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July 2013

Tax Alert

New Income Tax Code (Law 4172/2013)

Summary of key points:
• The new Income Tax Code

introduces the notion of “place of
effective management” and
adopts the definition of
Permanent Establishment
according to the OECD
guidelines.
• There are four categories of
income i) employment and
pension income, ii) business
income, iii) capital income and
iv) capital gains.
• The tax year is identical with the
calendar year and there is no
provision for a tax year including
more than twelve months.
• Thin capitalization rules are
radically changed.
• A tax exemption upon receipt or
payment of intra-group dividends
may apply subject to conditions.
• Directive 2009/113/EC on the
common system of taxation
applicable to mergers, spin-offs,
transfer of assets and exchanges
of shares of companies of
different Member States is
transposed into the Greek Income
Tax Code.
• The term “affiliated entity” is
introduced with respect to
intercompany transactions.
• The provisions relating to the
disallowance of business
expenses paid to suppliers tax
resident in non-cooperative or
countries with a preferential tax
regime remain in force.
• Controlled Foreign Companies
(CFC) rules are adopted.
• Dividends, interest and royalties
are subject to a tax withholding
of 10%, 15% and 20%
respectively exhausting the tax
liability for individuals, while
income from real estate is taxed
according to a tax progressive
scale.
• The 5% tax on the real transfer
value of shares of non-listed
shares of domestic or foreign
corporations acquired until 31
December 2013 remains in force.

On 23 July 2013, Law 4172/2013 was published in the Government Gazette replacing the
Greek Income Tax Code. The new provisions are in principle applicable for income generated and expenses incurred for tax years starting as of 1st January 2014. The new provisions aim to significantly simplify and rationalize the current tax system. They relate to
individual and corporate taxation, while more specific provisions regarding their implementation will be included in the Tax Procedures Code, a separate piece of legislation to follow.
The new Income Tax Code takes into consideration the definitions and income characterization deriving from international tax law rules and includes provisions relating to cross
border transformations, as well as Controlled Foreign Companies (CFC) rules.
The main provisions are summarized as follows:
Individuals subject to income tax – foreign tax credit
• Individuals having their tax residency in Greece are subject to Greek income tax on their
worldwide income, whilst a foreign tax credit is provided on foreign income declared in
accordance with the OECD guidelines for the avoidance of double taxation.
• Foreign individuals employed by local law 89/1967 offices are subject to Greek income
tax only for their Greek source income.
• Individuals having their tax residency outside Greece are subject to Greek income tax on
their Greek source income earned during a given fiscal year. The new law provides a
detailed but indicative list of income sources deriving in Greece. Foreign income is
defined as any kind of income that is not classified under tax law as Greek source income.
Tax residency
The law introduces and clarifies the definition of “tax residency” as follows:
• Individuals: an individual is classified as a tax resident of Greece provided that: a) he
maintains in Greece his primary residence or habitual abode or the centre of his vital
interests or he is a consular or diplomatic employee or public servant working under a
similar regime or a public servant of Greek nationality working abroad or b) is physically
present in Greece for a period exceeding 183 days during a given 12-month period
consecutively or sporadically for the fiscal year, during which the above 12-month period
is completed.

