The new law also modifies the term related entities by introducing, among other things, the criterion of a minimum participation percentage to the share capital of 33%.
Extension of the deadline for filing the transfer pricing documentation file and the summary information table
According to article 64 of the new law, for accounting periods beginning from January 1 2012 and ending up to May 30 2013, the transfer pricing documentation file should be compiled and the summary information table filed until July 31 2013.
It is noted that, for accounting periods ending after May 30 2013, the general deadline is applicable, in that it is 50 days after the fiscal year end.
Modification of the definition of related entities
Furthermore, the new law modifies the definition of related entities specifically covering the following cases:
Participation of one entity to another entity’s share capital through direct or indirect ownership of stock, shares or any other participation rights of at 33% in terms of value or number;
Relation to any other entity that directly or indirectly owns stock, shares, voting rights or any other participation rights of at least 33% in terms of value or number of any of the related entities; and
Relation to any other party with which a substantial direct or indirect administrative dependence, or control exists, or any other party that exercises or is capable of exercising decisive influence in relation to an entity’s decision making as well as common control or dependence or influence by a third party.
With the exception of the first, the abovementioned definitions raise significant interpretation issues in relation to which clarifications should be expected by the Ministry of Finance.
A Ministerial Decision which will set out the content of the transfer pricing documentation file and the summary information table as well as other issues in relation to the articles 39 and 39A of the Income Tax Code is expected.
Author:
Eftichia Piligou, epiligou@deloitte.gr
Tax principal, transfer pricing,
Deloitte Business Solutions Hadjipavlou, Sofianos & Cambanis S.A.
For more analysis see:
Greece introduces TP reforms after IMF/EU demands tighter regulation
