On 28 March 2022, Government published Law No. 4916/2022, which establishes new group escape rules for the 30% of EBITDA interest deduction restriction. The new group scape rule was made optional when the Greek interest restriction rules were introduced on 1 January 2019 in line with the EU Anti-Tax Avoidance Directive (ATAD). The new group escape rules are generally effective from 28 March 2022. According to the rule, when a taxpayer is a member of a consolidated group for accounting purposes according to the accounting standards, the taxpayer will be allowed to:
- Fully deduct their excess borrowing costs if the percentage (ratio) of its share capital to total assets is equal to or higher than the equivalent ratio of the group, or lower by at most two percentage points, and all the assets and liabilities are valued using the same method as in the consolidated financial statements; or
- Deduct their excess borrowing costs at an amount that exceeds the amount they would be entitled to under the standard 30% of EBITDA limit, with the higher amount calculated with some conditions.