07.July 2013 .2013.2013 to 31. while as of 1st January 2015 it is not allowed to maintain • special tax-free reserve accounts. • Luxury tax applies for income declared on tax returns filed for fiscal year 2013 onwards. • In any case.2012 the transfer pricing documentation file must be prepared and the summary information table should be submitted until August 16. they are taken into account when determining the place of effective management (such as.2013. • As of 23 July 2013. which are withheld by an insurance company in the course of group insurance policies (private pension schemes). or settlement agreement with the tax authorities or administrative court decision.12. • There is a provision for the taxation of non-distributed or capitalized reserves of legal entities. 5 and 6 of L. Permanent Establishment (PE) • The concept of PE is defined in accordance with the OECD guidelines. • The option of a tax year exceeding 12 months not provided for. Tax Alert .2013 are exempt from the final withholding income tax imposed on insurance indemnities. Legal persons or entities keeping doubleentry books may set their tax year to end on June 30th or at any other date following the tax year of their shareholder. the option to pay taxes in installments is abolished in case of finalization of the tax assessment due to non filing or late filing of an appeal. • The following categories of taxable income are defined: • Employment and pension income • Business income • Capital income • Capital gains • A different tax rate applies for each income category. The “effective place of management” concept should be reviewed on an ad hoc basis as per the factual background of each case. the provisions of the various Double Taxation Treaties ("DTTs") override the provisions of domestic law.2013 onwards is abolished. Taxable income categories • Taxable income is determined as income deriving after allowable deductions from the gross income. 2523/1997 in case of an administrative or court settlement are reduced to 1/3 or1/2 depending on the case. penalties under articles 4. • For the fiscal year ending on 31.12.8. which may under certain conditions give rise to PE. to this end. VAT on restaurant services is reduced to 13%. provided that 20% or 30% thereof is paid immediately while the residual amount is assessed in a lump sum until the last business day for the public sector of the same or the following month from when the administrative or court settlement takes place.8. whose participation in the domestic legal person entity exceeds 50%. 2 • Legal persons and legal entities . Tax year • The fiscal year coincides with the calendar year. indicative criteria are listed (such as the place where the annual General Meeting of shareholders / partners or the Board of Directors takes place) without however excluding additional factors that although they might not substantiate on their own the existence of tax residence in Greece.• The 20% taxation of capital gains from transfer of shares listed on the Athens Stock Exchange and acquired from 01. b) it has its registered office in Greece or c) the place of its effective management is in Greece at any time during the tax year. • For the period from 1. which is applicable in absence of any DTTs. is also provided for. 2013.a legal person or entity is considered to be a Greek tax resident in the following cases: a) it is incorporated or established under Greek law. the residence of the majority of shareholders or partners). • As of 1. • The provisions regarding the taxation of shipping businesses as well as related individuals for their income deriving there from remain in force. • A non-exhaustive list of examples.12. • It is clarified that these provisions do not apply to companies subject to tax under Law 27/1975 and Legislative Decree 2687/1953. • Accumulated capital reflecting insurance premiums of the employee paid until 31. foreign legal person or entity.

Income’s acquisition time • Income’s acquisition time is considered to be the time when the right to collect the income is acquired. Tax Alert . interest expenses can be carried forward in subsequent years. • The amount of net interest paid by a company is tax deductible up to 25% of the earnings before interest. • Exceptionally. • Credit institutions are excluded from these provisions. to the extent that it is indicated separately in the annual salary income statement granted to the beneficiary. consortia as well as legal entities. • The amount of redundant interest (interest on debt minus interest income) is now taken into account for the tax deductibility of interest rather than the equity and loans of the borrower as per the previous regime. joint stock or undisclosed companies to the extent they exercise a trade or business. Thin capitalization rules Thin capitalization rules are radically amended: • The new rules apply to all loans irrespective of their origin (intercompany or not. The new provisions apply for interest expenses realized in tax years beginning as of January 1st. • The corporate tax rate for legal persons and legal entities with double entry accounting books is 26%. banking etc). • All income of taxable legal persons is considered as business income. for companies that are not part of a group. • Subject to conditions. the time of acquisition of such income shall be the time of collection. • There is definition of tax exempt legal persons.July 2013 3 . the net interest is tax deductible if it does not exceed € 1. 2014 onwards.000 per year. for uncollected accrued income from employment and pensions that has been collected by the beneficiary at a later tax year. cooperatives and their unions.000. civil law societies. depreciation and amortization (EBITDA) after tax adjustments. domestic or foreign non-profit legal persons of public or private law. civil profit or non-profit companies. taxes. Corporate Income Tax Taxable and exempt legal persons & object of tax • Taxable persons are limited liability companies and partnerships established in Greece or abroad.

