GREEK LAW DIGEST

201 Dryllerakis & Associates Law Firm implementation and interpretation of the Greek transfer pricing rules. Also, there are docu- mentation requirements for transactions with related parties which exceed specific thresh- olds. Such requirements include the preparation of a transfer pricing report and the sub- mission to tax authorities of a“brief table of information”. Non-compliance with the transfer pricing rules and/or failure to comply with the documentation requirements may result in severe penalties. Penalties may be also imposed in case of inadequacy or inaccuracy of the information provided. Taxpayers may enter into Advanced Pricing Agreements (APAs) with the Greek fiscal au- thorities for the pre-approval of the criteria applied for the determination of the prices of specific future cross-border intra-group transactions. Duration of said APAs may not exceed four years. Are there any special provisions for group tax relief? No, there aren’t any. Tax consolidation is not possible under Greek Tax Law. A Greek com- pany may not transfer losses to another affiliated company. Are there any Taxes upon incorporation or capital increase? Law 1676/1986 introduced a capital concentration tax of 1% on certain capital injections (merger of a company, capital increase). Such tax is no longer imposed upon the establish- ment of a new SA. A duty of 0.1% is payable on capital in favor of the Hellenic Competition Committee. Has Greece entered into Bilateral Treaties for the Avoidance of Double Taxation? Greece is a signatory party to 57 income tax treaties, whereas Greece has entered negotia- tions for the conclusion of such a treaty with Vietnam. According to the Greek Constitution, international treaties, such as treaties for the avoidance of double taxation, prevail over any other domestic legislation. Greece has also ratified treaties for the taxation of profits of shipping enterprises and air- lines with several countries. Some of them overlap with the applicable treaty for the avoid- ance of double taxation. Which are the main taxes on owning real estate? Unified Real Estate Tax (ENFIA) is levied on each real estate owned by SAs in Greece. The main tax is based on a sliding scale and its calculation is based on the objective tax value of the real estate, ranging for plots of land from € 0.0037 to 11.25 per sq.m. and for buildings from € 2.00 to 13.00 per sq.m. SAs are also subject to supplementary tax, which is calculated at the rate of 5.5‰ on the total value of their real estate. Exemptions that cover certain categories of real estate apply as well. Another special duty (TAP) is imposed annually in favor of the municipalities and is calcu- lated in most cases as 0.25‰up to 0.35‰ 7 of the value of real estate. 7. For municipalities that have entered into a consolidation program an increased TAP may be imposed with a rate up to 3‰.