R&D expenses - The following categories of S&T expenditures do not qualify as eligible costs: fees, bonus fees, benefits, S&T related costs, fines, pecuniary sanctions, entertainment expenses, educating training, car leasing, commercial fairs...
Continue readingThe above eligible costs of scientific and technological research, as same are laid down in Joint Ministerial Decision 109343/I2/GG B 2351-11.07.2017, are classified as follows: Expenditure Categories: Remuneration of Salaried Personnel, Fees of Contracted Associates, Building Costs Amortizations, Depreciation of Costs of Intangible Assets purchase, Transportation Expenses, Cost of Purchase of Consumables, Other Expenses ...
Continue readingThe recent No. 109343/12/2017 Common Ministerial Decision of the Ministers of Education, Research and Religious Affairs and of Finance, for the determination of the criteria for the characterization of the expenses of scientific and technological research of enterprises under article 22A of the Income Taxation Code (L.4172 / 2013)....
Continue readingGreek law offers robust tax incentives to businesses involved in scientific and technological research....
Continue readingThe provisions of Article 49 of the Greek Income Tax Code (Law 4172/2013), as in force having been amended by the provisions of Article 23(4) of Law 4223/2013 and further amended by Article I(D)(D1)(12) of Law 4254/2014, introduced thin capitalisation rules to combat abuses. ...
Continue readingIn respect to the taxation on Management Board Member’s fees and dividends provided by a corporate body or legal person or legal entity with registered offices in the UK, the following apply: According to the new Income Tax Return Code (Law 4172/2013, from now on “ITRC”), the taxpayer that is a tax resident of Greece, is under the obligation to pay taxes based on his global income. A. Dividends taxation Income from dividends is considered a capital income (article 35 of ITRC) and is being taxed at a rate of 10% (article 40 par. 1 of ITRC). When a Greek national taxable natural person...
Continue readingThe 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...
Continue readingΤhe main taxes imposed on individuals The main types of taxation on individuals are income and capital taxes. Of course, there are also many other forms of indirect taxes, mainly on transactions and consumption. Income taxation is the most important tax that affects individuals. The two main categories of capital tax are tax on inheritance/gifts inter vivos/lottery gains and tax on the transfer of real property. In the present chapter we deal only with 1) income tax 2) tax on inheritance/gifts inter vivos/lottery gains; A. Income tax on individuals 1) Who is subject to income tax in Greece? Subject to income tax in Greece...
Continue readingA natural person is a tax resident of Greece, as long as: a) it has its permanent or main residence or habitual residence or the center of its vital interests, which is to say its personal or economical or social links in Greece...
Continue readingThe New Income Tax Code (Law 4172/2013 hereinafter “ITC”) introduced in Greek Tax legislation provisions pertinent to Controlled Foreign Corporation Rules (“CFCs rules”). Controlled Foreign Corporation are legal persons or legal entities which are tax residents in different countries with such links between them, leading to effective control of one company (“Foreign Company”) over the other (“Controlled Company”). The CFC rules are features of an income tax system designed to limit artificial deferral of tax by using offshore low taxed entities. Pursuant to Article 66 ITC, taxable income shall include the non-distributed income of a legal person or legal entity (which...
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