while the tax that has been withheld is offset against the corporate income tax liability. are not subject to withholding provided that the relevant requirements are met. spin-offs. • The same applies for payments of interest or royalties between affiliated companies pursuant to EU Directive 2003/49/EC. in any other case though. transfers of assets and exchanges of shares concerning companies of different Member States is transposed into the Greek Income Tax Code. Dividends distributed by a Greek tax resident legal person • Dividends (and other relevant payments) distributed to a legal person included in the EU Parent – Sub Directive’s Annex. If the 24 month holding period is not completed. • If the distributed profits to the parent company result from the participation of the subsidiary in another legal person. the distribution can be exempt of the withholding provided that the legal person deposits a bank guarantee of an amount that is set based on a specific calculation. Said provisions apply for payments realized as of January 1st. it would appear that the branch remittance tax is abolished. the guarantee may be forfeited. • The participation exemption on the basis of the EU Parent – Sub Directive applies to inbound dividends received by a legal person from any subsidiary irrespective of whether it is established in Greece or in an EU member state or a third country except in a non – cooperative country. The above provisions apply for dividends received as of January 1st. the expenses relating to said participation are not tax deductible. 2014 onwards. Profits credited or remitted abroad from a branch in Greece Pursuant to the new provisions. transfers of assets for shares and exchanges of shares EU Directive 2009/133/EC on the common system of taxation applicable to mergers. • If the legal person receiving the dividends does not participate by at least 10% for 24 months. 2014 onwards. • If the legal person distributes dividends to its parent company which has not completed the 24 month holding period of at least 10% participation but meets the rest of the requirements. the exemption is definitive and the guarantee expires.July 2013 . 4 Tax Alert . provided that the latter submits to the tax administration a guarantee equal to the amount that should have been paid if the exemption was not available. Points regarding mergers and spin-offs. it could temporarily benefit from the exemption. dividends are taxed pursuant to the general provisions.g. the participation percentage is less than 10%).Inbound dividends received by a Greek tax resident legal person • In case specific requirements are not met (e.

Depreciations • Depreciations performed from the owner of fixed assets and from the lessee.2014 onwards. whereas the concept of “financial leasing” is significantly widened for the purposes of this provision. the permanent establishment that is created in Greece is entitled to carry forward the losses of previous years of the company that transferred its office.e. • They correspond to an actual transaction. The above provisions apply to restructurings realized as of January 1st.July 2013 5 . in case of a financial leasing agreement are considered as tax deductible items. while it is not clear whether prior domestic restructuring laws still apply (i. • Depreciation is performed by applying a specific depreciation rate on the acquisition or construction cost per asset class of a business. 2014 onwards. These provisions apply for expenses related to tax years ending after 30.2014 .• The aforementioned provisions apply to restructurings among Greek tax resident companies (no cross . whose value is not considered less or more than the actual one. in case of transfer of the registered office of a European Company (SE) or European Cooperative Society (SCE). In addition. • The receiving entity is entitled to carry forward the losses of previous years of the transferring entity.1. which as per legal provision. The same applies in case of a share exchange. appears to be exempt from tax on the capital gains due to the merger or spin-off. who exchanges securities of the latter for securities in the receiving entity. Law 2166/1993. • The depreciation of each fixed asset begins the month following the one in which the asset is used or being put into service by the taxpayer. Law 1297/1972 and article 16 of Law 2515/1997). Tax Alert .border element). • Additional provisions are introduced compared to the current regime. are explicitly not considered as deductible for tax purposes: • They are made to the interest of the business or in the ordinary course of its business transactions. • They are recorded in the accounting books of the period in which they incur and are duly supported by proper documentation. subject to the same conditions that would have applied to the latter if the merger or spin-off had not taken place. as long as he holds both securities through a permanent establishment in Greece.6. in particular: • The foreign shareholder of the transferring entity. Deduction of business expenses Deduction of expenses is in principle allowed under the following conditions. with the exception of certain expenses. based on indirect audit methods (crosschecks). The relevant provision is effective for tax years ending from 1.

