The Article 4 of the Tax Bill of the Ministry of Finance entitled “Tax Reform with development dimension for tomorrow's Greece”, voted on 06.12.2019, includes a provision, which changes the way of taxation of the benefit in kind with the form of a business vehicle, from 01.01.2020.

In particular, the value of granting a vehicle to an employee or partner or shareholder by an individual or legal person or legal entity, and for any period of time within the tax year, is calculated on a scale as a percentage of the Retail Price Before Taxes (LTPF) of the vehicle. Analytically:

For LTPF up to € 14.000,00, the calculation rate amounts to 4% and the resulting amount is counted as an additional, annual income.

For LTPF from € 14.001,00 – € 17.000,00, the calculation rate amounts to 20% and the resulting amount is counted, as an additional, annual income.

For LTPF from € 17.001,00 – € 20.000,00, the calculation rate amounts to 33% and the resulting amount is counted as an additional, annual income.

For LTPF from € 20.001,00 – € 25.000,00, the calculation rate amounts to 35% and the resulting amount is counted as an additional, annual income.

For LTPF from € 25.001,00 – € 30.000,00, the calculation rate amounts to 37% and the resulting amount is counted as an additional, annual income.

For LTPF more than € 30.001,00, the calculation rate amounts to 20% and the resulting amount is counted as an additional, annual income.

The value of the vehicle’s granting resulting from the above scale, is reduced by 10% for vehicles aged 3 - 5 years, by 25% for vehicles aged 6 - 9 years, and by 50% for vehicles of more than 10 years. For vehicles of up to 2 years’ oldness, no reduction is foreseen.

Indicatively and based on the aforementioned, for the granting of a vehicle throughout the year, of LTPF of € 18.000,00 and of 5 years’ oldness, there will be a benefit in kind, amounting to € 1.490,00 - € 149,00 = € 1.341,00. It should be noted, that the above percentage of each vehicle is not shared to more than one person.

Excluded from the above provisions, are the vehicles, which are granted exclusively for business purposes and have a LTPF of up to € 17.000,00. This category includes vehicles provided to salespeople, technicians and other employees, whose work requires daily commuting, outside the company’s premises.

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.