DOING BUSINESS IN GREECE

Posted By Romain Ponsot on Oct 6, 1907 in Doing Business


Date de publication : 06-10-1907

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The following information are for the sole purpose  of providing a general overview of  the local taxation of the Corporate tax aspects of the country. In any case, it can not replace a tax advice, or be considered as an official information.

 

Yes we tax in Greece

 

Flash News

New tax reform:

  • Bill on country-by-country reporting submitted to parliament.
  • No deduction for VAT on bad debts

New tax treaties: No specific news regarding the tax treaties.

Local tax advisors

No specific information on the local tax advisors.

Local tax administration

Website Ministry of Finance (English version): Click here

Website Tax administration (greek version): Click here

VAT identification number within EU:

Permanent Establishment

Entities are considered to be resident for tax purposes in Greece if their place of management & control is in Greece.

However, the place of residence is subject to the relevant provisions of any applicable double tax treaty, if any.

Corporate Income Tax

The general CIT tax rate is 29%.

Non-taxable income includes the following:

  • Dividends (participation exemption)
  • Capital gains related to sale of unlisted shares are 95% exempt
  • Capital gains related to sale of listed shares are 100% exempt

Non-deductible expenses includes the following:

  • Dividends benefiting from the participation exemption
  • Fines and penalties of any kind
  • CIT and similar taxes

Carry forward : Yes 5 years, but some restrictions may apply

Carry back: No

Companies should submit the tax return annually.

Annual tax returns are established by the company on a self-assessment system.

Companies shall pay monthly advance payments.

Whithholding Taxes (payment to foreign companies)

The local tax rates in Greece are the following, subject to the provisions of an applicable double tax treaty, if any.

There is no WHT on the profits paid from a branch to its foreign head office

The general rate of WHT on dividends is 15%.

The general rate of WHT on interest is 15%.

The general rate of WHT on Royalties is 20%.

The general rate of WHT on management fees is 20%.

The general rate of WHT on technical services is 20%.

Capital gains

Capital gains are taxed as general income under the regular CIT.

Note: in certain cases capital gains are not taxable (i.e. sale of shares in resident companies).

VAT

Standard VAT tax rate is 24%

Reduced tax rates are:

  • 13% (among others, food, health protection, water and electricity sypply, hotel services, …)
  • 6% (among others, books, pharmaceuticals products, …)

Zero-rated supplies include, subject to certain conditions:

  • Import and supply of aircraft and vessels engaged in commercial international traffic.
  • Services connected with the transport of persons.

Exempt supplies include, subject to certain conditions:

  • Financial services. However, they are taxed to a special tax on banking activities.
  • Insurance services. However, they are subject to other taxes.
  • Postal services

EU taxable companies may claim a VAT refund to their own tax authorities through on the basis of the 13th EU Directive.

No other specific information of VAT in Greece.

Miscellaneous

The general statute of limitation is 5 years starting at the end of the year in which the tax return had to be filed.

The statute of limitation is extended to 20 years for tax evasion.

No specific information on the foreign exchange control in Greece.

There are thin capitalization rules in Greece. The interests derived from loans between related parties may not be deductible in case where interest exceeds some ratios.

 

 

 

Do not hesitate to share your experience in Greece with us in the comments below. Any comments are welcome !

 

Romain Ponsot

Romain est conseiller en fiscalité au sein d’un leader mondial du shipping. Grâce à son expertise tant en matière de TVA, fiscalité internationale, problématiques intragroupe qu’en matière de fiscalité des particuliers, Romain vous guidera au travers d’articles professionnels et humoristiques. 

Romain, poète dans l’âme, aime particulièrement le couscous et passe beaucoup de temps à glacer ses souliers. Profil LinkedIn
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