Greece: Tax provisions in new laws, shipping taxation developments

Recent tax developments in Greece

Recent tax developments in Greece

Article Posted date 16 December 2022

A new law—5000/2022 (FEK A' 226/09.12.2022)—includes the following tax provisions:

  • The possibility to be included in the value added tax (VAT) suspension regime for real estate extended to 31 December 2024
  • The reduced and super-reduced VAT rates for certain goods and services extended to 30 June 2023
  • Amendments to article 5A ITC relating to the alternative taxation of income arising abroad
  • The income tax reduction for building upgrade expenses extended to 31 December 2024
  • The capital gains tax suspension on the transfer of immovable property extended to 31 December 2024
  • Amendments in relation to the maximum duration of the appointment of certified auditors/audit firms

New Law 4994/2022 (Government Bulletin A’ 215/18.11.2022) also imposes a temporary special contribution obligation on electricity suppliers’ excess (windfall) revenues from activities in the domestic retail market of electrical energy during the period between 1 August 2022 and 1 July 2023.

Shipping taxation

An addendum introducing amendments to the “New Agreement between the Greek State and the Maritime Community” (February 2019)—ratified with retroactive effect to 1 January 2022—includes the following provisions:

  • The voluntary contribution rate applicable to dividend income received by shipping companies and imported into Greece is now 5% (instead of the previous 10%).
  • The voluntary contribution also applies to capital gains derived from the sale of shares of ship owning entities or holding companies of ship owning entities.
  • The voluntary contribution may also apply to non-signatory members of the maritime community (irrespective of whether they have signed the addendum or the agreement) assuming certain conditions are met.
  • The total annual minimum amount of the voluntary contribution to be paid by the members of the maritime community is set to €60 million (instead of the previous €40 million).

A new article 26d was also added in Law 27/1975 providing that, as of tax year 2023, time/voyage charterers that offer transportation services using equipped and staffed vessels of other companies, can be subject to the tonnage tax regime also for those vessels in parallel with the other ships that they are exploiting and which are either owned or bareboat chartered by them, assuming certain specific conditions are met. Namely, at least 25% of their total fleet should bear the flag of an EU/EEA member state or their time/voyage-chartered vessels that do not bear an EU/EEA flag should not exceed 75% of their owned or bareboat chartered vessels.

Read a December 2022 report [PDF 282 KB] prepared by the KPMG member firm in Greece

 

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