Taxes in Greece, Taxation in Greece, Taxes system in Greece
1st Tax on company CIT
All the operators, having a Greek residence tax, pay income tax on all income, regardless of where they are achieving. By contrast, non-residents in Greece are taxed only on income earned in that country. Are also subject to tax foreign companies if they have an area of Greece the permanent establishment or a branch.
2nd Progressive PIT
The Greek tax system, the taxation of income derived by individuals according to a progressive scale. The tax rate increases with the size of income.
Greek entity who is resident is taxable on all performance PIT income, regardless of where they are achieving. By contrast, non-residents in Greece are taxed only in respect of income derived in that country including the agreements on avoidance of double taxation / Agreement of 20 November 1987 signed between the Government of the Polish People's Republic and the Government of the Hellenic Republic for the avoidance of double taxation with respect to taxes on income and property, signed in Athens (OJ of 1991 No. 120, item. 524; hereinafter concluded). /
Subject to income tax in excess of the so-called. the amount of tax-free.
For workers employed under contracts of employment and income for pensioners, this amount is 12 thousand. Euro
0 -12 thousand. Euro Tax is 0%
1912 to 1930 thousand. euro tax is 27%
1930 to 1975 thousand. Euro Tax is 37%
Over 75 thousand. Euro Tax is 40%
Income of individuals under the other titles are exempt from tax up to 10.5 thousand. euro.
0 - 10.5 thousand. euro tax is 0%
10.5 - 12 thousand. Euro Tax is 15%
1912 to 1930 thousand. euro tax is 27%
1930 to 1975 thousand. Euro Tax is 37%
Over 75 thousand. Euro Tax is 40%
3rd Tax Settlement
From 1 April 2005 the basic rate of VAT on goods and services in Greece is 19 percent. The reduced rate of 4.5 percent. includes newspapers, magazines, books and theater tickets, and the rate of 9 percent. applies to goods and services deemed essential to life, such as fresh food products, medicines, electricity, transport services, some services.
All these VAT rates to be cut by 30 percent., Where the goods or services are provided to taxpayers on the islands of the Dodecanese and other Aegean islands.
4th Which provides for a deduction of the Greek tax system
For the reliefs and deductions in Greece are generally only entitled to the tax residents of that country. Non-residents can count on such an exemption, but only on condition that they are residents of one of the countries of the European Union and that their income at least 90 percent. comes from sources located in Greece. Which deductions can benefit those working in Greece?
In Greek law there are two categories of tax deductions
A / deduction from taxable income
B / tax deduction from the amount to be paid
To deduct from taxable income includes, among others: the insurance premiums on the life and death and on disability for the taxpayer, spouse and children - the amount of the deduction can not exceed 1.1 thousand. Euro
compulsory social security contributions, the amount of money transferred to the state, municipalities, churches, monasteries, universities, spas, archaeological fund, charitable institutions, as well as the full value of medical equipment transferred to the State or sanatoriums, the exemption in the amount of 1.9 thousand . euro for the taxpayer and the handicapped person who lives with him (on a scale of disability / disability - over 67 percent.) tax deducted at source or paid in advance for next year, the maintenance of children (a deduction from taxable income is: for one child - 1 thous. euros for two children - two thousand. euro for the three children - 10 thousand. euro, and the fourth child deduction amount is increased by a further one thousand. euro).
However, to deduct from the amount of tax to be paid are: 15 percent. annual rent apartment rented by the taxpayer and his family, but not more than 1.1 thousand. Euro (those who have paid the rent by the company are not entitled to this deduction), 15 percent. annual rent for the accommodation of studying children in Greece taxpayer (not more than 1.1 thousand. euro), 20 percent. annual expenditure on education (including language learning) to the taxpayer or his children (not more than 1.1 thousand. euro), 20 percent. the total annual cost for treatment and his family taxable (deductible maksymalne not exceed six thousand. euros); percent in 1915. interest paid by the taxpayer from the mortgage loan granted by banks for mortgage or other credit institutions; 15 percent. interest paid by the taxpayer from the credit granted by banks or other credit institutions on the renovation, maintenance and modernization of buildings or premises; purchase durable consumer goods to the amount of three thousand. euro.
Income, which generally is not taxable in Greece, are known. business expenses (eg costs of renting the car in order to travel for business, the cost of hotel accommodation during business trips, the costs associated with participation in conferences or workshops, etc.).
Greek legislation provides for a large number of tax deductions. However, the trend for changes in the tax legislation is directed toward the reduction of tax rates at the expense of reducing the number of tax credits.
As tax-based business in Greece
Entrepreneurs who are tax resident in Greece are subject to income tax on legal persons on all their income in this country, regardless of where their achievement. Non-residents in Greece, accounting for only the Greek income.
Entities (limited liability company - EPE, joint stock companies - EA and SA, and joint-ventures) resident in Greece, are subject to income tax (CIT) revenues derived from whole, irrespective of their achievement. In turn, non-residents in Greece are taxed only on income earned in that country. Resident is a person whose place of management or registered office in Greece. - Taxable well as foreign companies if they keep on Greek territory a permanent establishment or branch, in relation to revenues of these companies or branches.
5th How to settle TAX LOSSES
Tax losses can deduct taxable income derived by the taxpayer for 5 consecutive years of their activities, without reducing the amount of the settlement in one year. The Greek tax law does not give taxpayers a tax loss accountability back.
Interest is included in the cost of tax at the time of their calculation, and not the actual payment. In addition, branches of foreign companies may include operating expenses allocated by foreign headquarters. Such costs can not exceed 5 percent, however. general administrative expenses incurred by the branch in Greece.
