On 12.07.2013 the Greek Parliament voted a new law 4170 entitled «Integration of Directive 2011/16/EE, Regulations of issues pertaining to EL.Τ.Ε., Re-organization of the Legal Council of State and other provisions». With this law several amendments to the existing Transfer Pricing provisions of the Income Tax Code are added. The major points of the new TP Provisions which are included in paragraph 3 of Article 64, are the following:
- There is a new deadline of 16.08.2013 for the preparation of TP documentation and the electronic submission of the Summary Information. The new deadline refers to FYs starting from 1 January 2012 and ending up to 30 May 2013.
- There is a modification explaining the term “affiliated enterprises” for TP documentation purposes, mostly in terms of participation in the share capital of the companies.
From the above, it is clear that the Greek affiliates/subsidiaries of Multinational Groups are mandatory to prepare and submit the Summary Information Sheet to an electronic application by the end of July 2013. The Ministry has already published the relevant Ministerial Decision 1179/18.07.2013 which includes the electronic file (the Ministerial Decision is attached). According to these, the Summary Information Sheet includes critical parts and modules that originally, according to OECD guidelines, are presented to the Transfer Pricing Documentation.
The major information of this Sheet includes the following:
- Number of the Group affiliates and subsidiaries; there is a clustering of companies according to the economic zone, e.g., EU, European Economic Area, Double Tax Avoidance Agreement Countries (ADTC), no ADT Countries etc.
- List of intragroup transactions in which the provider is not charging fees of any kind.
- Analytical information about the affiliates and subsidiaries that the tested company has transactions with (NACE code Rev2, VAT No., country, etc.)
- Functions and Risks undertaken by the Greek affiliate; indicative functions are
R&D, Production, Distribution, Representation, Technical Support, Customer Service, Sales Promotion, Transportation, Storage, Funding, Quality Control,
Administrative Services etc. In addition indicative risks are Business-Commercial
Risk, R&D Risk, Credit Risk, Precarity Risks, Warranties Risk, Exchange Risk, Stock Risks, etc.
- The use of intangibles/tangibles assets with relation to risks indentified.
- Type of Transactions (indicative types are Raw Materials, Products, Merchandise, Royalties, Trade-Marks, Intangibles, Trans-Market Advertising Fees, Administrative Support, Financial, Transactions, Assets Transfer, Technical Support, Leases, Storage, R&D, Subsidy & Deletion Dept, Cost Allocation, etc). In this section it is required to provide the method used for each transaction.
- Declaration for the existence of a Greek TP Documentation.
We remind you that according to the TP legislation, overdue submission of the TP Summary Information is incurring fines up to 10.000 Euros, while the non preparation of the TP Summary Information is incurring fines that could be up to 100.000 Euros. Furthermore, the Tax Authorities is possible to proceed with additional taxes and penalties, by rejecting the documentation of intragroup transactions.
In case you need any further explanation please do not hesitate to contact Mr. Dimitris Melemenis ([email protected]) or Mr. Dimitris Rigas