A new tax bill submitted by the Greek MoF to public consultation on the 7th of July 2020, introduces significant changes in tax matters. Specifically:
New tax incentive regime for foreign pensioners transferring their tax residence to Greece
The proposed regime gives incentives to foreign pensioners to transfer their tax residence in Greece and be subject to a favorable taxation of their foreign income, with a tax rate of 7% for a period of 10 years and with exemption from the special solidarity contribution.
Exemption of free shares and vouchers for domestic tourism from income taxation
The income derived by an employee, shareholder etc. from the free granting of shares by the employer, is considered as a capital gain in case the shares are transferred and it is taxed at a rate of 15%.
Further, vouchers up to 300 euros for domestic tourism granted to employees are also exempted from income taxation for the tax year 2020.
Establishment of a Special Committee for the settlement of tax disputes
Tax disputes pending on 30 October 2020 before tax courts, concerning specific subject matters explicitly listed in the law, may be settled before a special committee to be established for that purpose. Upon settlement, assessed penalties will be discounted.
Further, important EU Directives against tax evasion/tax avoidance, etc. are incorporated in the Greek legislation.
Transposition of the EU Tax Dispute Resolution Directive
The aim of the Directive is to transpose at national level an effective and efficient dispute resolution process that will assist in the proper function of this mechanism within the EU market.
Transposition of DAC6, the EU Directive on the Mandatory Disclosure of Potentially Aggressive Cross-Border Tax Planning Arrangements
The deadline for the reporting of such arrangements, the first stage of which was consummated between 25 June 2018 and 30 June 2020, is set to expire on 28 February 2021. Proposed penalties range between Euro 5,000 and Euro 10,000 per reportable arrangement.
Transposition of exit taxation rules under EU Anti-Tax Avoidance Directive (“ATAD”)
The provision provides in detail the cases in which the taxpayer – legal person/entity - is subject to income tax in Greece for exits that have taken place since the 1st of January 2020.
Transposition of hybrid mismatches rules under EU ATAD
The proposed rules aim at ensuring that tax deductions or credits are carried out in one jurisdiction without resulting in double non-taxation.
VAT amendments to simplify supply chains etc. (EU Directive 2018/1910)
The new rules concern the simplification of VAT provisions in cases of call off stocks, chain transactions and intra-community supplies as well as the dealing with tax evasion in the field of trade taxation between EU member states.
You can download the Tax-i in pdf file here.