GreeceGreece

Legal ReferenceIncome Tax Code (L.4172/2013, Article 50)

The provisions of Income Tax Code with regards to Transfer Pricing are applied and interpreted consistently with OECD general principles and the OECD Transfer Pricing Guidelines. The OECD TPG are also followed during MAPs and APAs procedures.

Legal ReferenceIncome Tax Code (L.4172/2013, Article 2, Section g)

Section g Article 2 of the Income Tax Code contains the Greek definition of related parties: ‘Associated person’: any person who participates directly or indirectly in the management, control, or capital of another person with whom they are related or associated. In particular, the following persons are regarded as associated persons: aa) any person who owns directly or indirectly stocks, shares, or shareholding of thirty-three (33) percent or more, by value or by number, or profit rights or voting rights, bb) two or more persons if one person owns directly or indirectly stocks, shares, voting rights or participation in the capital of at least thirty-three (33) percent, by value or by number, or profit rights or voting rights, cc) any person with whom there is a direct or indirect relationship of substantial management dependency or control, or who has or could potentially have a decisive influence on another person, or where both persons have direct or indirect relationship of substantial management dependency or control with a third person or are potentially influenced by such third person.

Legal ReferenceDecision No POL. 1097/9.4.2014, as in force

The Decision No POL. 1097/9.4.2014, as in force, provides for the preference of the traditional transaction methods (Comparable Uncontrolled Price Method, Resale Price Method, Cost Plus Method) for determining transfer prices to transactional profit methods. Traditional transaction methods are regarded as the most direct means of establishing, whether conditions in the commercial and financial relations between associated enterprises are arm's length. Transactional profit methods can be used under certain circumstances, i.e. if the traditional transaction methods cannot be applied reliably. Furthermore, the Decision No POL. 1097/9.4.2014, as in force, contains additional regulations regarding TP methods. It refers directly to the OECD TP Guidelines for Multinational Enterprises and Tax Administrations, as updated from time to time.

• CUP (provided)
• Resale Price (provided)
• Cost Plus (provided)
• TNMM (provided)
• Profit Split (provided)
• Other (not provided)

The selection of the TP method is dependent on the facts and circumstances of each case.

• Hierarchy of methods (not selected)
• Most appropriate method (selected)

Greek’s domestic legislation does not contain specific guidance on commodity transactions. The guidance on commodity transactions contained in the OECD TPG is followed.

• For controlled transactions involving commodities, the guidance contained in paragraphs 2.18-2.22 of the TPG is followed. (selected)
• Domestic legislation mandates the use of a specific method for controlled transactions involving commodities (not selected)
• Other (not selected)

Legal ReferenceDecision No POL. 1097/9.4.2014, as in force; Decision No POL. 1142/2.7.2015

Greece follows the process outlined in Chapter III of the TPG. Please refer also to the specific reference for domestic regulations with respect to Comparability Analysis.

Legal ReferenceDecision No POL. 1097/9.4.2014, as in force; Decision No POL. 1142/2.7.2015

Please refer to the specific reference for domestic regulations with respect to the use of an arm’s length range and statistical measure for determining arm’s length remuneration.

Legal ReferenceDecision No POL. 1097/9.4.2014, as in force

Comparability adjustments are not definitely required under internal regulations, but, in some cases, they may be necessary to account for differences between the situations being compared.

Greece’s domestic legislation does not contain specific guidance on intangible transactions. The general legislative rules for transfer pricing of transactions at the arm’s length price apply also to intangibles. Furthermore, as a source of interpretation, the TPG are used.

The TP rules, as provided by the Greek Tax legislation, are applied and interpreted in line with the principles and guidelines of the OECD, as in force. Consequently, the guidance and rules on HTVI within the amendments to the TPG made by the BEPS Actions 8-10 Final Report shall be followed to determine transfer pricing justification.

Rules regarding withholding taxes are applied.

Greece does not have specific rules on intra-group services, but the TP rules, as provided by the Greek Tax legislation, are applied and interpreted in line with the principles and guidelines of the OECD, as in force.

As a source of interpretation, the work of the EU Joint Transfer Pricing Forum on low-value adding intra-group services and the OECD TPG may be used.

Rules regarding withholding taxes are applied.

Greece does not have specific rules on financial transactions, but the TP rules, as provided by the Greek Tax legislation, are applied and interpreted in line with the principles and guidelines of the OECD, as in force.

