Greece: Legislation incorporating ATAD measures for reverse hybrid instruments
Legislation incorporating ATAD II rules for elimination of mismatches arising from treatment of “reverse” hybrid instruments
Legislation incorporating ATAD measures for reverse hybrid instruments
New Law 4949/2022 added new paragraphs 10 and 11 in article 66B of the Greek income tax law—incorporating the rules under Council Directive (EU) 2017/952 (29 May 2017), known as Anti-Tax Avoidance Directive II (ATAD II), for the elimination of mismatches arising from the treatment of “reverse” hybrid instruments.
Background
ATAD II introduced mechanisms for eliminating mismatches that arise from the application of “hybrid” financial instruments, which are due to the different treatment and the interaction of different taxation systems applicable for legal entities as well as for tax transparent entities in the different member states.
The provisions of ATAD II for hybrid financial instruments became effective 1 January 2020 and were incorporated into Greek tax law with the introduction of article 66B of the Greek Income Tax Code by virtue of law 4714/2020.
In accordance with the relevant provisions of article 1 par.5 of ATAD II, the rules for the elimination of mismatches arising from the treatment of “reverse” hybrid instruments were to become effective for tax years starting from 1 January 2022, and those rules were recently incorporated into Greek tax law by virtue of the new law 4949/2022.
Read a July 2022 report [PDF 168 KB] prepared by the KPMG member firm in Greece
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