• The rules governing the deduction of losses (debit balance) resulting from the exchange of Greek government bonds under the PSI remain unchanged. in addition. in which they incurred. • Restrictions are introduced as regards formation of bad debt provisions for business’ shareholder or partner holding at least a 10% participation and for business’ subsidiaries with a minimum 10% participation.July 2013 . The relevant provision is effective for fiscal years ending from 1. A new rule is introduced. • Offsetting of losses incurred abroad against business profits derived domestically is not allowed. special rules for the deduction of bad debt provisions are introduced for banks.Valuation of inventory and semi-finished products A time limitation of minimum four years. according to the period of time that the relevant claim remains uncollectible and the amount thereof.2014 onwards. The aforementioned rules apply to provisions formed in tax years beginning on 1.1. in case of changes in ownership or voting rights exceeding 33% of their value or number. under which the right to carry forward tax losses ceases to apply.2014 onwards. is introduced in case of change of the method chosen by a business for valuation of its inventory and semi-finished products. with the exception of income arising in other European Union or European Economic Area Member States. Indirect method of profits’ determination Business income is determined based on indirect audit methods in case of certain infringements making audit verifications impossible or when the accounting books as well as other supporting documentation are not maintained or disclosed for inspection after two requests from the tax authorities. Tax losses carry forward • Tax losses may be carried forward to be offset against business profits for five consecutive tax years from the tax year. unless it may be proved that the transfer has not taken place for the purpose of tax avoidance or tax evasion. which is not exempted based on the applicable Double Tax Treaty concluded and implemented in Greece. 6 Tax Alert . leasing and factoring companies. as of the tax year of first use. The provisions of Law 2238/1994 apply for provisions of bad debts that have been formed in the tax years 2010 – 2013. Bad debts • Bad debt provisions and write-offs are deductible for income tax purposes at a rate defined on a case-by-case basis.1.

or iii) there is between them. dividends. estimated on the basis of total value or number. or equivalent profit participation rights or voting rights. either local or cross-border. Tax Alert . Controlled Foreign Companies (CFC) CFC rules are introduced for the first time in the Greek tax legislation with the aim to deal with tax avoidance of Greek companies through shifting revenues to subsidiaries in low tax jurisdictions. It is stated that in the case of an intercompany business restructuring.g. a business restructuring must be effected in accordance with the arm’s length principle. these rules provide for the inclusion in the taxable income of the Greek companies of undistributed “passive” income (e. Moreover.July 2013 7 . the concept of “business restructurings” is introduced. then such transfer should be performed at a price which shall be in compliance with the arm’s length principle. 2013. interest. royalties etc. ii) another person participates directly or indirectly in them in any of the aforementioned ways. the reallocation of risks and functions in the context of this restructuring should be performed in accordance with the arm’s length principle by taking into account other comparable cases. The term encompasses two persons whereby: i) the one of them holds directly or indirectly shares. Specifically. • Furthermore.Intercompany transactions • The new law defines the term “associated person”. which extends to legal persons. Basically.2012 the transfer pricing documentation file must be prepared and the summary information table should be submitted until August 16. parts or quotas in the other of at least 33%. regarding the documentation of intercompany transactions have been replaced in the new Code by a mere reference to the arm’s length rule governing transactions between associated persons. Non-cooperative countries and countries with a preferential tax regime The provisions relating to the disallowance of business expenses paid to suppliers’ tax resident in non-cooperative or countries with a preferential tax regime remain in force. Preparation of the transfer pricing documentation file and submission of the summary information table With regards to the fiscal year ending 31. • The old provisions.) of foreign subsidiaries under the conditions stipulated in the law. in which there is transferred goodwill or intangible assets or assigned their use. direct or indirect management dependence or control or the possibility for the one person to exercise decisive influence to the other or of a third person to do so in both of them. individuals and any other body of persons. The procedure for the documentation of such transactions will be included in the Tax Procedures Code.12.

000 threshold annually.1.Taxation of reserves • Non-distributed or non-capitalized reserves of companies as depicted in their last balance sheet before 1. • Accumulated capital reflecting insurance premiums of the employee paid until 31. • Salary in kind contains the following indicative examples: • 30% of the expenses recorded in the employer’s accounting books incurred for the granting of a company car to employees. as well as its shareholders or partners. the market value of benefits in kind received by an employee is included in his taxable salary income. • Effective 1st January 2014. as well as of its shareholders or partners • Effective 1st January 2015.2013 is exempt from the final withholding income tax imposed on insurance indemnities. it is not allowed to maintain special tax-free reserve accounts. • The currently applicable provision according to which withholding tax on salary income and pension income is reduced by 1. • Unemployment benefits paid by OAED to unemployed individuals are exempt from income tax. Income tax for individuals Salary income and pension income • The new law introduces a definition for salary and pension income according to which oral agreements for the provision of employment services are recognized for tax purposes as employment contracts by means of which the individual – employee earns taxable salary income.2014 deriving from profits that have not been subject to taxation according to an exemption as per Law 2238/1994 or circulars or decisions issued under this law. the above reserves are obligatorily set-off at the end of each tax year with losses of whichever nature of the last 5 years until exhaustion.July 2013 . provided that the other income of the taxpayer does not exceed the EUR 10. • Meal coupons of a value up to EUR 6 per workday are not considered as taxable salary income. • benefits in kind granted in the form of a loan provided to an employee or shareholder or partner in a partnership (prepayments of salaries exceeding the amount of 3 monthly salaries are considered to be a loan granted by the employer to the employee). • Insurance premiums paid on behalf of the employee in the course of group insurance policies are exempt from the calculation of total taxable salary income. in case of distribution or capitalization until 31st December 2013 are subject to tax at 15% exhausting the respective obligation of the company. are considered as taxable salary income of the employee having the right to use such company car for any period during a fiscal year. which are withheld by an insurance company in the course of group insurance policies (private pension schemes). provided that their total value exceeds EUR 300 per year.12. • rental payments for the employee or 3% of the objective value of a company owned home that is made available by the employer to the employee for housing purposes. • The new law attempts to introduce a general rule about the requirement to include in the employee’s taxable income (as a salary payment in kind) benefits in kind paid to the respective employee or to their relatives. 8 Tax Alert . unless they are distributed or capitalized in which case they are subject to taxation at 19% exhausting the tax liability of the company. In particular.5% remains in force.

