Taxation News – Greek Income Tax Code

Taxation News – 12th Issue (June 2017)-Guidelines for the application of corporate restructurings under the Greek Income Tax Code


  • Shipping companies of Art. 25, L.27/1975, are exempted from both the insurance premium tax and business tax

The No 1028/2017 interpretative Circular issued by the Department of Indirect Taxation (Faculty
A’ VAT) states, inter alia, that they are exempted from premium tax (as established by Art. 29
para. 1, L.3429/2006, as amended and applicable), “the insurance policies concluded by foreign
or domestic shipping companies covered by L.27/1975, are subjective exemptions granted by
Art. 25 and 26 of this law to specific legal persons (private legal entities) and cannot be removed
by a subsequent general provision of law”.
Additionally, by the No 1031/2017 Interpretative Circular issued by the General Department of
the Faculty of the Application of Direct Taxation (Faculty C’-B’) the No. 324/2016 Opinion of the
First Regular Plenary Session of the Legal Council of State was notified, which decided by
majority that the offices or branches of foreign shipping companies settled in Greece under the
provisions of Art. 25 of L. 27/1975, are not subject to the business tax of Art. 31 of L. 3986/2011,
on the grounds that:
“…the provisions of Art. 25 paragraph 3 subparagraph first of L.27/1975, which provide
exemption from any tax, duty, contribution upon the income and are manifestly specific,
with regards to those established tax exemptions for shipping companies under the
regulatory control of the said law, because they are included in the, of major importance
for the general interest, basic special legislative shipping fiscal institutional framework
of the above law … and therefore supersede any subsequent contrary general tax law
provision, and any subsequent tax uniform in the subject to the income tax falls within,
as is the disputed tax under Art. 31 of L.3986/2011…”.

  • Guidelines for the application of corporate restructurings under the Greek Income Tax Code

On April 7, 2017 the Head of the Independent Authority of Public Revenues issued the No
1057/2017 Interpretative Circular, which provides the guidelines with respect to corporate
restructurings described in the Greek Income Tax Code. The main elements of the said Circular
are the following:

No 1057/2017 Circular clarifies the conditions for the implementation and the tax
benefits granted within the context of local restructurings (effected between local
entities) and cross-border restructurings (between local and EU entities), provided in
Art. 52-55 of the Greek Income Tax code, namely:

  • contribution of assets;
  • exchange of shares;
  • mergers and demergers;
  • transfer of the registered seat of a Societas Europaea to an EU member country.

b) The Ministerial Circular clarifies that the framework for the restructurings referred to in
Art. 52-55 of the Income Tax Code is equally implemented to companies having the
form of a Private Company,
c) It is officially confirmed that for local corporate restructurings the companies can opt in
between the provisions of Income Tax Code and either L.2166/1993 or legislative
decree 1297/1972, and
d) Moreover, it is expressed that for cross-border corporate restructurings, L.2578/1998
is still in force and apply in parallel with the provisions of the Income Tax Code

  • The shareholders of a foreign shipowning, managing and chartering company are exempted from the tax on the distribution of dividends
  • Recent developments to the tax legislation and to the case law


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