© 2020 KPMG Advisors Single Member S.A., a Greek Societe Anonyme and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. the benefit in kind in the form of shares, provided to an employee or partner or shareholder by a legal entity, regardless of whether the employment relationship continues, if such shares are acquired upon exercise and are only transferred after 24 or 36 months (under certain conditions) following their acquisition date. The five-year statute of limitation period, during which the Greek State is entitled to impose taxes and penalties/interest, may be extended by one more year, in case the Greek tax authorities obtain new evidence during the fifth year of the respective statute-of-limitation period. Click anywhere on the bar, to resend verification email. This provision is in force upon publication of this law. Capital gains arising from the transfer of shares as of 1 July 2020 is exempt from income tax provided that certain conditions are met, e.g. The above provisions are applicable to expenses incurred in tax years after 1 January 2020 and until 31 December 2022. It is clarified that only the excess amount of EUR 300 (which now serves as a tax free limit) is considered as benefit in kind. Reserves formed according to the provisions of L. 2238/1994 may also be capitalized subject to 5% special tax (which exhausts any further tax liability, including dividend tax and solidarity contribution as a result of a distribution), without the right however, to offset any tax already remitted in the past for these reserves. Independent Authority for Public Relations (IAPR). %PDF-1.7 %���� The maximum income tax rate in Greece of 45.00% ranks Greece as one of the ten highest taxed countries in the world. The Personal Income Tax Rate in Greece stands at 44 percent.

The Income tax rates and personal allowances in Greece are updated annually with new tax tables published for Resident and Non-resident taxpayers. The deadline for the filing of inheritance tax returns shall be nine (9) months from the time of death (instead of six (6) months as applicable until now); while no further extension of such deadline is provided (i.e. Furthermore, the statute-of-limitation period is extended to ten years, in cases of non-filing, as well as in cases where the Greek tax authorities obtain new evidence following the expiration of the ordinary five-year statute-of-limitation period. By exception, any loss from the transfer of the aforementioned shares is recognized for tax purposes, provided that shares’ valuation takes place by 31 December 2019 and is recorded in the accounting books or presented in the financial statements approved by the statutory auditors and provided that the loss is realized by 31 December 2022. We want to ensure that you are kept up to date with any changes and as such would ask that you take a moment to review the changes. {{vm.newUser4}}. �:/��������r2'��B�� The above provisions are applicable to income earned during the tax years after 1 January 2020. The right to deduct the input VAT related to respective construction expenses is also suspended. Companies are allowed to an increased by 30% deduction of the following expenses: purchase of monthly or annual travel cards for public transportation means; leasing of zero or low (up to 50 g CO2/km) emissions company cars with PTRP up to EUR 40 000; purchase, installation and operation of publicly available charging stations for zero or low (up to 50 g CO2/Km) emissions vehicles. Generally, a tax credit is subtracted from your gross income before your taxable income is calculated. The uncollected accrued salaries collected as of 2014 onwards are subject to tax based on the year to which they correspond. Personal Income Tax Rate in Greece averaged 42.98 percent from 1995 until 2020, reaching an all time high of 45 percent in 1996 and a record low of 40 percent in 2002. The above provisions are in force from the bill’s publication date. Business expenses associated with these participations are not deductible for corporate income tax purposes.

The required categories of investments, their retention period in Greece, the application process as well as any other details required for the implementation of respective provisions shall be determined amongst other by ministerial decisions. Nevertheless, the exemption from income tax and donation tax available for the benefit arising from the waiver of debt (in full or partially) towards credit and financial institutions or companies servicing NPLs in the context of an out-of-court settlement or by way of executing a judicial decision according to the provisions of article 62 of L.4389/2016, still applies. The tax authorities shall be entitled to request from administrators of sharing economy digital platforms any information or evidence related to taxpayers transacting through such platforms as sellers.