Greece Country Profile taxation trade issues

Greece

TAXES - ACCOUNTING

Corporate tax

Tax rate for resident companies	25%

Tax rate on long-term capital gains	The tax rate on capital gains is 29%.

System governing groups of companies and dividends paid by subsidiaries to their parent companies	Dividends paid to non-resident companies: No withdraw at the source, even if a fiscal agreement doesn't exist. Dividends paid to resident companies: No withdraw at the source and tax exemption on the income of the shareholder.

Tax rate on branches	Branches are subject to general corporate taxation rules.

Income tax

Fiscal year

The fiscal year begins on January 1st and ends on December 31 of the same year.

Income tax rate

Greece individual income tax rate (2006):

In euros	Rate
0 - 11.100	0%
11.100 - 13.000	15%
13.001 - 23000	30%
23001 and more	40%

The married taxpayers are subjected to a separated levy.
Non residents pay a surcharge of 5% when their incomes exceed 10.000 euros. The EU. residents are exempted of the surcharge if more than 90% of their incomes are of Greek source.

Tax deductions or other allowances

In Greece, deductions concern Greek residents. There are several types of deductions subjected to some limits and to some conditions.
For example:
Medical and hospitalization expenses.
Social Security taxes.
Loan interests for the purchase of the main home.
Donations to charitable organizations.
Deductions give rights to deductions or tax credits.

VAT rates

Standard rates	19%

Reduced rates	A 4.5% rate applies to books and newspapers. A 9% rate applies to food, agricultural products and medical materials. Exports are zero-rated. Fees of lawyers and land registrars are exempted.

Other important taxes

Name of tax	Rate
Large real estate tax	0.7% from 243 600 EUR.
Tax on the transfers of properties in return for remuneration (built or not built)	9% on the value of the urban property good until 15 000 EUR then 11% beyond; 7% on the value of the rural property good until 15 000EUR, then 9% beyond (plus a local rise from 0.25 to 0.35% of the tax in every case.
Tax on the succession and donation	0 to 60% (with an income tax franchising of about 15% of the amount of the mutant assets.

Accounting

Obligations and publications
Companies have to produce each year a financial statement including a balance sheet, a profit and loss account, a table of distribution of profits and an appendix. It must be audited, addressed to the limited companies register and published in the official gazette of the government.

Certification and auditing
The external control of accounts must be given to a body of auditors chosen by the company.

Professionals and representative organizations
The Greek institute of approved auditors (SOE: Soma Orkoton Elekton) is the official body of the auditing profession, it includes 420 members.

Useful links

Greek Tax Administration
General Accounting Office

Last modified in January 2007