GREECE Law and Practice Contributed by: Anastasia Dritsa, Elisabeth Eleftheriades, Vicky Kriketou, Irene Kyriakides, Ioanna Kyriazi, Victoria Mertikopoulou, Claire Pavlou and Panagiotis Pothos, Kyriakides Georgopoulos Law Firm
Digital Business Greece provides a broad set of tax incentives that may be relevant to digital businesses. Expenditure on scientific and technological research, including depreciation of relevant equipment and instruments, is deductible with an additional 100% uplift. Following amendments introduced by Law 5162/2024 (applica - ble from FY 2025), this enhanced deduction rises to 150% for eligible research costs linked to collabora - tions with entities registered in the National Startup Registry, accredited research centres, and universities that are independent from the recipient of the ser - vices, as well as for depreciation of research-related equipment. In certain cases, SMEs may benefit from an increased deduction of up to 215%. Furthermore, GITC establishes a “Patent Box” regime, which allows, subject to specific conditions, tax exemption for income generated from self-developed, internationally recognised patents. Greece also offers a favourable regime for angel investors, providing income tax relief for certified investments in qualify - ing start-ups. Corporate Transformations Corporate reorganisations, including mergers, demergers, transformations, spin-offs, and contribu - tions of assets, are governed by two parallel legislative frameworks. From a corporate law perspective, Law 4601/2019 provides a comprehensive framework reg - ulating all forms of corporate transformations. From a tax law perspective, rules have recently been intro - duced to consolidate and modernise the tax provi - sions and incentives applicable to corporate reorgani - sations (Articles 47–59 of Law 5162/2024), replacing the previously fragmented framework under Laws 1297/1972, 2166/1993, 2778/1998, and 4172/2013. At the same time, the incentive regime introduced by Law 4935/2022 – primarily aimed at micro, small, and medium-sized enterprises (SMEs) – remains in force. In addition, the special restructuring framework applicable to credit institutions under Law 2515/1997 continues to apply. Special Regime of Law 89/1967 Under Law 89/1967, a favourable regime is available to foreign companies operating in Greece that pro - vide specific services to their parent companies, affili -
ated entities, or other non-Greek businesses, includ - ing consultancy, accounting support, quality control, planning, marketing, data processing, and similar activities. In essence, such entities are required to determine their gross revenues on a cost-plus basis, calculated by adding a pre-approved profit margin to total operating expenses and tax-allowable depre - ciation, excluding income tax, following an audit or review by the competent Committee. The profit mar - gin is set by a committee appointed by the Minister of Development and Investments and is reassessed every five years, subject to significant changes in mar - ket conditions. 5.4 Tax Consolidation No response was provided in this jurisdiction. 5.5 Thin Capitalisation Rules and Other Limitations Interest deductibility in Greece is limited under the thin capitalisation (interest limitation) rules set out in GITC. Under these provisions, net interest expenses are generally deductible up to 30% of EBITDA (calculated on a tax basis). Any amount exceeding this threshold is not deductible in the relevant tax year. However, dis - allowed net interest expenses can be carried forward indefinitely and deducted in future tax years. An exemption applies where net interest expenses do not exceed EUR3 million, in which case the limitation does not apply. In addition, certain entities – such as credit institutions, insurance and reinsurance compa - nies, and pension institutions – are excluded from the In Greece, transfer pricing is mainly regulated under the GITC, supplemented by administrative guidance from the Independent Authority for Public Revenue (IAPR). In addition, the Tax Procedure Code sets out the framework governing tax audits as well as the documentation and procedural requirements appli - cable to transfer pricing compliance. Furthermore, the OECD Transfer Pricing Guidelines are recognised and applicable in Greece as an inter - pretative framework for applying the relevant legal provisions. In particular, the GITC stipulates that the scope of these rules. 5.6 Transfer Pricing
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