We would like to inform you herewith that with the release on 22.12.2016 of Law 4446/2016 (Government's Gazette Α240), the way of calculating the value of the vehicle's concession to an employee or partner or shareholder from a natural or legal person or legal entity has changed.

This change applies from 01.01.2016 and onwards, which means that the implementation of Law 4389/2016, Paragraph 1 of Article 44 is hereby revoked, this law, by the way, did not have sufficient time to be implemented.

The new Law 4446/22.12.2016 in Article 99 mentions :

"The value of the concession of a vehicle to an employee or partner or shareholder from a natural or legal person or legal entity, for any time period within the tax year, is calculated as percentage of the Retail Price Before Taxes of the vehicle as follows :

a) for a Retail Price Before Taxes from 0 to 12.000 Euro, as a percentage of 4% of the Retail Price Before Taxes as additional yearly income,

b) for a Retail Price Before Taxes from 12.001 to 17.000 Euro, as a percentage of 7% of the Retail Price Before Taxes as additional yearly income,

c) for a Retail Price Before Taxes from 17.001 to 20.000 Euro, as a percentage of 14% of the Retail Price Before Taxes as additional yearly income,

d) for a Retail Price Before Taxes from 20.001 to 25.000 Euro, as a percentage of 18% of the Retail Price Before Taxes as additional yearly income,

e) for a Retail Price Before Taxes from 25.001 Euro and onwards, as a percentage of 22% of the Retail Price Before Taxes as additional yearly income, regardless of the vehicle belongs to the company or it is by any means leased to the aforementioned persons. The aforementioned percentage of each vehicle is not divided to more than one persons.

The value of the vehicle's concession is reduced based on its years of age as follows :

i) for 0-2 years, no reduction

ii) for 3-5 years, reduction of 10%

iii) for 6-9 years, reduction of 25%

iv) from 10 years and onwards, reduction of 50%

From the provisions of the present legislation, there is an exception concerning the vehicles which are exclusively conceded for professional scope and have a Retail Price Before Taxes up to 12.000 Euro.

We shall inform you accordingly about any new clarifications which shall be given by the Ministry of Finance.

 

 

Note:

The company bears no responsibility for the aforementioned topics which are exclusively for information purposes.

In case you have any personalized requests or needs to cover and for the proper use of any information obtained from this article, it is important to seek additional expertise advice. 

According to Law 4446/22.12.2016, there shall be transactions via electronic means of payment applicable from 01.01.2017 and onwards which shall be tax deductible.

 

 

Payroll payment via electronic means

From 2016  December 22nd and onwards, any employer paying remuneration fee amounts in cash, looses the deduction right from the taxable income and therefore faces the risk with an additional taxation. More specifically, from this specific date and onwards, personnel payroll expenses, fees for those working on services rendering status, as well as fees of directors or members of the Board of Directors, such as lawyers' standard fees (which are included as an example in the expenses performed within the framework of the employment relationship), are deductible from the companies' gross income, provided that their partial or whole repayment has been realized by using electronic means of payment or through payment services. In case those expenses are paid via cash, they are no longer deductible (Article 72, Paragraph id). 

 

Note:

The company bears no responsibility for the aforementioned topics which are exclusively for information purposes.

In case you have any personalized requests or needs to cover and for the proper use of any information obtained from this article, it is important to seek additional expertise advice.