GREECE Law and Practice Contributed by: Fotodotis Malamas, Bernitsas
EU DAC 7 By way of Law 5047/2023, the Greek Parliament transposed Council Directive (EU) 2021/514, known as DAC 7, into Greek legislation. DAC 7 amends Council Directive 2011/16/EU on administrative co- operation in the field of taxation. The reporting obliga - tion introduced by Directive 2011/16/EU is extended under DAC 7 to: • Greek legal entities providing digital platforms to sellers for the provision of business activities and platform operators in the EU; • platform operators that are not incorporated, man - aged or permanently established or resident in the EU and that make available digital platforms to sellers for performing reportable activities in Greece; and • third parties upon request from the competent Greek authority (including platform managers, per - manent establishments of non-Greek legal entities or internet service providers, etc). The object of the reporting obligation is reportable sellers (RS), which are considered all users (wheth - er they are individuals or entities), registered at any moment during the reportable period on the digital platform and carrying out a relevant activity against paid or credited consideration. Specific sellers are excluded from the above obliga - tion (excluded sellers – ES). In the event of infringement of the foregoing obliga - tions, the competent authority may impose a fine in the range of EUR1,000 to EUR500,000. The total amount of the fine for late submission of the seller’s data may not exceed the threshold of EUR10,000 per reportable year. In cases of non-compliance with the obligation to submit the required information or non-cooperation during the audit, apart from the above fines and by way of joint decision, the Tax Administration may also decide to interrupt access to the non-compliant digital platforms.
porate income tax rate lower than 60% of the Greek rate. The tax consequences of transacting business with a resident of a non-cooperative jurisdiction or one with a preferential tax regime are as follows: • dividends received from a subsidiary located in a non-cooperative country do not qualify for benefits under the participation exemption; and • for the purposes of Greece’s controlled foreign company (CFC) rules, the undistributed income of a foreign legal entity will be considered as taxable income of a Greek resident that controls the foreign entity if, inter alia, the foreign entity is resident in a non-cooperative country or in a non-EU country that has a preferential tax regime. Multilateral Competency Agreements Greece has ratified the OECD Multilateral Competent Authority Agreement on Automatic Exchange of Finan - cial Account Information by way of Law 4428/2016 (the “Agreement”). In accordance with the Agree - ment, Greek financial institutions or Greek branches of international financial institutions are under an obliga - tion to report account information regarding interest, dividends, account balances and sale proceeds from financial assets to the Ministry of Finance, and to fol - low certain procedures, consistent with the reporting and due diligence procedures set out in the OECD Common Reporting Standard (CRS). Law 4378/2016 has already incorporated into domes - tic legislation Council Directive 2014/107 on the man - datory automatic exchange of account information between EU member state competent authorities. EU DAC 6 Law 4714/2020 transposed into national legislation the provisions of Directive (EU) 2017/1852 (DAC 6) on tax dispute resolution mechanisms in the EU. DAC 6 established a dedicated tax dispute resolution mechanism for the efficient resolution of cross-border tax disputes.
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