Special topics

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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...

26 Sep 2013

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Procedure of establishment in Greece of a foreign Limited Liability Company or Société Anonyme branch

in Company Law, Special topics

Pursuant to Articles 57 and 58 of Law 3190/55 on Limited Liability Companies and Articles 50, 50a and 50b of Law 2190/20 on Sociétés Anonymes, foreign Limited Liability Companies or Sociétés Anonymes may establish branches in Greece, following a decision of the Ministry of Commerce, Development and Competitiveness, provided that the companies are fully operating and have been incorporated in accordance with the laws of the country of their registration. In general, for establishing a branch of a foreign Limited Liability Company or Société Anonyme in Greece, the procedure to be followed is similar and is the following: A) First, a request...

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...

11 Apr 2013

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Remedies against actions of the Administration in relation to public procurement bids according L.3886/2010

in Public Procurement, Special topics

1) Preliminary claim under article 4 L.3886/2010 A Preliminary claim shall be filed in Police Headquarters within 10 days from the notification of the Administration’s illegal action or omission and with full justification of the presented arguments. The claim must indicate in detail, which law provisions and tender requirements have been violated and the exact reasons of this infringement. The content of the preliminary claim must be the same with the content of the application for interim measures, which means that our arguments must be exactly the same.) Timetable: Filing of claim: within 10 days from the notification of the Administration’s action. Decision of the...

20 Mar 2013

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Preliminary confirmation of taxes at 50% and method of payment