Special topics

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Tax treatment of the tax paid abroadfor the tax years before the 1st of January 2014

Pursuant to Article 109 par. 4 and 5 of the previously in force Income Tax Code (Law.2238/1994 - hereinafter "ITC"), the tax paid in advance, the withholding tax and the tax which “demonstrably” paid abroad regarding the income obtained abroad, are considered to be deductable from the total due income tax amount (including the additional tax) in Greece. In no case, the tax paid abroad can be higher than the tax amount which is attributable to such income in Greece. To prove the amount of tax paid abroad, a certification of the state's competent Tax Authority in accordance with Double...

09 Oct 2015

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Due diligence for the acquisition of a Greek company

in Company Law, Special topics

The due diligence checklist below is a general (non-restrictive) list of issues that ought to be explored as part of the due diligence process. Certain points may need to be added depending on the area of business activity. Issues relevant exclusively to financial auditing have been omitted. Financials – Tax Obligations • Cash restrictions. Is cash restricted from use in any way? For example, the local bank may have issued a performance bond on behalf of the company, and has restricted a corresponding amount of the company’s cash. • Audit of compliance with tax obligations for all types of tax up to...

31 Jul 2015

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Granting of residence permit to owners of property in Greece

in Immigration Law, Special topics

Pursuant to the applicable legislation, a five-year residence permit may be granted to third country nationals who own property with minimum value of €250,000. Such a permit may be renewed and these persons may be accompanied by members of their family. The same applies to third country nationals having entered into timeshare for ten years minimum under Law 1652/1986 or a ten-year lease of hotel accommodation or furnished tourist residences in tourist accommodation complexes referred to in Article 8(2) of Law 4002/2011, the lease charges for which amount to €250,000 minimum. Please note that third country nationals shall be any person who...

29 Jul 2015

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Procedure – supporting documents required for transferring a Greek trademark

in Commercial Law, Special topics

To transfer a Greek trademark, the following supporting documents should be submitted to the Department for Trademarks of the Ministry of Economy, Infrastructure, Maritime Affairs and Tourism: (1) Private (or notarial) agreement signed by the contracting parties. Where the contracting parties are legal persons, the agreement should be signed by their legal representatives or other persons duly authorised to this effect. The signatures in a private agreement should be authenticated by a Citizens’ Service Centre (KEP) or a public authority. (2) Where the contracting parties are legal persons, the following should also be submitted:(a) for sociétés anonyme and limited liability companies, the...

29 Jul 2015

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“Permanent establishment” of foreign undertakings in Greece

According to Article 6 of the Income Taxation Code (hereinafter: "ITC" - Law 4172/2013), as in force, "Permanent establishment" means a specific place of business through which an undertaking carries out all or part of its operations. Moreover, according to the Explanatory Memorandum of the same Law, the concept of "permanent establishment" is used primarily to determine the jurisdiction entitled to impose taxation on the profits of an undertaking according to Articles 3 and 4 ITC, in line with the OECD (Organisation for Economic Cooperation and Development) model Conventions for the Avoidance of Double Taxation and all related guidelines. In particular, "permanent...

29 Jul 2015

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Procedure for VAT exemption for the delivery of goods

(Ministerial Circular POL 1167/2013) In accordance with Article 788 of Regulation (EEC) No 2454/93 laying down the provisions for the implementation of the Community Customs Code, the ‘exporter’ shall be considered to be the person on whose behalf the export declaration is made and who is the owner of the goods or has a similar right of disposal over them at the time when the declaration is accepted. The aforementioned “similar right of disposal over the goods” and consequently the completion of export formalities can be exercised and carried out by the seller established in Greece, provided there is sufficient evidence (contract,...

08 Jul 2015

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Update on tax administration and policy in Greece, July 2015

Quite surprisingly, after its election in January, the government did not seek to replace the General Secretary of Public Revenue, Mrs. Aikaterini Savvaidou, a reputable technocrat whose professional career is very distant from its philosophy. However, the fact that she stayed in office may not be a voluntary political decision; it is also due to the commitment of the previous government to establish a rigid political independency for this Secretariat, which for decades in the past had been subject to political intervention. A major (albeit anticipated) change was the appointment of a new deputy minister of finance, Mrs. Nadia Valavani...

26 Jun 2015

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Taxation of benefits in kind under Greek law

Applicable legal provisions A. New Greek Income Tax Code (Law 4172/2013, hereinafter the “ITC”)  Article 12 defines the meaning of the gross income received from salaried work and pensions and clarifies the income cases included.  Article 13 defines the meaning of the benefits in kind and their special types and states how their tax value determined.  Article 14 par.1 defines what is excluded when calculating income received from salaried work and pensions.  Article 60 par.1 defines the withholding tax rate which is applicable for the gross income received from salaried work and pensions. B. Circulars  No. 1219/06.10.2014 provides further details about the...

12 Jun 2015

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Vacation leave entitlement for salaried employees