How can we help you?

Our experienced team is always ready to serve you.

Our company has been working with EFM for the past ten years. We engage in the wholesale market of machinery in all regions of Greece. When we started our collaboration with EFM, Mr. Koliothomas and his associates, I can’t say that I didn’t have some reservations about whether outsourcing my company’s accounting department would work, because up to that time, I had a permanent employee in this position for 20 years.
Now, 10 years into our collaboration, I regret not having done this earlier. For me, EFM is today a valuable partner with deep knowledge and exemplary client service, both in tax consultancy subjects and in a great variety of other consultancy services.
I would like to warmly thank my valuable partner, Mr Thomas Koliothomas, and his entire team for what they do for me on a daily basis.

Stavros Passalis, Athens
, Wholesaler of machinery

Download our brochure about EFM training services

Context of obligations for legal entities

Reporting obligations of intragroup transactions (Article 21 of Tax Procedure Code)

Compliance of documentation file in values of intragroup transactions and submission of a summary information table

(«summary table of information») of intragroup transactions

Which debtors concerns?

From compliance of documentation file and submitting Summary of Information Table are exempted legal entities made transactions with associated persons up to € 100mm. cumulatively, provided that the gross income of the debtor does not exceed of € 5 million. If the gross income of the debtor exceed € 5 million. The above threshold is set at € 200 thousand. The same obligations are relating to the foreign branches and joint ventures (Pol.1142/2015)

Which debtors does not concern:

  • Pol.1142/2015: The legal entities which are exempted from income tax (Article 46 of the law N.4172/2013):
  • The general government entities
  • The Bank of Greece
  • The portfolio investment companies and UCITS (Undertakings for Collective Investment in Transferable Securities) established within the country or in another EU or EEA -Member
  • International organizations, on condition of reciprocity , and
  • The HRADF.
  • Pol.1093/2015: The commercial and industrial enterprises that are subject to the provisions of AN.89/1967(N.3427/2005)
  • Pol.1060/2015: The offices or branches of foreign shipping companies which are settling in Greece in accordance with the Article 25 of N.27/1975
  • Investment in real estate companies

Deadlines (N.4410/2016)

  • The documentation file is drawn up until the deadline for submission of the annual statement of income tax debtor
  • The same deadline applies to the submission of Summary of Information Table in GSIS.

 

Under consideration intragroup transactions

  • All, without exception, value or nature (eg raw materials, own products, goods, charges for all forms of services, fees for intangible assets, financial transactions, rents, cost allocation)
  • In the case of financial transactions, subject of documentation is accrued interest (debit / credit)
  • More importantly, the requirement of documentation applies to situations of «transfer of functions»
  • Under the Article 51 of the ITC made for first time reference to Greek tax law the concept of «transfer package»
  • As «transfer package» considered to be the whole of functions, assets, risks or business opportunities reorganized, transferred or acquired in a domestic or cross-border
  • The taxpayer must provide evidence that the transport or transfer of functions, assets and risks or business opportunities (including associated persons) held under the terms consistent with the ‘arm’s length’ principle.

Transfer of Functions
(Article 51 of ITC)

  • If the taxpayer is unable to provide such evidence, the tax authorities may set a pact with the principle of arm’s length price for the «transfer package»
  • The transfer or grant of license of goodwill or intangible assets in business restructuring should therefore be made for a fee in line with the principle of arm’s length and taking into account the total value of the transfer package.

Documentation File
(Pol.1097/2014 & 1114/2014)

The documentation file of a debtor consist of:

    1. The «Basic Documentation File» which is common to all companies in a multinational group to which the debtor belongs and contains common information about the debtor and its related entities (including permanent establishments of the group) , and
    2. The «Greek Documentation File», which contains more specific information about the debtor and its transactions with affiliated parties

    The documentation file is kept on the debtor’s premises for a period equivalent to the obligation to keep books and records of the tax year. When required should be made available to the tax authorities within 30 days.

Intragroup TransactionsChoose one of the following Intragroup Transactions categories

CONTEXT OF OBLIGATIONS FOR LEGAL ENTITIES

EFM offers you solutions with guaranteed quality certification based on European Standards