Greece: Guidance on deductibility of commitment fees paid to banks for provision of credit
Clarification of deductibility of commitment fees paid by taxpayers to banks for provision of credit
Guidance on deductibility of commitment fees paid to banks for provision of credit
Circular E.2046/2024 clarifies the deductibility of commitment fees paid by taxpayers to banks for the provision of credit:
- Commitment fees are not interest but are incidental and essential financing costs paid as compensation for the financial costs incurred by the bank for keeping the agreed credit available at all times.
- Whether commitment fees are deductible depends on whether they are incurred for the benefit of an enterprise or in the ordinary course of its business.
Read a July 2024 report prepared by the KPMG member firm in Greece
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