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Greece - TAXES ACCOUNTING |
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Corporate tax
Tax rate for resident companies |
The rate applies for retained and distributed profits:
- For limited companies and corporations: 32% on 01/01/2005.
- For General Partnerships (OE) and Limited Partnerships (EE): 25%
The Greek government has introduced a wide-ranging corporate tax bill that will cut the rate of corporate tax by 10%, from 35% to 25% in 2007.
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Taxe rate on long-term capital gains |
Capital gains are taxed at a rate beetween 20% and 35%.
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System governing groups of companies and dividends paid by subsidiaries to their parent companies |
Dividends paid to non - resident companies.
No withdraw at the source, even if a fiscal agreement exists.
Dividends paid to companies residents: no withdraw at the source and tax exemption on the income of the shareholder.
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Tax rate on branches |
Subsidiaries are taxed following local companies rules. Branches are taxed at a rate of 40%.
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Income tax
Fiscal year |
The fiscal year begins on January 1-st and ends on December 31 of the same year.
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Income tax rate |
Tax schedule 2005 (on 2004 income):
| In euros | Rate | | 0 - 10.000 | 0% | | 10.000 - 13.400 | 15% | | 13.400 - 23.400 | 30% | | > 23.400 | 40% |
The married taxpayers are subjected to a separated levy.
Non residents pay a surcharge of 5% when their incomes exceed 10.000 euros. The E.U. residents are exempted with the surchage if more than 90% of their incomes is of Greek source.
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Tax deductions or
other allowances |
In Greece, deductions concern Greek residents. There are several types of deductions subjected to some limits and to some conditions.
For example:
Medical and hospitalization expenses.
Social Security taxes.
Loan interests for the purchase of the main home.
Donations to charitable organizations.
Deductions give rights to deductions or tax credits.
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VAT rates
Standard rates |
18% is the regular rate of VAT in Greece.
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Reduced rates |
Different rates apply on some Greek islands. Reduced rates of 4% on (for example) books and newspapers; 8% on food, pharmaceuticals and public transport
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Other important taxes
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Name of tax |
Rate |
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Large real estate tax
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0.7% from 243 600 EUR.
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Tax on the transfers of properties in return for remuneration (built or not built)
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9% on the value of the urban property good until 15 000 EUR then 11% beyond; 7% on the value of the rural property good until 15 000EUR, then 9% beyond (plus a local rise from 0.25 to 0.35% of the tax in every case.
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Tax on the succession and donation
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0 to 60% (with an income tax franchising of about 15% of the amount of the mutant assets.
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Accounting
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Obligations and publications
Companies have to produce each year a financial statement including a balance sheet, a profit and loss account, a table of distribution of profits and an appendix. It must be audited, addressed to the limited companies register and published in the official gazette of the government.
Certification and auditing
The external control of accounts must be given to a body of auditors chosen by the company.
Professionals and representative organizations
The Greek institute of approved auditors (SOE: Soma Orkoton Elekton) is the official body of the auditing profession, it includes 420 members.
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Last modified in
January 2003
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