GREECE Law and Practice Contributed by: John C. Dryllerakis, John Papadakis and Nikos Kalantzis, Dryllerakis Law Firm
Imputed Income and Deemed Income In addition to conventional forms of income, Greece taxes certain types of imputed or deemed income, calculated on a presumptive rather than an actual basis. Key examples have been outlined below. • Notional rental income from real estate ownership: Owners of real property may be deemed to earn rental income even if the property is not actually rented out. This notional income is calculated using statutory coefficients based on property type, location and size and is included in the individual’s taxable income. • Benefits from the use of company-owned assets: Employees or executives may be taxed on the value of private use of company cars, housing, or other assets, which is treated as a non-cash benefit in kind. The valuation of such benefits is determined by fixed rules and included in taxable income. • Other deemed income categories: In addition to actual income earned by individuals, Greek tax law provides for the taxation of income based on deemed income or “living standards rules” (Arti - cles 31–33 of the Income Tax Code). These rules constitute an indirect method of estimating income, allowing the Greek tax authorities to tax an individ - ual’s ability to maintain a certain standard of living, even if the actual declared income is insufficient or does not fully reflect economic capacity. This system allows the Greek tax authorities to cap - ture economic benefits arising from ownership or use of assets, even when no direct revenue is real - ised. Unlike the OECD Model, which generally taxes income based on actual receipts or accruals, Greece’s imputed income rules extend the tax base to cover notional or presumed income, effectively broadening the scope of taxable income. 4. OECD/G20 Global Tax Reform 4.1 Pillar One – Amount B As of now, Greece has not formally adopted Amount B of the OECD/G20 Two–Pillar Solution into its domes - tic law or published any official domestic legislative measures implementing it. The Greek transfer pric -
ing framework, as set out in its Income Tax Code and administrative practice, continues to follow the traditional arm’s length principle, as reflected in the OECD Transfer Pricing Guidelines and domestic statu - tory rules, without a specific Amount B provision in national legislation. The Greek transfer pricing regime is generally aligned with the OECD Transfer Pricing Guidelines and the arm’s–length principle and the Greek tax authorities require documentation consistent with the OECD three–tiered approach (master file, local file and coun - try–by–country reporting). However, no domestic safe harbour, simplified pricing matrix, or Amount B rule has yet been implemented. Under the current practice, Greece applies traditional transfer pricing methods to related–party transac - tions and any reference to OECD guidance (including Amount B) is interpretative and incorporated by refer - ence rather than directly legislated. If Greece decides to implement Amount B in the future, any domestic rules would need to be enacted through legislation or regulation and could potentially include local adaptations, as jurisdictions have discre - tion in how to integrate the simplified approach into their domestic transfer pricing systems. 4.2 Pillar One – Amount A Greece, as a member of the OECD/G20 Inclusive Framework on BEPS, has been engaged in interna - tional tax reform discussions, but it has not yet for - mally adopted or implemented Pillar One Amount A into its domestic legal regime and there is no official Greek government statement specifically articulating a national “position” on Amount A separate from its participation in the Inclusive Framework. Greece’s international tax policy has instead prioritised imple - mentation of Pillar Two (global minimum tax) and other BEPS instruments, consistent with its obligations as an EU Member State. 4.3 Pillar Two Greece has implemented the global minimum tax under Pillar Two, primarily by transposing the EU Global Min - imum Tax Directive (Council Directive 2022/2523) into domestic law through Law 5100/2024. This implemen -
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