Greece : new Income Tax Code – consultation

July 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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