Tax Law

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New Unified Real Estate Tax (U.R.E.T. – ΕΝ.Φ.Ι.Α., Law 4223/2013)

From 2014 and for each year subsequent thereto, a new tax is levied on real estate property located in Greece, namely the Unified Real Estate Tax (U.R.E.T.) - ΕΝ.Φ.Ι.Α., upon introduction whereof the current Real Estate Tax (RET - ΦΑΠ) is abolished. U.R.E.T. is equal to the total sum of a) the main tax on each real estate plus b) an additional tax on the total value of each taxable person’s rights on real estate property, on which U.R.E.T. is levied. For assessment purposes, the actual condition of each real estate as evidenced by the definitive entry in the Cadastral Office’s records;...

11 Feb 2014

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Special lump sum contribution of Article 18 of Law 3758/2009

Through its judgment 1685/2013 the Plenary Session of the Supreme Administrative Court (Conseil d’ Etat) ruled, that Article 18 of Law 3758/2009, by virtue of which a special lump sum contribution was imposed on income earned in 2007, is not contrary to the Greek Constitution. The date of hearing of this case was scheduled in the first instance on a “preferential” basis, i.e. soon, in the context of the institution of the “model process”, in view of the fact that many similar recourses for the same issue had already been filed, so that the date of hearing of other similar cases,...

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

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

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

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

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

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