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Greek Tax Updates Will Interest Multinationals
Law 4141/2013 extends the scope of application of the new rules on tax depreciation to cover all assets held by a company, irrespective of their date of acquisition. It should be noted that upon introduction of the new tax depreciation regime, the scope of application is restricted to assets acquired on or after 1 January 2013. Law 4141/2013 also clarifies that the annual rate of depreciation of intangibles under the new regime is 10%.
Changes in investment tax incentives
The recently voted Law 4146/2013 brought several changes in investment Laws 3299/2004 and 3908/2011, which provide investment incentives, including tax exemptions. The new law allows, under certain conditions, the formation of higher tax-free reserves in relation to investments qualifying under the law. Also, an extension is granted with regard to the number of years during which the investor is entitled to draw part of the taxable profits into a tax-free reserve account.
Income tax on captial gains arising from transfers of shares
Law 4141/2013 clarifies that the 20% capital gains tax introduced by virtue of Law 4110/2013, applies only on transfers of non-listed shares of Greek and foreign companies acquired after 1 July 2013. Transfers of shares acquired up to 30 June 2013 remain subject to the previous regime of 5% share transfer tax. Law 4141/2013 allows for the penalty free payment of appropriate taxes on share transfers that have taken place between 23 January 2013 and 5 April 2013. This is provided that relevant taxes are paid until 5 May 2013.
Discover more: Tax legislation updates in Greece
The Greek Government is gradually updating more and more tax legislation in the hope of driving more revenue for the country while making it a good jurisdiction for businesses to operate. Multinationals should keep afresh of all these tax changes in order to adapt their tax planning strategies as necessary.