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Clarification on Greek TP documentation


Greece has issued two decisions to clarify the application of documentation rules in cases of tax adjustments and the issue of whether Real Estate Investment Companies are liable companies for transfer pricing purposes.

General TP documentation framework

The intragroup transactions and transfer of functions entered into by domestic legal entities that fall under the scope of art.2 L.4172/2013 (including Greek sociétés anonymes, limited liability companies, private companies, cooperatives, associations, foundations, consortia, etc.), are subject to transfer pricing documentation requirements.

Exemptions from the transfer pricing documentation obligation are available in the following cases:

  • Intragroup transactions or transfers of functions with one or more related parties not exceeding €100,000 ($110,000) annually and in total, provided the taxpayer’s turnover during the fiscal year does not exceed €5,000,000.

  • Intragroup transactions or transfers of functions with one or more related parties not exceeding €200,000 annually and in total, provided the taxpayer’s turnover during the fiscal year exceeds €5,000,000.

Under the Greek Code of Tax Procedures (L.4174/2013), taxpayers must prepare the transfer pricing documentation file within four months following the fiscal year end. The transfer pricing documentation file must be made available to the tax authorities within 30 days following a relevant request.

Clarifications as regards tax adjustments

The Greek transfer pricing rules aim at ensuring that the taxpayer’s reported taxable profit is not reduced through intercompany transactions. In this sense, any transfer pricing adjustments from the tax authorities can only be made to the extent that they do not reduce the taxable income.

Taking this into account, the Ministry clarified that non-tax deductible expenses that are being adjusted for tax purposes by the taxpayer himself, along with the submission of the relevant annual corporate tax return, do not fall within TP documentation requirements, even if they refer to intercompany transactions.

However, such intercompany transactions, for which a relevant tax adjustment has been effected, should be included in both the Summary Information Table and the Transfer Pricing Documentation File, for completion purposes, with the indication that they refer to non-tax deductible expenses, which have been adjusted for tax purposes with the submission of the annual corporate tax return.  

Clarifications as regards REICs

REICS are not subject to standard corporate income tax, as explicitly mentioned in the Greek Income Tax Code, but instead, they are subject to a special tax regime (pursuant to Law 2778/1999). This means they are subject to tax at a rate set at 10% of the applicable European Central Bank intervention rate (Interest Reference rate) increased by one point, calculated on the average of the investments, plus any available funds, at their current value. Therefore, given the specific tax regime which applies in case of REICs, the transfer pricing provisions of both the Greek Income Tax Code and the Greek Code of Tax Procedures, with regard to the transfer pricing documentation requirements, are not applicable. Therefore, REICs are not subject to any transfer pricing documentation rules. 

Eftichia Piligou

Eftichia Piligou, Tax principal


Vasiliki Athanasaki

Vasiliki Athanasaki, Tax supervisor

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