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Special one-time tax on 2008 profits of Greek corporate taxpayers

Greece

According to the provisions of a new draft bill that has been submitted to Parliament, a special, lump-sum, one-time tax (so called "special contribution") shall be imposed on the net income of enterprises for the fiscal year 2009 (profits arising from January 1 to December 31, 2008). Taxand Greece discuss the details on their latest tax alert.

The new tax involves corporate taxpayers with net income exceeding Euro 5 million. The tax will be based on the net income that had been reported in the respective income tax return provided that such income does exceed the amount of Euro 5,000,000.

Taxand's Take


No double counting & subsequent refund:
Taxpaying enterprises are entitled to a refund as long as the amount of net income, on the basis of which the tax was calculated, does incorporate the net income of other (subsidiary) enterprises, which have also been subject to such tax.

Challenging tax:
Our preliminary assessment is that this, lump-sum, one-time tax (special contribution) as provided in the draft bill does not violate any rules of the Greek constitution and consequently a related appeal would have rather limited chances of success.

Your Taxand contact for further queries is:
Spyros Maratos
T. +30 210 6967 000
E. s.maratos@zeya.com

Read the full tax alert from Taxand Greece here:

Taxand's Take Author