03 Dec 2013

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Definition of a permanent establishment according to the new Greek Income Tax Code

By virtue of article 6 of the Greek Income Tax Code, as recently codified by law 4172/2013 (23.7.2013), a new definition of a permanent establishment is provided, as follows. Article 6 Permanent establishment: 1. “Permanent establishment” means the specific place of business through which the undertaking carries out business in whole or in part. 2. The term “permanent establishment” includes mostly: (a) an administration site, (b) a branch, (c) an office, (d) a plant, (e) a workshop, and (f) a mines, an oil or gas source, a quarry or any other place of natural resource mining. 3. The worksite or a construction or assembling project or supervision activities related thereto shall be considered...

23 Oct 2013

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Luxury taxes

Posted by Niki Plyta

in Tax Law, Special topics

There are two different luxury taxes at the moment in Greece, one established in 2010 (law 3833 "Special tax on luxury goods") and one established in 2013 (law 4111 "tax on luxury living"). "Special tax on luxury goods" is in fact a sales tax imposed at different percentages as follows: a) at a rate 10% to 40% for new cars above a certain purchase value. b) at a rate of 20% for aircrafts and helicopters for private use. c) at a rate of 10% for jewelry, watches and other products made of precious stones, metals and leather. d) at a rate of 10% for private...

22 Jul 2013

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Civil non-profit companies ; taxation and issue of record, tax treatment of donations

Posted by Niki Plyta

in Tax Law, Special topics

Civil for-profit or non-profit companies, by virtue of Article 2(1) of Presidential Decree 134/96 were added to Article 2(1) of the Code of Books and Records (CBR) and have all the obligations which persons engaged in trade or business have, i.e. they are treated as persons engaged in trade or business, even if they are non-profit. Non-profit entities keep books only for deliveries of goods or provision of services subject to VAT or income tax and issue the records expressly specified by the CBR. For all other income, the books that are kept and the records issued are not for tax...

12 Jul 2013

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Fundamental rules of taxation in Greek law

Posted by Niki Plyta

in Tax Law, Special topics

The fundamental rules of taxation in Greek law are contained A) in article 4 §§ 1 & 5 of the Greek Constitution which read as follows: 4§1 “Greeks are equal as against the Law”; 4 §5 “Greek citizens contribute without discrimination to public fees depending on their powers” B) in article 78 §§ 1 & 2 of the Greek Constitution: 1) No tax is imposed or collected without a formal law that sets the object of taxation, the income, the nature of property, the expenses or the transactions to which the tax relates to 2) Tax or other financial burden...

22 Apr 2013

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Securing the interests of the State in cases of tax evasion

Posted by Niki Plyta

in Tax Law, Special topics

Law 2523/1997, as amended by Law 3943/2011, including administrative and criminal sanctions relating to the tax legislation, sets out in Article 14 measures to secure the interests of the State in cases of tax evasion. In particular, par. 1 stipulates that where a competent tax authority identifies, on the basis of a special audit report, infringements of tax laws consisting in failure to pay to the State a total sum exceeding EUR one hundred and fifty thousand (€150,000.00) relating to VAT, as well as withholding and cascading taxes, duties and contributions, tax offices shall not issue certificates or attestations for executing...

15 Apr 2013

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Summary of changes on transfer pricing legislation by virtue of Law 4110/2013

Posted by Niki Plyta

in Tax Law, Special topics

By virtue of article 11 of law 4110/2013 the legal provisions relating to transfer pricing that were contained in article 39 & 39A of the Income Tax Code and the provisions of article 26 of Law 3728/2008 were merged. The latter provision is abolished and now the rules are all part of the Income Tax Code, and more specifically articles 39, 39A, 39B and 39C. The changes are (in summary) the following: - Introduction of the concept of thin capitalization in Greek Tax Law, as far as loans between affiliated entities are concerned. - It is now obligatory that companies maintain a file...

20 Mar 2013

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Preliminary confirmation of taxes at 50% and method of payment

Posted by Niki Plyta

in Tax Law, Special topics

Article 74(6) of the Income Tax Code stipulates that failing administrative resolution of the dispute and the lodging by the taxpayer of a timely appeal, the Head of the Tax Office shall immediately confirm 50% of the main disputed tax, additional tax and other taxes and duties confirmed with it. It is further established that the said amount shall be confirmed for payment upon lapse of the deadline for administrative settlement of the dispute and prior to referral of the appeal to the court, and is payable as a lump sum up until the last day of the month following confirmation....

20 Mar 2013

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Penalties in case of non-payment of confirmed debts

Posted by Niki Plyta

in Tax Law, Special topics

Article 25(1) of Law 1882/1990 as amended by law 3943/2011 provides the following: 1. A person who has failed to make payment at the tax or customs offices of any confirmed debts in favour of the State, public law legal entities, corporations and organisations of the general public sector for a period greater than four months shall be sentenced to imprisonment of: a) up to one year, where the total debt, however created, including all manner of interest or surcharges up to the date on which the debt table referred to in paragraph 5 was prepared, exceeds the amount of five thousand...

20 Mar 2013

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Option of settlement of debt to the State

Posted by Niki Plyta

in Tax Law, Special topics

Various provisions are established from time to time, which enable debtors to settle overdue debts to the State by repaying their debts in instalments, and be relieved from any surcharges due to overdue payment. The main law which sets out such facilities and is currently applied by tax offices is Law 2648/1998 (Articles 13 to 21 on repayment of overdue debts to the State in installments). Pursuant to the said provisions, debtors of overdue amounts payable to the State may be granted the option of repaying their debts in instalments past the statutory deadlines, provided that direct payment of the entire amount...

09 Mar 2013

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Taxpayer’s defense against tax assessment sheet

Posted by Niki Plyta

in Tax Law, Special topics

1. Appeal or Administrative resolution of dispute a. Appeal Under Article 66 of the Code of Administrative Procedure, an appeal regarding tax and customs disputes is generally exercised within thirty (30) days of its statutory serving to the person concerned or in any other case of him being shown to be fully aware of its content. b. Proposal to resolve an administrative dispute and / or lodge an appeal under Article 70 of the Income Tax Code. The debtor, against whom the sheet is issued, if he doubts its correctness, may also request, beyond the appeal against it, the administrative resolution of the dispute...

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