This publication in the Official Government Gazette Α‘ 110/01.08.2017, Law 4484/2017, which inter alia provides new transfer pricing documentation requirements, introduces the provisions of EU Directive 2016/881 on mandatory automatic exchange of information by Country by Country reporting (CbC) in the field of taxation into Greek legislation. The new tax requirements follow the guidance provided under Action 13 of the OECD’s Base Erosion and Profit Shifting (BEPS) initiatives. Such reporting enables Greek tax authorities to assess potential transfer pricing risks and other risks related to base erosion and profit shifting.
The new provisions of Greek CbC reporting as set forth in Law 4484/2017 and Circular 1131/2017 provide the following:
• The CbC report applies to multinational groups of entities (MNEs) headed or operating in Greece, with a consolidated group turnover exceeding €750 million in the fiscal year preceding the fiscal year to which the CbC report applies.
• The CbC report is filed by the ultimate parent company of every liable MNE group that has its tax residence in Greece.
• The first fiscal year to be reported is the one starting on or after January 1st, 2016, and the filing should take place within 12 months of the lapse of said fiscal year and any subsequent year to the extent that the €750 million threshold is exceeded.
• Especially for the CbC report of the first fiscal year beginning on or after January 1st, 2016, an extension has been provided and the CbC reports may be exchanged within 18 months of the last day of the fiscal year said reports refer to.
Greek ultimate parent entities controlling a multinational group of entities (MNEs) with annual total consolidated group revenues exceeding €750 million shall file CbC reports with the Greek tax authorities. The Ecovis experts point that under certain conditions, Greek entities which are part of multinational groups without a Greek resident ultimate parent company may also be designated to file a CbC report or in any case to proceed with the required notifications regarding the indemnity of the group entity obliged to file the CbC report and its tax jurisdiction.
Furthermore, a Greek tax resident group entity, even if it is not the ultimate parent, may be subject to the report filing, if it meets certain criteria.
Author:
Dimitrios Leventakis, partner, tax advisor, ECOVIS Hellas Tax Advisors, Athens, Greece
E-Mail: dimitrios.leventakis@ecovis.gr, athenstax@ecovis.com
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