The Public Revenue Authority has published Circular POL 1068 on 2nd June 2016 for providing clarifications on the increased 15% withholding tax rate and the taxation of dividend income earned. The Circular settles the provisions of Law 4389/2016 will apply from 1st January 2017 and onwards. It also states that dividends distributed within the financial year 2016 will be subject to 10% withholding tax rates. If a withholding tax of 15% has been imposed before the entering into force of Law 4389/2016, the difference of 5% is not due and, if paid, is returned as unduly paid tax. A 10% withholding tax applies for temporary abstractions within the financial year 2016 from the profits of general and limited partnerships, civil societies engaged in business activities, civil companies, undisclosed partnerships and joint ventures, but if the relevant approval of the ordinary general meeting of shareholders or partners takes place within the financial year 2017, then temporary abstractions from the profits of Ltds. (i.e. the limited liability company (E.Π.Ε.) or the private capital company (I.K.E.) during financial year 2016 will be subject to 15% rate.
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