Within the framework of your constant information from our company, we would like to inform you about the new support measures, which the Greek Government has announced. In particular, we would like to inform you about the opportunity, given to all the companies with 1 to 500 employees, to apply for a so – called “Repayable Advance Payment”, as liquidity aid. Beneficiaries, are all the companies, regardless of their legal form & activity (“KAD”). The relevant, electronic platform of the Ministry of Finance, will open from the beginning of this week, and the final approval by the European Commission, is also expected.

This grant was called, as “Repayable Advance Payment”, because the companies will pay it – in fully or partially – after 5 years, depending on their profitability.

The first year is considered, as grace period. The received grant has to be paid back, monthly, within the next 4 years.

The loan, since it is basically a loan, will be almost interest free. The interest rate has not yet been announced, but it will be very low, according to the Minister.

The relevant application has to be submitted, until 10.04.2020, but, in our opinion, this deadline will be extended, as the companies do have little time to prepare the applications and upload them.

The Government’s goal is to pay out this grant, by the end of April. The companies have to declare their turnover, which will be compared to a number of other data, via a standard automated mechanism of the Ministry. The Ministry’s expected decision will set the distribution terms, in this case, the beneficiaries, the aid’s height, the decision for the grant & the interest’s return, the procedure of submitting the corresponding application, the privilege obligations (for example, the prohibition of firing personnel, etc.), and any other required information.

The acceptance criterion will result from the Corona – Virus’ punch strength.

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.

Within the framework of your constant information from our company, we would like to inform you about the provisions, published, among others, with the relevant decision as at 30.03.2020, regarding the circulation of post - dated negοtiable instruments (cheques & bills of exchange), with expiry date, from 30.03.2020 to 31.05. 2020.

In particular, for these negotiable instruments, the deadline for their expiry, appearance & their payment, can be suspended, by seventy - five (75) days, from the date, which each negοtiable instrument bears. For instance, a cheque, expiring on 15.04.2020, can be paid on 29^th of June 2020.

Companies, which, based on the foreseen activity codes (“KAD”), have suspended their business activity, under a governmental mandate, as well as those companies, which have been drastically affected by the Corona - Virus epidemic, can apply for a suspension of deadlines for any issued negοtiable instruments.
Companies, whose activity code will be included, after 30.03.2020, in the eligible activity codes, can also be included in this regulation.

Liable persons for electronic transmission of the data of the above negοtiable instruments, are: a) issuers of the negοtiable instruments, b) recipients of the negοtiable instruments, and, c) holders of the negοtiable instruments.

The data of the negοtiable instruments of the above deadlines, have to be transmitted to the operating Credit Institutions (Banks) in Greece, to the Branch - Offices of foreign Credit Institutions in Greece, to the Consignment Deposits & Loans Fund (“CDLF”) and to the Institutions of electronic money.

The transmission is performed, through a special, electronic application of the Credit Institutions, through the payment system of the company “DIAS S.A.” or the company “TEIRESIAS S.A”.

The transmission must be completed within three (3) working days, from the publication of the aforementioned decision, i.e. until Friday, on 02.04.2020

(we consider, that an extension will be granted, but this is still unknown). It should be noted, that for the companies, whose activity code will be included in the eligible ones in the future, a time - frame for transmitting the negοtiable instruments to the Banks, of three (3) working days, from the date of their inclusion in this measure, is foreseen.

Holders of negοtiable instruments, who do not belong to the affected activity codes, are able to be included in this regulation and so, from 01.04.2020, they can be included in the affected companies, provided though, that the total value of the negοtiable instruments, which are suspended, is more than 20% of the monthly, average, trading turnover in the year 2019, as this has been included in the corresponding Periodical VAT – Returns.

For instance, a company – holder of negοtiable instruments, amounting to € 200.000,00, whose the monthly, average trading turnover is € 900.000,00, can also be included in this regulation.

An exception is made for the companies - holders, whose turnover has increased, during the crisis, from the Corona – Virus epidemic, regardless of whether they meet the above criterion of 20%.

Moreover, it should be borne in mind that the aforementioned do not bind the payer as well as the payee of the negοtiable instrument, to agree on the direct payment of the negοtiable instrument to the payee, without the involvement of the credit institution concerned.

Finally, we should point out, that clarification circulars on this decision, are expected, since the relevant, electronic platform for submission to the Banks, is not yet ready for use.

An extension was already granted for the post – dated cheques, until Tuesday, on 07.04.2020.

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.

By the Official Gazette 624 / 26.02.20, the Decision of the Independent Public Revenue Authority & the Ministry of Finance No. A 1036, was published, which regulates the procedures and conditions for subjecting to the provisions of the Article 5^Α, Law 4172 / 2013, par. 10, regarding alternative taxation of the income, which is acquired abroad by individuals, who transfer their tax residence to Greece.

This is an innovation of the Tax System of our country, which was introduced by the recent Law 4646 / 2019 and aims at attracting investments of tax residences of high financial capacity and boosting the public revenues, through the introduction of capitals in Greece, the creation of investment units, the creation of jobs, as well as in the real estate market.

The main provisions in summary, are the followings:

For these individuals, Greece does not set a specific time of stay in the country, namely, the requirement of residence of 183 days in the country, is not examined.