Legal ReferenceIncome Tax Code (L.4172/2013, Article 49)

Greece has implemented Article 4 of the Council Directive (EU) 2016/1164 (Interest limitation rule), according to which exceeding borrowing costs are deductible during the tax year in which they are incurred only up to thirty percent (30%) of the taxpayer’s earnings before interest, tax, depreciation and amortization (EBITDA). Exceeding borrowing costs can be deducted up to the amount of EUR three million (3 000 000) (Article 49 of the Income Tax Code).

Greece does not have specific rules on CCAs, but the TP rules, as provided by the Greek Tax legislation, are applied and interpreted in line with the principles and guidelines of the OECD, as in force.

Legal ReferenceTax Procedure Code (L.4174/2013, Article 21); Decision No POL. 1097/9.4.2014; Decision No POL. 1142/2.7.2015; L.4484/2017; Law 4490/2017; Decision No POL. 1184/22.11.2017; Decision No POL. 1341/2019

Summary Information Table: The Summary Information Table contains information regarding the group they belong to, the functions performed and the risks assumed, as well as a short description of the transfer pricing documentation method adopted.

• Master file consistent with Annex I to Chapter V of the TPG (selected)
• Local file consistent with Annex II to Chapter V of the TPG (selected)
• Country-by-country report consistent with Annex III to Chapter V of the TPG (selected)
• Specific transfer pricing returns (separate or annexed to the tax return) (not selected)
• Other (specify): Summary Information Table (selected)

Transfer Pricing Documentation File is consisting of the Master File and the Greek Documentation File and shall be prepared until the filing deadline for income tax returns. The TP Documentation File shall be accompanied by the Summary Information Table, which shall be submitted electronically to the Tax Administration within the same deadline. TP Documentation File shall be kept at the headquarters of the taxable person. TP Documentation File shall be made available to the Tax Administration upon request within thirty (30) days. The Master File may be kept in an internationally accepted language, preferably English, when it is a foreign group, with an obligation to be translated into the Greek language upon request. In all other cases, the TP Documentation File shall be kept in the Greek language. The CbC Reporting should be submitted no later than 12 months after the last day of the relevant fiscal year. Notifications must be submitted until the last day of the relevant fiscal year.

Legal ReferenceTax Procedure Code (L.4174/2013, Article 56); Decision No POL. 1252/20.11.2015; L.4484/2017

In cases of late filing or failure to file or inaccurate/incomplete filing of the Summary Information Table or the TP Documentation File, fines are imposed. Late/inaccurate filing of Summary Information Table: fine of 1/1000 of transactions (min EUR 500, max EUR 2 000). Non-filing of Summary Information Table: fine of 1/1000 of transactions (min EUR 2 500, max EUR 10 000). Late availability of TP Documentation File: EUR 5 000 (31-60 days), EUR 10 000 (61-90 days), EUR 20 000 (after 90 days or not at all). Fines double for repeat violations within 5 years. CbC Reporting: EUR 20 000 for non-filing, EUR 10 000 for late/inaccurate filing.

Legal ReferenceTax Procedure Code (L.4174/2013, Article 21); Decision No POL. 1142/2.7.2015

Exemptions: a) intercompany transactions do not exceed EUR 100 000 per tax year where turnover does not exceed EUR 5 million, or b) intercompany transactions do not exceed EUR 200 000 per tax year where turnover exceeds EUR 5 million. Additionally, tax-exempt legal entities and individuals (regardless of business activity) are not obliged to document transactions with related parties.

Legal ReferenceTax Procedure Code (L.4174/2013, Article 22); Decision No POL. 1284/31.12.2013; Decision No POL. 1129/30.8.2017; Decision No POL. 1226/6.10.2020; Greece's MAP Profile

Advance Pricing Agreements (APA) including Unilateral, Bilateral, and Multilateral APAs, and Mutual Agreement Procedures are available.

• Rulings (not selected)
• Enhanced engagement programs (not selected)
• Advance Pricing Agreements (APA) (selected)
• Mutual Agreement Procedures (selected)
• Other (not selected)

In Greece, a year-end adjustment is possible when this leads to an arm’s length outcome.

Greece’s domestic law follows the AOA. However, there are no tax treaties at the moment that contain the new version of Article 7 of the OECD MC. For tax treaties that do not contain the new version, Greece would apply profit attribution following the article in the respective treaty and would not follow the AOA.