Recently, the Greek Finance Ministry announced new modifications to the tax regime in Greece. Herein below we present a summary of the as amendments which have been published (ΔΕΑΦ Α 1034297 ΕΞ 2016) by the Public Revenue Office on March 3rd, 2016.The document specifies the following:
• The provisions of Article 22 of n.4172 / 2013 specified that in determining the profits of a business, all expenses may be deducted subject to the provisions of Article 23 of the ITC, which further defines deductible expenses as those that:
- Correspond to the actual transaction and the value of the transaction is not considered inferior or superior to the market values, based on information available to the Tax Administration;
- Are recorded in the period in which they occur and are substantiated by adequate supporting documents.
• According to article 23 case C of the Tax Code, unpaid social security contributions do not constitute deductible expenses. • The paid social security contributions of natural persons who conduct a business through an individual enterprise and who are members of a personal or civil law company may be deducted from the gross revenue of their individual enterprise. • The paid social contributions of partners in limited liability companies (ΕΠΕ) or private companies (ΙΚΕ) are not deductible from the gross revenue. Nevertheless, when the partners receive remuneration and conduct business, their social security contributions are deductible from the gross revenue of their business.For more information please do not hesitate to contact our Athens office. Antonis Gavrielides E: antonis.gavrielides@eurofаst.eu T: +30 210 8257720