Global Tax Alert (News and views from Transfer Pricing) | 25 June 2013
Greece proposes amendments to transfer pricing legislation
A Draft Law1 amending Greece's transfer pricing legislation and applicable to the 2012 fiscal year was submitted to the Greek Parliament for approval. If approved, the law will extend the deadline for preparation of the Transfer Pricing Documentation File and submission of the Summary Table for Transfer Pricing Information. It also would amend the definition of associated enterprises for transfer pricing purposes.
The Draft Law proposes to amend the relevant provision introduced with L.4110/2013, regarding the deadline for the preparation of the Transfer Pricing Documentation File as well as the submission of the Summary Table for Transfer Pricing Information. For any fiscal year beginning on 1 January 2012 and ending by 30 May 2013, the obligation of drafting the Transfer Pricing Documentation File as well as filing the Summary Table for Transfer Pricing Information before the General Secretariat of Informative Systems (GSIS) which includes company's functional profile, a list of the intercompany transactions subject to documentation and the appropriate transfer pricing documentation method, is proposed to be extended until 10 July 2013 (from the original deadline of 10 May 2013). Without the timely issuance of the corresponding Ministerial Decision, this extended deadline may still create practical difficulties for taxpayers.
In addition to the deadline extension, the Draft Law amends the definition of associated enterprises for the application of the Transfer Pricing provisions. Based on the proposed provision, the term “associated enterprises” refers to enterprises that are:
- • Affiliated due to the participation of one enterprise in the other, holding directly and indirectly, shares, partnership units or equity participation of at least 33%, based on value or number of profit rights or voting rights;
- • Affiliated to any other enterprise holding directly or indirectly shares, partnership units, voting rights or equity participation of at least 33% based on the value or the number of profit rights or voting rights in one of the affiliated enterprises; or
- • Affiliated to any other entity with which there is a direct or indirect significant management dependence or control or such entity exercises decisive influence on or may significantly influence the company's decision making or when both entities have an exclusive direct or indirect relationship of material management dependence or control or may be under significant management influence by a third party.
The Draft Law further proposes to eliminate the reference of the exclusive deadline of one month regarding the issuance of the Ministry of Finance Decision regulating the details and defining the responsibilities related to the audit performance by the Tax Office for Large Enterprises, and determining:
- • The content of the Transfer Pricing Documentation File and the Summary Table for Transfer Pricing Information;
- • The language used in the aforementioned information, the transfer pricing methods, approaches and procedures followed in order to determine the prices charged in these transactions; and
- • The update procedure of the transfer pricing documentation files, as well as any other relevant detail.
It appears that the elimination of the above reference to the exclusive deadline leads to the conclusion that a Ministerial Decision shall be issued defining all the above (a decision has not been issued to date, likely due to the lapse of the aforementioned initial deadline).
1. Integration of Directive 2011/16/EU, Regulation issues of Hellenic Accounting and Auditing Standards Oversight Board (ELTE), Reform of the Legal Council of the State Organization and other provisions.
For additional information with respect to this Alert, please contact the following:
Ernst & Young Business Advisory Solutions S.A, Athens
- • Alexandros Karakitis
+30 210 2886 415
- • Christos Kourouniotis
+30 210 2886 378
- • Stefanos Mitsios
+30 210 2886 363
EYG no. CM3558