On 11 January 2021, the Greek Public Revenue Authority (AADE) published Circular Ε. 2004 of 11 January 2021, which describes the application of the rule of limitation of interest as amended from 1 January 2019.
According to the Circular, the new rule contains a 30% of EBITDA restriction with a standard safe harbor threshold of EUR 3 million in line with the EU Anti-Tax Avoidance Directive (ATAD). Again, the new interest rate rule replaces the previous term ” surplus expenditure ” and introduces the new term “excess cost lending”. The Circular indicated that the limitation rules apply at the level of individuals legal entities, whether they belong to a group or not, and therefore, when calculating both the excess borrowing cost and the EBITDA the transactions of the legal entity / entity with others are also taken into account persons of the same group.
