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Double Tax Conventions
Greece recently submitted six double tax conventions with Canada, Saudi Arabia, Qatar, Serbia, Morocco and Azerbaijan to the Greek Parliament for ratification. Greece has also concluded a new double tax convention with Austria to avoid double taxation of income and capital. Taxand Greece identifies the main aspects of these tax conventions.
Substitution of former Double Taxation Convention with Austria
A new Convention for the Avoidance of Double Taxation of Income and Capital between Greece and Austria has entered into force. Its provisions will affect income or capital, generated or owned on, or after 1 January 2010. The said Convention had been ratified by the Greek Parliament (by means of Law 3724/2008) and substitutes the one previously in force (signed in 1970 and in force as from 1972).
There are several differences in the provisions of the revised Convention. Most importantly, withholding of tax on interest and royalties on the basis of source state domestic rates and tax refund system for excess withheld (i.e. exceeding Convention rate), all have been substituted by direct withholding at source state on the basis of Convention rates.
Six New Double Taxation Conventions
Six new Double Taxation Conventions have been submitted to the Greek Parliament at the beginning of December 2009 for ratification. Contracting foreign states are Canada, Saudi Arabia, Qatar, Serbia, Morocco and Azerbaijan.
Furthermore, on 18, January 2010 a new Double Taxation Convention was signed between Greece and the United Arab Emirates. The new Convention has not yet been submitted to Parliament for ratification.
Entering into new double tax conventions opens up new opportunities and improves the sharing of information between key jurisdictions and Greece which will benefit investors and taxpayers alike.
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