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Guidelines on withholding tax exemption
The Greek MOF has issued guidelines concerning what documentation Greek enterprises should submit to tax authorities for supporting dividends, interest & royalties paid to enterprises which are exempt from withholding tax. Taxand Greece provides an overview of the latest guidelines.
- Greek enterprises performing qualifying intra‐group payments are no longer required to submit a chartered auditor’s certificate, confirming that the conditions for tax exemption are met
- The foreign beneficiary should officially declare that it shall submit, upon request, to the Greek enterprise a certificate issued by the competent foreign tax authority, confirming that the conditions for the tax exemption are met
- The state of tax residence of the foreign beneficiary should be certified by the competent foreign tax authority on the basis of documentation set out in the Ministerial Decision at the time of filing of the nil withholding tax return
- The documentation set out in the Ministerial Decision should accompany each nil withholding tax return filed with the Greek tax authorities
Quality tax advice, globally
The guidelines apply to qualifying payments made from 1 January 2014 onwards. A transitional period for purposes of compliance with new filing obligations applies until 30 April 2015. Greek enterprises, that have already made qualifying payments, should file (or re‐file, as the case may be) nil withholding tax returns accompanied by the required documentation.