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Exemption from salary withholding tax obligation
The Greek Ministry of Finance issued guidelines in relation to the procedure for withholding taxes on employment income. Taxand Greece details the guidelines.
It is to be noted that according to the provisions of the Greek Income Tax Code, employers were under the obligation to withhold salary income tax on the value of benefits in kind granted to employees from 1 January 2015.
However, the guidelines clarify among others that:
- Due to the difficulties in determining the value of benefits in kind, in advance, they shall not be subject to withholding tax, as is generally the case for employment income. The corresponding income tax will be assessed at the level of the employee at the time of the tax clearance of the individual’s personal income tax return.
- In the event that tax has already been withheld on benefits in kind paid after 1 January 2015, such tax will be set off against the total income tax payable by the taxpayer for the relevant year (at the time of his tax return clearance).
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