Greece: guidelines on taxation of dividends for 2013 published – details

June 21, 2013

On 7 June 2013, the Ministry of Finance published guidelines on the tax regime of dividends and other corporate income tax rules resulting from the enactment of Law 4110/2013:

  • The type and content of the tax return to be submitted for the withholding tax on dividends (in Annex of the Guidelines).
  • As during 2012 and 2013, for the time period from 1 January 2013 until the publication of Law 4141/2013 in the Official Journal (i.e., 5 April 2013) and before the adoption of new provisions, individuals that are tax residents in Greece may have already received dividends from abroad or special remunerations either directly from the foreign company or through its branch in Greece according to article 25 of Law 27/1975, to whom the 10% WHT was not paid as the relevant provision had not been adopted yet, the Guidelines clarify that these persons should pay the tax due (10%) until 14 August 2013, without any penalties, and that the payment of this tax any other tax obligation is extinguished. In case the payment takes place after 14 August 2013, penalties for late payment per month will be due.
    These penalties will be calculated from the month after the month of the payment of the relevant amount to the taxpayers, until the month that the tax due is paid. The above is also applicable for payments of dividends of past years which that have been paid to taxpayers for the above-mentioned period.
  • The tax due is paid once-off with submission of the special tax return which is in Annex of the Guidelines
  • Taxpayers should submit the following documents, along with the tax return:
    • Certificate from the foreign company or holding company that holds, directly or indirectly, the shares of the foreign companies that have an office or branch in Greece and that distribute dividends. This certificate should state the contact details of the taxpayer as shareholder or member of the foreign company, the date of payment of the amount of dividends and the exact amount paid
    • Copy of the license to establish an office or branch of the foreign company in Greece, pursuant to article 25 of Law 27/1975.
    • Certificate from the competent Greek tax office where the office or branch is registered, stating that the company has already paid the tax due according to article 43 of Law 4111/2013 as currently in force. This certificate is to be submitted until the expiry of these provisions, i.e., by the end of fiscal year 2016 (income of 2015).
    • Certificate from a financial institution of the taxpayer for the announcement of payment of dividends and the related amounts, if the dividends are imported into Greece. If dividends are paid and remain abroad, no such certificate is required. If dividends imported are exchanged in euros, the currency dollar-euro will need to be mentioned in the certificate of the financial institution as well. If dividends are paid abroad or in a foreign currency bank account in Greece, the currency value of the related amount in euros for the calculation of the tax due will be the value of the related currency according to the pricelist of the official website of the Bank of Greece.

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