• Finally.01 έως και 42. losses of the respective fiscal year or of previous fiscal years are not deducted from taxable income and cannot be carried forward for offsetting purposes. • The provisions of article 10 of law 2019/1992 with regard to expenses made as of 1. • In case of a difference between deemed income and real income of the taxpayer. provided that the taxpayer earns exclusively or mainly business income. Funds that have been taken into account for the purposes of covering the difference between real income and deemed income. are deducted from the capital that is accumulated from earlier years. Tax Alert . or purchase of company parts or securities.000.July 2013 9 .000 › 42.1994 are not applicable to cover the difference between actual income and deemed income. progressive scale applicable for salaried employees. it is clarified that the deemed income tax provisions of the new law are not applicable in the case of individuals who are representatives of foreign diplomatic missions or individuals employed by institutional organizations of the European Union or International Organizations who have been stationed in Greece according to an international treaty.1.Taxable income from salaries or pensions is subject to income tax according to the following tax scale: Taxable income (EUR) ≤25. provided that the taxpayer earns exclusively or mainly salary income and/ or pension income or b) according to the tax progressive scale applicable for business income.000 25.000 Tax rate (%) 22% 32% 42% Alternative ways to assess minimum income tax payable (“deemed income tax provisions”) • Under the new provisions the difference between deemed income and total actual income is subject to income tax: a) according to the tax. • The following are classified as deemed income under the provisions of the new law: acquisition of a single proprietorship or unlimited liability partnership or limited liability partnership or corporation or limited liability company or private corporation or society of civil law or joint venture. • It is confirmed that the deemed income provisions are not applicable in the case of a foreign tax resident who does not earn income from Greek sources.

The tax is withheld by the person paying the royalties. The free of charge grant of residence with surface up to 200 sq.000 › 50. exhausting any further tax liability for individuals. • Interest.July 2013 . deriving from the leasing or self-use or the free of charge grant of use of real estate.000 Rate (%) 26% 33% • Any fortune increase deriving from an illegal. exhausting any further tax liability for individuals. • Income from immovable property.m. • Royalties. subject to withholding tax at the rate of 20%. Income in kind is computed at market value whereas imputed income from self-use or free of charge grant of use is computed at 3% of the objective value of the real estate. depreciation and bad debt provisions taxed according to the following scale: Taxable income (€) ≤ 50. Interest deriving from Greek State’s bond loans and Treasury Bills acquired by individuals and interest deriving from bonds issued by the European Financial Stability Facility within the context of PSI are exempt. unjustified or unknown source or cause is considered as business profit subject to tax at 33%. is introduced as a distinct income category for individuals and includes: • Dividends. subject to withholding tax at the rate of 10%. is exempt. The tax is withheld by the person paying the dividends. subject to tax as per the following tax scale: Rents(euro) ≤12. 10 Tax Alert .000 Rate (%) 11% 33% The term income from immovable property has the meaning of income in cash or in kind. Income from capital Income from capital received either in cash or in kind. exhausting any further tax liability for individuals. for the purpose of being used as a primary residence. subject to withholding tax at the rate of 15%. to ascendants or descendants.000 ›12. The tax is withheld by the person paying the interest. The concept of dividends is extended in accordance with the OECD guidelines and includes all distributable profits irrespective of the legal form of the distributing entity.Business profit • Business profit is defined as the total revenues from business transactions after deduction on business expenses.

