Greece: Incentives for business re-organization under Income Tax Code

The Public Revenue Authority has published a Circular 1198/2016 on 23^rd December 2016 to provide explanations on the tax treatment of business re-organizations under the Income Tax Code (ITC). According to article 61 of Law 4438/2016, no tax, stamp duty or any other fee/contribution to the Greek state or any other third party is imposed with respect to the statutes, the contribution or asset transfers for companies involved in a business reorganization; the appropriate acts or agreements referring to the contribution or the transfer of rights of assets or liabilities or rights and obligations; the decisions of the statutory bodies of the companies involved; the shareholding in the capital of the new company; or any other agreement or act necessary for the business reorganization or the formation of the new company, publication in the General Electronic Commercial Registry or the registration of the relevant transactions. This provision on incentives for business reorganizations under the ITC applies in accordance with Law 4438/2016. It applies to decisions of the statutory body of the relevant companies in relation to any business reorganization where the decision was taken from 28^th November 2016 onwards. It aims to give uniform treatment for business reorganizations under the ITC and investment laws.