This document summarizes the transfer pricing requirements and regulations in Greece. Greece closely adheres to OECD transfer pricing rules in its legislation. The legal framework for transfer pricing in Greece includes various laws and codes. References to OECD Guidelines are embedded in the Income Tax Code and Tax Procedures Code. Greece follows a three-tiered approach for transfer pricing documentation: Master file, Local (Greek) file, and Country-by-Country Reporting (CbCR). A threshold for documentation requirements applies based on consolidated group turnover. Greece maintains a list of non-cooperative jurisdictions for tax purposes and countries with preferential tax regimes. Advance Pricing Agreements (APAs) are possible and can address complex TP cases, but they are granted at the discretion of tax authorities. Penalties and interest charges apply for late filing, inaccurate filing, or non-compliance with TP documentation requirements.
Greece has embraced the guidelines set by the OECD in its transfer pricing regulations. These rules are an integral part of the Greek Income Tax Code. The arm’s length principle, central to transfer pricing, is enshrined in this code.
The legal framework in Greece for transfer pricing encompasses several laws and codes:
Greek transfer pricing laws are based on the principles of the OECD Guidelines. Tax authorities must consider these Guidelines when making rulings on transfer pricing matters. The Income Tax Code and the Tax Procedures Code reference and implement the OECD transfer pricing methods, aligning local rules with international standards.
The definition of related parties in Greece is articulated in Article 2(g) of the Greek Income Tax Code (L.4172/2013). It includes persons with direct or indirect involvement in management, control, capital, or who own shares, profit rights, or voting rights of 33% or more, among other criteria.
Greece adopts a three-tier approach to transfer pricing documentation, comprising a Master file, Greek file, and Country-by-Country Reporting (CbCR). The CbCR requirement applies to consolidated groups with a turnover exceeding €750,000,000. Certain exemptions from documentation requirements are available based on transaction values and gross revenues.
Greece maintains a list of non-cooperative jurisdictions for tax purposes, which is updated biannually. The list comprises several countries, and an updated version is expected for 2021. Additionally, Greece identifies jurisdictions with preferential tax regimes, considering any country with a corporate income tax rate equal to or lower than 14.4%.
Greece’s legal framework allows for APAs, which can be unilateral, bilateral, or multilateral and address complex transfer pricing cases. The General Directorate of Tax Audits and Public Revenues (GDTAPR) oversees APA examination. APAs in Greece have a maximum application period of four years and offer double taxation relief.
Tax authorities target taxpayers for transfer pricing scrutiny in cases of tax obligation violations, significant deviations from industry averages, and losses attributed to trading companies.
Greece mandates three types of TP documentation: Master file, Local file, and CbCR. Each file corresponds to specific OECD Guidelines. A Summary Information Table is also required and must include MNE information, functions, risks, and TP methods.
Greece imposes penalties for late filing, inaccurate filing, and non-compliance with TP documentation requirements. Fines can range from a minimum to a maximum, with additional penalties for repeated violations. Failure to submit a CbCR incurs a fine of €20,000, while late or inaccurate CbCRs result in a reduced fine of €10,000.
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