Newly enacted law 4714/2020 includes tax measures concerning the taxation of legal entities and individuals.
Concerning the taxation of legal entities, the new law reflects a reduction of income tax advance payments (estimated payments); incorporation of hybrid mismatches resulting from payments regarding financial instruments (anti-tax avoidance EU directive, ATAD 2); and the transposition of the exit tax rules (ATAD2).
The new law includes indirect tax amendments such as changes to the value added tax (VAT) rate for books (6%) and tickets for sports events (13%). The “quick fixes” VAT regime is also transposed into the Greek VAT regime.
For individual taxpayers, there are reduced rates and an alternative tax system for foreign-source income, and an employment tax exemption for “free shares” (share provided within the framework of a share plan). Another measure provides favorable tax treatment of capital gains realized from stock options and on free shares.
Other measures concern the tax dispute out-of-court resolution and the mandatory automatic exchange of information on reportable cross-border arrangements.
Read an August 2020 report [PDF 411 KB] prepared by the KPMG member firm in Greece
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