GREECE Law and Practice Contributed by: John C. Dryllerakis, John Papadakis and Nikos Kalantzis, Dryllerakis Law Firm
9. Dispute Prevention 9.1 Advance Pricing Agreements
9.2 Other Mechanisms Unlike many other OECD jurisdictions, Greece does not currently provide advance rulings on general tax matters. Tax certainty is therefore largely achieved through APAs and MAP procedures. However, this may soon change, as a draft tax bill has recently been submitted to public consultation introducing “Tax Binding Rulings” into the Greek Code of Tax Procedure. Under the proposed framework, taxpayers would be able to request, prior to carrying out a specific transaction or business arrangement, a binding interpretation from the Independent Authority for Public Revenue on the application of Greek tax and customs legislation. The ruling would be bind - ing on the tax administration, provided that the rel - evant facts and legal framework remain unchanged. The draft rules also envisage publication of rulings in anonymised form, potentially contributing to greater transparency and consistency in administrative prac - tice.
Greece has established an Advance Pricing Agree - ment (APA) procedure to provide businesses with certainty regarding transfer pricing and to prevent disputes and potential double taxation arising from cross-border transactions between related parties. For unilateral APAs, the process involves the taxpayer and the Greek Tax Administration. In contrast, bilat - eral or multilateral APAs involve consultation among the competent authorities of the relevant States; the taxpayer participates only indirectly and may accept or decline the APA. While unilateral APAs may provide transfer pricing certainty within Greece, they do not prevent poten - tial double taxation and are therefore generally less preferred. Nevertheless, in cases where no double taxation treaty exists with another jurisdiction, the Greek tax authorities may issue a unilateral APA upon request, provided it is appropriate and in the legiti - mate interest of the taxpayer. Importantly, a unilateral APA concluded by a taxpayer with another jurisdiction without the involvement of the Greek tax authorities is not binding on Greece.
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