In accordance with Law 4410/2016 (Government Gazette Ά 141/03-08-2016) annual Tax Certificates issued by Legal Auditors and Audit Firms are not any more mandatory from 2016 and onwards. Consequently, enterprises have now the option not to obtain it.
Annual Tax Certificates are issued upon an audit of the application by enterprises of tax provisions on tax subjects, in parallel with the statutory audit of the fiscal year. Subject to the issuance of Tax Certificates are Societes Anonymes (A.E.), Limited Liability Companies (E.P.E) and branches of foreign companies of which the financial accounts are obligatorily audited by registered auditors and audit firms at the public registry of the Law 3693/2008.
Enterprises which choose to obtain the annual Tax Certificate shall appoint every five (5) years another Legal Auditor or Audit Firm for its issuance. Infringements ascertained by the optional annual Tax Certificate may be taken into account by the Tax Authorities when the latter exercise their tax audit duties. However, enterprises which gain a Tax Certificate without remarks as to tax infringements are not exempted from an eventual tax audit by the Tax Authorities.
Inevitably, this new provision with regards to the optional Tax Certificate issuance in combination with the recent increase of the statutory audit exemption thresholds is expected to have an impact on the auditor’s and audit firms’ business whereas, on the other hand, enterprises feel relieved from a considerable cost. Last but not least, the optional issuance of a Tax Certificate has as a result, the abolition of penal provisions that were in effect in case of non-issuance of the Τax Certificate.
For further info please feel free to contact Mrs Maria Sarantopoulou , Tax & Legal Advisor at the Athens’ office of Eurofast Global Ltd, tel.: +30 210 8257720, email address: maria.sarantopoulou@eurofast.eu