Which is their tax treatment in Greece, taking into account the provisions of the relevant Treaties for the avoidance of double taxation (hereinafter “DTT”): a) With regard to the tax treatment of dividend income received by an individual, who is resident in Greece, from a legal entity established in Belgium, the following applies: According to article 10 (1) and (2) of the DTT between Greece and Belgium (Law 3407/2005), dividends paid by a Belgian company to a Greek...

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Tax treatment of dividend distributed by a foreign company to a Greek tax resident

(Independent Authority for Public Revenue (IARP) circular No 2018 of 28.1.2019) It follows from the combination of the provisions of the DTTs regarding the tax treatment of dividends, that the State of tax residency of the shareholder may tax the dividends arising in the other State, but must credit its own tax on such dividends, to the tax paid in the State in which the dividends arise, at the rate specified in the relevant provisions of the relevant DTT. However, some Double Tax Treaties include the article on elimination of double taxation provisions on the credit and on the corporate tax attributable...

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The “non-dom” tax regime: Alternative taxation of foreign-source income of individuals transferring their tax residence to Greece – Article 5A of the Greek Income Tax Code

Conditions for inclusion in the regime The provisions of article 5A of Law 4172/2013-Greek Income Tax Code (ITC) provide for an alternative tax regime, commonly known as the “non-dom regime”, according to which a taxpayer individual who transfers his or her tax residence to Greece can be taxed in an alternative manner for income generated abroad, in other words all income not generated in Greece, provided all the following conditions are met: a) he or she was not tax resident in Greece during 7 out of the previous 8 years prior to transfer of his or her tax residence to Greece, which...

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Taxation of dividends and bonuses from shipbroking and related companies

Following the amendments introduced with Law 5036/2023 regarding the taxation of dividends from shipbroking companies and related businesses as well as of the bonuses paid to the directors and personnel of these companies and of ship-management companies in Greece, the Greek Independent Authority for Public Revenue (IAPR) has issued Decision A. 1175/2023 which amends the former Decision A. 1223/2019 for the content of the relevant tax return for such income. In a nutshell: Dividends Dividends paid or credited, in accordance with the provisions of article 43 par. 5 of law, to an individual-Greek tax resident by: foreign companies of any type which have...

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Place of taxation for VAT purposes of services related to events

General rule for B2B services According to the provisions of Article 14 par. 2 a) of the VAT Code (Law 2859/2000), as in force from 01.01.2010, the supply of services to taxable persons acting as such is taxed, as a general rule, at the place of establishment of the recipient of the services (general B2B rule).   Admission to cultural, artistic, sporting, scientific, educational, entertainment and similar events granted to taxable persons. According to the provisions of Article 14 par. 8 of the VAT Code, as in force from 1.1.2011, admission to cultural, artistic, sporting, scientific, educational, entertainment and similar events which is...

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Appointment of Fiscal Representative for VAT purposes in Greece

Additional obligations for customs related obligations Acquisition of a Greek VAT number through the appointment of a Fiscal representative   The concept/requirement of a Fiscal Representative for VAT purposes The appointment of a Fiscal Representative for VAT purposes is provided by the Greek VAT legislation (Law 2859/2000-Greek VAT Code) and is actually a requirement (obligation) for cases where a company that is not established in Greece carries out activities in Greece that create VAT liabilities in Greece and for which the company must obtain a Greek VAT number in order to fulfil its compliance/reporting VAT obligations and pay the Greek VAT to the State. Among...

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Issuance of Greek tax number (AFM)

The Greek tax number (AFM) is a single and unique number assigned by the Tax Administration to an individual or legal person/legal entity, local or foreign, that is going to carry out business activities in Greece or become liable to pay tax or to submit any declaration in Greece [articles 10 and 11 of the Tax Procedure Code - Law 4987/2022]. The issuance of A.F.M. is carried out before the competent Tax Office online or in person.  Apart from the issuance of AFM, the issuance of personal tax codes (“kleidarithmos” in Greek) is required as well in order to receive access...

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Liability of directors of Greek companies for taxes and social security contributions

Α. tax obligations (Article 50 of Law 4987/2022) The individuals who are executive presidents, directors, general managers, administrators, managing directors, authorized to manage and liquidators of legal persons and legal entities, as well as the individuals who exercise the management or administration of a legal person or legal entity, are personally and jointly liable for the payment of income tax, withholding tax, any imputed tax, VAT and ENFIA, imposed to these legal persons and legal entities, regardless of the time of the tax assessment, as well as for interest, fines, surcharges and any administrative monetary sanctions imposed on them, as long...

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Greek tax treatment of interest payments made by a Greek company to a foreign lender company

According to the Greek tax legislation, any interest amount paid by a Greek company to an entity established abroad is subject to a withholding tax at a rate of 15%. The paid withholding tax exhausts the Greek tax liability in the event that the recipient of the above payment, which is subject to withholding tax, is a legal entity that does not have its tax residence and does not maintain a permanent establishment in Greece (par. 4 of article 37 and par. 3 of article 64 of Law 4172/2013, Circular POL.1042/2015). The above applies based on the domestic legislation and is...

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Brief overview of the Greek VAT regime

Main types of supplies subject to VAT in Greece The main types of supplies subject to VAT in Greece are, among others: a) the supply of goods and services carried out within Greece for consideration by a taxable person acting as such in the course of his business; b) the intra-Community acquisitions of goods in Greece for consideration by a taxable person acting in his capacity as such (or by a non-taxable legal entity on the condition that the supplier is subject to VAT in another EU Member State and the non-taxable acquirer has exceeded the IC threshold of Euro 10,000 annually). Especially,...

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