The law recognizes limited exceptions to the concept of transfer.1.July 2013 11 . whereas such loss can only be set off against profits deriving from transfer of real estate and transfer of securities. In the meantime. Income from capital gains Capital gain deriving from transfer of capital is taxed at the rate of 15% and refers to: • Capital gains from the transfer against consideration of real estate or part thereof or encumbrance on real estate or part thereof or holding attracting more than 50% of its value directly or indirectly from real estate. Tax Alert . The above categories of income are included in income from business activity of legal persons and legal entities and are taxed according to the relevant rates.2014 onwards. the sale of real estate as a result of voluntary or judicial auction. the transfer of a right related to building coefficient ratio.1. still applies. waiver of ownership or of other rights on real estate. habitation or other easement’s constitution. • Capital gains tax from the transfer of real estate is withheld by the Notary Public.2014. • The exemption of capital gains arising from the exchange of Greek State Bonds or corporate bonds guaranteed by the Greek State with other securities in the context of PSI remains in force. • The new provisions apply to capital gains from transfers of real estate and transfers of securities taking place from 1. of usufruct’s constitution. the tax withholding obligation applies for payments to be made from 1. Special provisions regarding capital gains from the transfer of real estate • Transfer of real estate has the meaning of transfer of ownership or bare ownership. The 20% taxation of capital gains from transfer of shares listed on the Athens Stock Exchange and acquired from 01.The above apply for income acquired in fiscal years commencing as of 1.2014 onwards. respectively. the 5% tax on the real transfer value of non-listed shares of domestic or foreign corporations acquired until 31 December 2013. expropriation of real estate.1. provided that the respective property has been retained for at least five years and no other transfer of real estate has been effected within the retention period.2013 onwards. The above does not apply to capital gains arising from corporate restructuring / transformations. whereas an exemption applies for capital gains up to Euro 25. and • Capital gains from the transfer of securities provided that such transfers are not classified as business activities.07.000. is abolished. • Loss deriving from the transfer of real estate and transfer of securities can be carried forward indefinitely.

July 2013 . The i) capital gain from a building constructed with expenses of the lessee and ii) capital gain from bare ownership of real estate are determined in a special manner. the value upon which the real estate transfer tax was calculated. their acquisition and transfer price derive from documentation issued by the intermediary broker or bank or documentation notified to Hellenic Exchanges S.A. including any expenses directly connected with the acquisition and sale of securities which are not added or deducted. as well as the documents and other information to accompany the submission. The purchase price is the lower price between the contractual price and the net equity (upon transfer) of the company that issues the shares. while hard copy submission is allowed in exceptional situations • A decision of the Minister of Finance will further regulate the manner. it is considered as nil. format and content of the income tax returns. • Capital gain has the meaning of the difference between the acquisition price paid and the transfer price received. • As a rule. the transfer price is the higher price between the contractual price and the net equity (upon transfer) of the company that issues the shares. iii) parts in partnerships. In case that the acquisition price cannot be calculated.95 0. 12 Tax Alert .66 0.61 Special provisions regarding capital gains from the transfer of securities • Capital gains deriving from the transfer of securities include: i) the transfer of the business as a going concern. respectively. iv) Greek State and corporate bonds. timing. As per listed shares. The acquisition price is considered to be the price as stated in the notarial deed or the actual purchase price as evidenced or. As per non-listed shares. The resulting capital gains are adjusted by applying an age coefficient determined as follows: Years of retention From 1 to 5 More than 5 and up to 10 More than 10 and up to 15 More than 15 and up to 20 More than 20 and up to 25 More than 25 Age coefficient 0. In case that the acquisition price cannot be calculated. in absence thereof.79 0. The transfer price is considered to be the consideration as stated in the notarial deed. individuals file their returns through electronic means. ii) shares in listed or non-listed companies.87 0.73 0. it is considered as nil. Greek Treasury Bills and v) derivatives of financial instruments which are listed indicatively.• Capital gain has the meaning of the difference between the acquisition price paid by the taxpayer and the deflated transfer price paid to him. Submission of tax returns • Income tax returns are filed in the period from 1st February to 30 June of the year following the tax year to which they relate.