The payment of dividends by the Greek companies are paid from taxable income, and no further tax, or at company level or at the shareholder level is not collected from them. - Dividends received from foreign companies generally are subject to withholding tax at the standard rate of 20 percent .. This tax is then deducted from the tax arising from the annual accounts. According to the Polish - Greek contract tax levied on interest and royalties can not exceed 10 percent.
Greece transposed the EU directive on the common system of taxation of parent companies and subsidiaries of different EU member states. Under the new provisions, the Greek parent companies are entitled to the tax credit in the amount of withholding tax paid by its subsidiary established in another Member State of the European Community, provided that the amount of credit shall not exceed the Greek tax payable on such income. The same possibility is entitled, in respect of the profits distributed by subsidiaries to the next level of relationship capital (the company - granddaughter), under certain legal conditions.
Parent companies and subsidiaries may not be combined profits and losses within its established group of companies. All companies are taxed separately.
- Under Greek tax law is also possible to use the so-called. indirect tax credit. Companies receiving dividends from companies with capital from other Member States (subsidiaries directly and indirectly) may deduct, under certain conditions, the tax paid by those companies rozdystrybuowanego income in the form of dividends - following our interlocutor.
Profits from the sale of shares of listed companies engaged in the full accounts (that is all Greek public limited companies and limited liability companies and foreign branches of other major actors) are exempt from tax, provided that these profits are allocated to the special reserve, which can be used only deductions for future losses from the sale or revaluation of debt securities. This reserve is taxed if the distribution or be subject to conversion to equity. Losses in excess of this reserve can not be accounted for as a deduction from taxable income, but should be transferred to the next period and offset against future profits gained from the sale of shares.
6th Greek Tax Refund
Polish entrepreneur who made purchases in Greece in connection with the operations of his business may seek to recover VAT Greek. However, this applies only to entrepreneurs who have no residence in Greece or a permanent place of business and not engage in taxable activities in Greece. The application for reimbursement requires filling a special form, "015" provided by the Greek tax authorities. Limits of 200 euros - the minimum amount of VAT for the period of 3 months or longer. 25 euro - the minimum amount of VAT for the period of annual or shorter than 3 months Applications should be directed to: Hellenic Republic Ministry of Finance Directorate Genaral Directorate for Taxation 14 - VAT Sina 2-4 GR-10672 Athens, Greece
7th Submission of evidence
Individuals working in Greece must submit an annual tax return to the right of residence in terms of revenue office. The obligation to submit annual returns in Greece is 1 March following the tax year, but in the case of income paid in the form of wages or salaries date is set for 2 May. When a Polish worker in Greece, will be leaving before the end of the tax year must submit an annual tax return before you leave, and then appoint a representative, who on his behalf to pay taxes.
8th Advances tax and special taxes
Taxable net income of companies engaged in building construction and sale of apartments, houses, etc. is 15% of their gross income (calculated by a special method of tax legislation). Other activities of construction companies is taxed at 10%, 12% or 25% of contracted gross revenue depending on the nature of the contract or type of customer service. Tax on estimated profit of 35% or 40% depending on the legal form of the construction business (described above). Ww. taxes are paid in advance from the payments made by the client for a construction company in the amount of 3% of the monthly payments. These advances are included in the final annual tax returns.
Revenues from the performance of technical objects.
Foreign entities and natural persons not resident in performing technical facilities are taxed on gross receipts. Tax rates are respectively 4% for public sector facilities, 4.8% for private sector buildings where the contractor uses its own materials, or 10% if you do not use their own materials. Tax Advances shall be deducted from each payment to the contractor.
Royalties paid to companies or individuals not residing permanently in Greece are taxed down payments of 20% or 10% depending on the nature of royalties (fees), unless the agreement on avoidance of double taxation otherwise. Advances are not levied on residents of Greece.
For the more famous of the transaction or the documents on which stamp duty is levied, are:
bills (up to 0.6% of value)
rental property (3.6% of transaction)
commercial loans (2.4%)
Private Loan Agreement (2.4 to 3.6%)
Excise duty is imposed on some imported and domestic products, which include certain agricultural products, alcohol, tobacco, fuels derived from petrochemicals, automobiles. Excise duties ranged from 10 to 75% and can not be imposed from the base of the CIF price or the retail price. Excise duty on cars in some cases may be up to 200% of the CIF price.
Automobiles, trucks and motorcycles are subject to an annual road tax, whose size depends on engine capacity.
Property sales tax
Levy a tax on change of ownership of the property. Is calculated from the price of the property stated in the contract or the market price, determined by the tax authorities if the contract price shall be lower than. Generally, this tax is 9% from the first 12 000 of the transaction value and 11% of the amount in excess of this value. Tax increases up to 11 and 13% in areas where there are fire stations. In addition, local authorities levy a tax of 3% tax paid on the sale of the property. In certain circumstances you can get a full or partial exemption from sales tax the purchase of certain property such as farmland, the first (major) places of residence, purchases made through the transfer of foreign currency convertible foreign nationals of Greek origin.
Property owners pay property tax of 0.7% of market value. On the basis of tax deducted 200 000 property value. Legal persons engaged in non-profit religious activities, charitable or educational pay this tax at 0.35% of the objective value of the property, and deducts the tax base of 500 000 real estate market value.
The tax shall be exempted buildings owned industrial enterprises, mining, lead mines, commercial, agricultural, cattle and hotels, if you are used to operate production or trade.
Taxes do not pay state actors, public authorities, churches, monasteries, sports clubs and organizations, funds or social security. )