News › Weekly Alert Article
New Amends to Greek Legislation
Since the new unity government was formed in June 2012, Greece has been reviewing and amending different areas of its legislation in order to put positive processes in place after the bailout. Taxand Greece summarises two important developments in recent legisation amendments.
New EU Regulation on administrative cooperation in the field of excise duties
Adoption of the new EU Regulation has been considered necessary in light of the recent introduction of a computerised Excise Movement and Control System (EMCS), aiming to improve and expedite the exchange of information between Member States regarding excise duties. To this end, pursuant to the new EU Regulation, all requests and procedures for mutual assistance shall, from now on, be included in the computerised system EMCS.
Greek-source royalties payable to Hungary, Czech Republic and Finland
Recent legislation addresses the withholding tax treatment of Greek-source royalties payable to tax residents of Hungary, Finland or the Czech Republic. In particular, it clarifies that the wording of the relevant DTCs does not restrict the source State's right to impose withholding tax on outbound royalties on the basis of domestic legislation. The said treatment applies with respect to specific types of royalty payments, namely payments received as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work. This is in deviation of the OECD Model Tax Convention, which either eliminates or restricts the source State's right to impose withholding tax on outbound royalties.
The Greek government is developing legislation which was previously left unreviewed. Multinationals should note that the government is analysing tax law in all industries, and therefore an upheaval in how foreign companies are taxed should be expected.