The provisions of the Article 5^Α are more specific than all the others, and therefore, they take precedence over those, relating to the tax residence of the individuals. The provisions of this article, regulate only and exclusively the treatment of the tax residence of foreign residents, who wish to be included in the alternative way of taxation, which was introduced in our country and concerns only the income, acquired abroad.

Provided, that the specific individuals have income from domestic sources, they are taxed normally, in accordance with the applicable provisions for the nationals.

Any tax paid by these individuals to a foreign country, for the incomes, which will be covered by the alternative way of taxation, is not offset against any of their tax liabilities in Greece.

There is no obligation to justify the foreign currency imported from abroad.

The individual, who wishes to transfer his / her tax residence to Greece, has to submit, until 31.03. of each year, a relevant application, in order to be subject to the provisions of Article 5^Α of the Law 4172 / 2013, to the Tax Office of Foreign Residents & Alternative Taxation of Domestic Tax Residents (Department C1).

In order for an individual, who wishes to transfer his / her tax residence to Greece, he / she must cumulatively meet the following two conditions:

1. that he / she has not been a tax resident of Greece for 7 of the last 8 tax years, and
2. to be able to prove, that he / she, or a relative of him / her (spouses or children), or through a legal entity, in which he / she owns the majority of the shares, or the corporate shares, is investing himself / herself, an investment of at least € 500.000,00 in Greece.

The investment should belong to those (eligible), which contribute to the development of our country (tourism investment, energy investment, etc.). This investment must have been completed until 31.03.2023.

It is noted, that the last condition is not required for an individual, who has already obtained and holds a residence permit for investment activity in Greece (article 16 of Law 4251 / 2014).

In the event, that the residence of the individual does not arise from the records of the Tax Administration, then he / she is obliged to submit a Certificate of tax residence for the last 8 years, from the competent authority of the State, in which he / she has, until the time of the application, his / her tax residence. If this certificate cannot be issued by the competent tax authority of his / her State, then alternatively, income tax clearances of the last 8 years, or copies of his / her relevant tax returns, can be submitted.

For proving the status of a ''relative'', the submission of a relevant certificate by a public authority of the domestic or the foreign country, is required.

In order for the above public documents to be acceptable, they must be in accordance with the international legal standards and must bear, either an apostille stamp, or a consular validation, or a validation from the Greek Consulate. Validated copies of them will also be acceptable. Subsequently, these have to be translated by a person or an authority, or a body that performs officially translations (Article 3).

The application is submitted even without adducing the required supporting documents, but these documents must be submitted, until the last working day of each year, at the latest.

However, applications and supporting documents, can be accepted, under certain conditions, beyond those dates.

Being subject to the alternative taxation, cannot exceed the period of 15 years.  

The individual has the right to ask for a first - degree relative (spouse, adult children) to be included in the alternative taxation. In this case, the taxpayer, when submitting the application, must provide a written confirmation / certificate from these persons, stating, that they wish to be subject to the alternative taxation.

No submission of application for entry is required for minor children, who are deprived of income.

In the event of termination of the marriage relationship between the spouses, such persons are not subject to the relevant provisions.

► The relevant act of administrative designation, is issued by the competent tax authority, until 30^th June of each year, through which a flat – rate tax, amounting to € 100.000,00, per year, is charged. For the other persons included in this regulation, the annual tax is € 20.000,00 for each of them.

By the above payments, any tax liability of the individual for the income arising abroad, is exhausted.

In addition, the individual is exempt from inheritance, or property donation tax, which is located abroad.

Provided, that the individual, who falls under the provisions of article 5^Α of Law 4172 / 2013, in a tax year and at the latest, until the thirty - first (31^st) of December of that year, shall not pay the whole flat – rate tax amount defined, he / she shall cease, from the tax year concerned, to be subject to the provisions of this article and henceforth, he / she shall be taxed for his / her worldwide income, based on the general provisions of the Law 4172 / 2013.

► The individual is able to revoke his / her subsumption to the alternative taxation’s provisions, until 31st March of each year.

►The individual, after being subject to the alternative taxation, submits, each year, an income tax return in Greece. In this return, he / she has to include only the incomes and not the incomes of the foreign country, since, for them, he / she has been subject to the alternative taxation; so, he / she is being exempt from the tax for these incomes, in our country.

► After 3 years from the submission of the application for entry into the provisions of article 5A of the Law 4172 / 2013, the taxpayer has to visit the Tax Office of Foreign Residents & Alternative Taxation and submit the relevant supporting documents, through which the completion of the investment is being proven, for which he / she was subject to the alternative taxation.

► The investments required for being subject to the provisions of article 5A of the Law 4172 / 2013, should have taken place, from the beginning of the provisions, i.e. from 12.12.2019 & onwards.

This Law shall enter into force on 26^th February 2020.

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.

The Law 4647 / 2019 was passed at the end of 2019, which, in Article 51, paragraph 2, provides the properties’ owners with the possibility to amend at the “Public Power Corporation” (DEH), until 31.03.2020, any wrong square meter of their immovable properties, without retroactive effect and without imposing fines & surcharges.

There is a relative webpage, i.e. platform at the internet: https://tetragonika.govapp.gr/, where properties’ owners can submit the correct squares meters of their properties.

Please note, that the new way of calculating the municipal fees, will be effective from 01.01.2020.

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.