Greece enacted changes to the applicable transfer pricing (TP) documentation rules based on Law 4337/17.10.2015 on 17 October 2015 and issues guidance.

Based on the new Law 4337/17.10.2015, the following changes are introduced to the penalties imposed in case of non-compliance with TP obligations (amendment of article 56 of Law 4174/2013):

• Penalties for late filing of the Summary Information Table will be calculated at 0.1% on the value of the transactions subject to documentation requirements with a minimum penalty of €500 and a maximum penalty of €2,000.
• Penalties for an inaccurate filing of the Summary Information Table will be calculated at 0.1% on the value of the amounts to which the inaccuracy relates with a minimum penalty of €500 and a maximum penalty of €2,000, unless the inaccuracy of the amounts does not exceed 10% of the value of the total transactions subject to documentation (in such case no penalty applies).
• Penalties for non-filing of the Summary Information Table will be calculated at 0.1% on the value of the transactions subject to documentation requirements with a minimum penalty of €2,500 and a maximum penalty of €10,000.
• In the case of filing an amended Summary Information Table, a penalty applies only to the extent that the amounts are amended and such amendments exceed the amount of €200,000. In the case that the amended amounts exceed €200,000, then the penalty is calculated at 0.1% on the value of the transactions subject to documentation requirements with a minimum penalty of €500 and a maximum penalty of €2,000.
• In the case of failure to provide the tax authorities with TP Documentation within 30 days from the official request, a penalty of €5,000 applies, which is increased to €10,000 if TP Documentation is provided after 60 days, and to €20,000 if it is provided after 90 days or it is not provided at all.
• Based on the new Law, no penalty appears to explicitly apply anymore for the filing of an incomplete or insufficient TP Documentation File. However, in such cases, the penalties for not providing the TP Documentation File are likely to be applicable.

Circular 1142/2 October 2015 introduced changes to the previously issued guidance regarding the databases allowed to be used for the performance of benchmarking studies for years started or starting from 1 January 2014 forwards. Specifically, under the new guidance, a taxpayer may perform the benchmarking study for a fiscal year based on the available database versions during the period of the two months prior the end of such fiscal year and up to the expiration deadline for filing the Summary Information Table for such fiscal year.

The above changes appear to be applicable for penalties imposed from 12 October 2015 (date of submission of the draft law in the Greek Parliament) and relate to years started after 1 January 2014 (as the amended Law 4174/2013 provisions apply for fiscal years starting after 1 January 2014).

The Ministry of Finance with the Document DELD1133839EX2015 dated October 02, 2015 also provides guidance on the implementation of Article 39 of Tax Law.