Greece : new Income Tax Code – consultationJuly 29, 2013
It is reported that the Ministry of Finance has initiated public consultation on a bill aiming to substitute the currently applicable Income Tax Code.
The legislative process is still in its preliminary stages.
It is expected that the bill will enter into force on 1 January 2014.
The following aspects of the current code are expected to be changed:
- Definition of “tax residence”
- Definition of “permanent establishment”
- Rules on deductible expenses
- Thin capitalization rules
- Loss carryforward in case of change of control
- Capital gains tax rate
- Dividend participation exemption
The following aspects of the current code are expected to remain unchanged:
- Corporate income tax rate
- Personal income tax rates
- Dividend withholding tax rate
- Withholding tax exemptions per Parent–Subsidiary Directive (recast) (2011) and Interest and Royalties Directive (2003/49)
- Deductibility of payments to non-cooperative or preferential regimes
The following aspects are expected to be introduced:
- CFC rules
- Intragroup restructurings. carry on a commercial, industrial or agricultural activity
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