GREECE Law and Practice Contributed by: Maria Zoupa, Daphne Cozonis, Ioanna Tapeinou and Diana Tsourapa, Zepos & Yannopoulos
Non-Deductible Expenses Categories of business expenses that are not deduct - ible are explicitly defined, and include, among others: • provisions (except specifically allowed bad debt provisions); • penalties and fines; • payments for goods or services exceeding EUR500 if not effected through banking transactions; • unpaid social security contributions; • payments to persons resident in the jurisdictions deemed non-cooperative or (other than, in princi - ple, EU and EEA jurisdictions) preferential, unless the taxpayer proves that there is no tax avoidance or evasion; and • expenses for which the supporting documentation has not been properly transmitted to the Independ - ent Authority for Public Revenue (AADE) through the myDATA platform. Income Recognition Basis As a general rule, the profits of businesses are taxed on an accruals basis. Any profits that are distributed or capitalised without having previously been taxed are subject to tax upon such distribution or capitalisation. 2.2 Technology Investments R&D Expenses Subject to a governmental procedure, a super- deduction of an additional 100% of certain expenses for scientific and technological research – including any depreciation of machinery and equipment used for those purposes – is available at the time such expenses are realised. Scientific and technological expenses paid to non-associated, registered start- ups and certain research and innovation centres and universities specified by law are tax deductible by an additional 150%. If they are incurred by micro, small and medium-sized enterprises, they are tax deduct - ible overall by an additional 200% on condition that they correspond to more than 20% of total expenses incurred in the same year; if, within a fiscal year, they exceed the average of the corresponding expenses for the two prior years, they are tax deductible by an additional 215%. Certain instruments and equipment used for scien - tific and technological research that are determined
through a governmental decision authorised by law can be amortised at a 40% rate annually. Patents Profits derived by a business from the sale of assets produced by deploying self-created patents interna - tionally recognised in its name – and from services provided with the use of its own patents – are exempt from corporate income tax for a period of up to three fiscal years from the year in which the relevant rev - enues were first accrued, while for the following seven years, there is a 10% exemption from the income tax payable on the company’s profits from the exploitation of the patent. The relevant profits are taxed when they are distributed or capitalised. 2.3 Special Incentives Green Incentives Incentives for sustainable development include super- deductions for expenses or increased depreciation related to environmental protection – ie, in relation to zero- or low-emission vehicles or public transporta - tion season tickets. Explicit deductibility for corporate income tax purposes of expenses related to corpo - rate social responsibility (CSR) activities has also been introduced as an incentive for sustainable develop - ment. Audio-Visual and Game Software Development EU-compliant tax incentives for investments in the pro - duction of films, videos and television programmes, in ancillary services, and in the development of source code for computer game software provide for a 30% deduction of eligible expenses incurred in Greece from the taxable income of Greek tax-resident legal persons and entities. The same incentives apply to businesses established in, or operating a branch with - in, Greece for the purpose of producing audiovisual works, including on a cross-border basis, as well as to foreign companies producing audiovisual works, provided that they contract with a company that is established in, or has a branch within, Greece and operates for the purpose of the full or partial produc - tion of audiovisual works. Creation of New Jobs Incentives for the creation of new full-time employ - ment jobs are also available and consist of a 50%
189 CHAMBERS.COM
Powered by FlippingBook