The Legal Entities (SA, Ltd., Private Capital Companies, non-profit organizations, partnerships) are taxed on profits arising in Greece but also on their worldwide income, while in case of pays tax abroad is set off against the tax that would result in Greece.
But there is a serious possibility, the headquarters of the Legal entity to be abroad, but the Tax Administration to decide that this is for tax avoidance reasons (eg when the administration is in Greece), resulting in the total income acquired abroad, be taxed both in Greece and abroad.
B.1 PROFIT DETERMINATION
In order to generate profits, are deducted from income:
- The costs incurred in the best interests of the company.
- The scientific and technological research expenses (on conditions, heighten costs by 30%).
- Depreciations
- Cost of sales of goods or products (precedes appraisal of the goods or products).
- Doubtful debts (to be considered as expenses, certain conditions must be fulfilled).
- Losses, which are transported for offsetting gains for the next five fiscal years.
B.2 TAX RATES
The profits are taxed at 29% rate. Profits from business acquired by agricultural cooperatives and producer groups are taxed at rate of thirteen percent (13%).
Any revenue flow to the enterprise (dividends, interest, royalties) are taxed at 29%. If withheld tax on earnings, then he set off against the tax payable (Without prejudice to paragraph. B.5.1).
B.3 PRE-PAID TAX
The deposit ensures 100% of the amount of income tax, after having removed any withholding tax amount.
For start-ups, the deposit is estimated at 50% of income tax for the first 3 years (excluding legal entities result from conversion or merger).
B.4 WITHHOLDING TAX
Any legal entity is required to withhold tax on payments made in respect of:
| Form Of Payment | Withholding Tax Rate |
| Dividends | 15% |
| Interest | 15% |
| Royalties (Royalties) | 20% |
| Administration fees & consulting services | 20% |
| Contractor fees | 3% |
| Periodically paid indemnity | 15% |
| Lump sum indemnity up to 40.000,00 € | 10% |
| Lump sum indemnity of more than 40.000,00 € | 20% |
| Goodwill from the transfer of real estate acquired by an individual | 15% |
In case where payments are made to tax resident abroad, then the withholding tax rates provided for the Double Tax Treaties, which have been signed between Greece and the state in which is located the payee.
B.5 SUBMISSION AND TAX RETURNS
The payment of taxes carried out according to the following table:
| Type Of Tax | Taxes Redemption |
| Tax Dividends | With General Assembly 30/6, redemption till 30/9 |
| Tax Interest | Until the last day of the second month following the date of payment |
| Tax Royalties | Until the last day of the second month following the date of payment |
| Payroll Tax | Until the last day of the second month following the date of payment |
| Tax From Entrepreneurship | Until the last day of the second month following the date of payment |
| Tax Contractors | Until the last day of the second month following the date of payment |
| Income Tax | The first dose with the submission in 30/6, the remaining 6 each dose per month. |
B.6 INTRA GROUP TRANSACTIONS
B.6.1 EXEMPTION TAX INCOME IN INTRA GROUP DIVIDENDS
The legal entity located in Greece and receiving intra Group dividends, grant them exemption from income tax provided the one who pays:
- Is a company of the European Union, and referred to in Annex I, Part A of Directive 2011/96 / EU
- Is a tax resident of the European Union
- Subject to state taxation of EU
And the one who receives:
- Holds at least 10% of the value of the legal entity Share Capital distributed
- Maintains a minimum shareholding for at least 24 months
WITHHOLDING TAX EXEMPTION IN SOME INTRA GROUP PAYMENTS
B.6.2 DIVIDEND TAX EXEMPTION
No tax is withheld on dividend payments when the legal entity receives:
- Holds at least 10% of the value of the legal entity Share Capital distributed
- Maintains a minimum shareholding for at least 24 months
- Is a company of the European Union, and referred to in Annex I, Part A of Directive 2011/96 / EU
- Is a tax citizen of the European Union
- Subject to state taxation of EU
