Greece: Guidance for company re-organizations

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Guidance regarding tax rules through Circular POL 1057/2017 have been issued by the Public Revenue Authority. The guidelines clarify the rules on restructuring in relation to the different types of company at a domestic or EU cross-border level, introduced by Law 4172/2013 (new Income Tax Code).

The previous lack of guidance had given rise to uncertainty as to the application of the new law and how it interacted with prior regimes providing for tax neutrality of certain re-organizations. There was also uncertainty about the method for computing tax liabilities after a taxpayer has benefited from the roll-over relief granted by the rules. The rules relate to mergers, total and partial divisions, share exchanges, transfers of assets and the change of location of the registered office of an SE or SCE. According to the new guidance, paragraph 7 was replaced by paragraph 2 of article 32 of l. 4465/2017 (GG A’47 / 04.04.2017) with effect from the publication of the law in the Official Gazette on 4th of April 2017 in accordance with Article 62 of the law. The guidance covers the procedure for approval of mergers and issues such as the valuation of assets and determination of the share exchange ratio.

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