According to the provisions of article 45 of Law 4172/2013 the persons are defined, which are subject to income tax of legal persons and legal entities.
In particular, the following kind of companies / entities and other forms are subject to the aforementioned tax :
A. the capital companies which were established in the domestic land or abroad,
B. the partnerships which were established in the domestic land or abroad,
C. the non-profit legal persons of public or private law, which were established in the domestic land or abroad, those include any kind of associations and institutions,
D. the cooperative societies and their associations,
E. the civil law societies, the profit seeking or non-profit societies governed by civil law, the participating enterprises or dormant companies, provided that those exercise business activity,
F. the joint ventures, and finally,
Ζ. the rest legal entities, which are not included in the aforementioned cases.
The non-profit legal persons governed by public or private law, are subject to income tax for legal persons and legal entities, with the exception of any kind of income implemented while aiming for their scope. Those kinds of income are no subject of the imposition of income tax.
There are indicatively kinds of income, such as the contributions (subscriptions) and the registration rights of their members, the income from fund-raising, the public (state) subsidies, the sponsorships of individuals or enterprises, the donations of third parties, the lottery drawings, income from advertisings registered into magazines which are issued and distributed only to their members free of charge, as well as income from the distribution of leaflets and other printed matters of spiritual content of the Sacred Monasteries.
On the contrary, the income which is obtained by the aforementioned non-profit legal persons from activity which does not constitute an exercise of their non-profit scope and mission, is subject to taxation, even in the case that this income is disposed for the fulfillment of their non-profit scope.
Kinds of income, beyond those deriving from capital (interest, income from property etc.) and capital transfer gain, are, for example, also the contributions from third parties non-members, the income from the sale of magazines, books, printed material etc. to third parties non-members, such as income from the advertisements which are entered into those printed materials, the income from the promotional actions printed on T-Shirts of Sports Associations, the income (school fees) from the operation of private schools, workshops etc., the income from the sale of drawing pictures, the business undertaking of holiday accommodations and radio and broadcasting stations from the sacred monasteries etc.
It is herewith pointed out that, in any case, the finding and determination of the implementation of revenue while aiming for the fulfillment of the scope of the aforementioned non-profit legal persons, is due to the auditing competence of the tax authority which provides the relevant review and judgment based on their dedicated and determined scope, both on the means of acquisition and disposal of their income.
NOTE: This article does not cover advisory, but only informational purposes, and cannot serve, as a basis for further actions, on the part of the reader. Reception of specialized advice is required.
Our company does not hold any responsibility for any actions, taken by the readers, based on the present article.