Greece amends TP documentation rules and APAs

Law 4410/2016 introduced amendments on the Greek Code of Tax Procedures and, among other issues, on TP Documentation Rules (article 21 Law 4174/2013) and the legal framework for Advanced Pricing Agreements (art. 22 L. 4174/2013).

Amendments on TP Documentation Framework

The first amendment refers to the deadline for the compilation of the TP Documentation File and the submission of the Summary Information Table (hereinafter referred to as “SIT”).

Instead of the prior deadline of four months following the fiscal year end, according to the new provisions, the TP Documentation File, consisting of the Basic TP File and the Greek TP File, should be compiled until the expiration of the deadline for the submission of the annual corporate income tax return.

The TP Documentation file is accompanied by the SIT, which should also be submitted electronically within the same deadline. This practically means that the deadline now expires after the lapse of six months following the fiscal year end (e.g., for companies with FYE on December 31 2016 the relevant deadline for the compilation of the TP Documentation File and the submission of the SIT expires on June 30 2017, instead of April 30 2017, which was the expiration date, pursuant to the previous regime). This provision is applicable for TP documentation files which are prepared for intragroup transactions of fiscal years commencing on January 1 2015 onwards. 

Moreover, the newly introduced provisions stipulate that a circular will be issued by the General Secretary of Public Revenues, which will provide for a) the calculation method of the turnover and the respective accounting standards and b) a simplified documentation procedure for small and very small entities, as defined in article 2 of Law 4308/2014, as well as certain exemptions from the documentation requirement for very small entities.

Amendments on APAs

The new law also introduces amendments as per the deadline for the issuance of the decision of the General Secretariat approving or rejecting the APA. The respective deadline is extended from 120 days to 18 months.

Finally, the newly introduced provisions prescribe that the General Secretary of Public Revenues is entitled to extend, with a respective circular, the deadline for issuance of the relevant decision approving or rejecting the application for the APA from 18 months to 36 months, following the submission of a relevant request.

Authors:

eftichia small Eftichia Piligou, epiligou@deloitte.gr
Tax Partner, transfer pricing, Deloitte Business Solutions S.A.
  vasiliki small 2 Vasiliki Athanasaki, vathanasaki@deloitte.gr
Tax Assistant Manager, transfer pricing, Deloitte Business Solutions S.A.