For income tax returns submitted from 01.01.2014 and onwards it is foreseen, that within ninety (90) days from the date the written application has been submitted, the beneficiaries will receive the amount which remains to be returned, after all eventual offsetting with their certified debts to the tax Authority has been completed.

The application should indicate the IBAN number of the beneficiary’s bank account and include any written declaration of offsetting of the repayable amount with future debts.

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(The clarifications of the Ministerial Decision POL 1056 / 02.03.2015 of the Minister of Finance have been taken into consideration).

The provisions amounts for bad debts amortization and the write-off of those provisions amounts are deductible for tax purposes, thus as per the following cases:

a) In cases of due receivables up to an amount of € 1.000,00, which have not been collected for a period of over 12 months, the tax payer can build a provision for bad debts to a percentage of 100% of the receivable concerned, provided that the necessary actions¹for the assurance of the right to collect the receivable concerned, are undertaken,

b) In cases of due receivables over the amount of € 1.000,00, which have not been collected for a period of over 12 months, the tax payer can build a provision for bad debts, provided that the necessary actions¹ for the assurance of the right to collect the receivable concerned, are undertaken, according to the following table:

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By the Article 8 of Law 4172/2013, paragraph 3 it is specified that the income tax imposed on the income of each taxpayer, regards income which has been gained during the direct previous tax year (ie. Income tax 2015 levied on the income of the year 2014 and so on).

The income is acquired, according to the explanatory memorandum of the abovementioned law, at the time at which the beneficiary has rendered his services or transferred the ownership of the goods / products and obtained the right to receive the income (on the earned income basis).

These two conditions need to be met cumulatively for the taxation of the income.

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With the implementation of the Law 4337 / 2015 major changes were made in the Tax penalty sanctions, in regards to the Intercompany transactions, we had the following changes:

• For the late submission (beyond four months), or inaccurate submission of the summarizing Information Table, a penalty of 1/1000 of the amount of the Transactions is imposed, with a minimum amount of € 500,00 and maximum amount of € 2.000,00 (in the previous law the maximum penalty was € 10.000, 00).
• For the late submission of an amended summarizing Information Table, the same penalty is set only if the amounts of the transactions which have been amended are higher than € 200.00,00.
• For non-submission of the Information Table, a penalty equal to 1/1000 of the amount of the transactions is set of a minimum amount of € 2.000,00 and maximum amount of € 10.000,00 (in the  previous law the maximum amount was € 100.000,00).
• For the late submission
  • • Submission to the Tax administration later than the 31st day, penalty € 5.000,00
    • Submission to the Tax administration later than the 61st day, penalty € 10.000,00
    • Submission to the Tax administration later than the 90th  day, penalty € 20.000,00
    • No submission of the Transfer Pricing Documentation, penalty of € 20.000,00

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.