as well as residence self-occupation.Income tax prepayment • For individuals. L. 4111/2013. duties and charges upon acceptance of the settlement. • Special provisions apply with respect to architects. L.2013 and relate to assessments and decisions issued after of 1. • For legal persons and entities. it is necessary to pay 1/5 of the assessed taxes. helicopters. 3190/1955 or special rules. Luxury tax The provisions for the application of luxury tax on the deemed income value of cars.8.2190/1920 or L. or settlement agreement with the tax authorities or administrative court decision and the tax due is paid in an lump sum until the last business day for the public sector of the month following the one when the assessment or signature of the settlement agreement took place. There are certain cases where a tax prepayment is not assessed on companies transformed or merged under the provisions of L. an amount of 55% of the tax due is assessed against the tax corresponding to the revenues from business activities of the current year. • The above provisions apply as of 1.D. 2166/1993. while for partnerships. the tax prepayment is 100%. non-profit legal persons of public or private law as well as joint ventures of partnerships the tax prepayment is 55%. 1297/1972. • No tax prepayment is assessed in case the amount to be assessed does not exceed € 30 or the tax return includes only income from salaries and pensions. • In case of a settlement agreement with the tax authorities or provisional tax audit.8.2013. engineers and lawyers. as opposed to the original entry into effect envisaged as of fiscal year 2014 according to article 44 of L. the tax prepayment equals to 80% of the tax corresponding to the revenues of the tax year for which the return is filed.July 2013 13 . gliders and swimming pools take effect for revenues declared on tax returns of fiscal year 2013 onwards. Tax assessment • The option to pay taxes in installments is now abolished in case of finalization of the tax assessment due to non filing or late filing of an appeal. airplanes. Tax Alert . For domestic as well as foreign banks operating in Greece through branches. as well as for distributed or capitalized profits of corporations exempt from taxation according to special law provisions.

: +30 210 288 6365 This document contains information in summary form and is therefore intended for general guidance only. • This provision applies for penalty assessments issued as of the publication of the Law. Neither EYGM Limited nor any other member of the global EY organization can accept any responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication. tax. • The provisions regarding the taxation of shipping businesses as well as related individuals for their income deriving there from remain in force. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. provided that 20% or 30% thereof is paid immediately while the residual amount is assessed in a lump sum until the last business day for the public sector of the same or the following month from when the administrative or court settlement takes place. Ernst & Young Global Limited. Reduction of VAT on restaurant services For the period from 1. 23 July 2013. business experience. In so doing. for our clients and for our communities. • The provisions of L. EY Greece Tel. consistency and an unwavering commitment to quality service . About EY EY is a global leader in assurance. So our 32.: +30 210 288 6363 Mary Michalopoulou Tax Partner.com. each of which is a separate legal entity. At EY. EY refers to the global organization and may refer to one or more of the member firms of Ernst & Young Global Limited. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. a UK company limited by guarantee.e.2013. i. 2778/1999 regarding the taxation of real estate investment companies remain in force. For more information about our organization. Tax Alert . © 2013 EY All Rights Reserved Other provisions • The provisions of L. 2523/1997 in case of an administrative or court settlement are reduced to 1/3 or 1/2 depending on the case. transaction and advisory services. does not provide services to clients. 5 and 6 of L. It is not intended to be a substitute for detailed research or the exercise of professional judgment. About EY’s Tax services Your business will only succeed if you build it on strong foundations and grow it in a sustainable way. we play a critical role in building a better working world for our people.wherever you are and whatever tax services you need For more information.Penalty reduction ΕΥ | Assurance | Tax | Transactions | Advisory • Penalties under articles 4. please contact: Stefanos Mitsios Head of Tax. we believe that managing your tax obligations responsibly and proactively can make a critical difference.8. VAT on restaurant services is reduced to 13%. please visit ey. 3371/2005 and L. EΥ Greece Tel.July 2013 .000 talented tax professionals in more than 140 countries give you technical knowledge. On any specific matter.12. 2992/2002 regarding the taxation of venture capital companies as well as venture capital funds remain in force.2013 to 31. reference should be made to the appropriate advisor.