Three amendments to the law that amends the Income Tax Code, VAT Code and tonnage tax regime have been submitted to the parliament on 19th December 2016. The amendments are given below:
- The first installment of the tonnage tax and the Marine Retirement Fund (NAT) special levy for Category A vessels should be paid by the end of the deadline for filing the relevant tax return. When a tax return has been submitted after 31st December of the year, the relevant tax should be paid by the end of the deadline for filing the tax return. The provisions will be applicable for tax returns submitted as per 1st January 2017 and referring to tax periods after that date.
- Loss transfer: Article 27(4) of the Income Tax Code has been replaced by a new paragraph which explains the conditions under which the transfer of foreign permanent establishment losses should be permitted. In accordance with the proposed provision, losses arising from the business activities of a foreign permanent establishment cannot be start in Greece in the same tax year and against future profits, but for losses arising from business activities of a permanent establishment in the EU/EEA country with which Greece has settled a tax treaty according to which the permanent establishment profits are not exempt in Greece.
- A VAT rate with 30% reduction has been maintained in Lesbos, Chios, Samos, and the Dodecanese island complex excluding Rhodes and Karpathos) under certain conditions for fiscal year 2017.
