Greece

Covid-19: Law 4772/2021 - The most important tax measures for companies established by the new Law

Our experts have collected the most important tax measures for companies as established by the new Law 4772/2021 (Gov. Gaz. A '17 / 5.2.2021) in order to tackle the effects of the coronavirus COVID-19.

Article 26. Extension of the rent reduction of professional leases

The lessee of a professional lease, for which special measures of suspension or temporary prohibition of operation have been established, for preventive or repressive reasons related to the coronavirus COVID-19 or which is financially affected due to the spread of coronavirus COVID-19, is released from the obligation to pay the total rent especially for the months of January and February 2021 by way of derogation from the existing provisions on leases. The affected companies of the previous paragraph, as well as any other necessary details for the implementation of the present decision are identified per branch and per month by decision A.1025/2021 of the Minister of Finance.

To access the full decision A.1025/2021 in Greek, please click here.

Article 27. Support of landlords from non-collection of rents

Τhe amount of rent that was not collected or is not collected by law in the context of dealing with the effects of COVID coronavirus -19 does not constitute income and is not subject to income tax and special solidarity contribution of article 43 A of the I.T.C. for all the months in which the measure of reduced payment on the monthly rent at a rate of forty percent (40%) has been or will be in force or which has not been collected or is not collected following an agreement between landlord and lessee for exemption from payment by at least thirty percent (30%), in accordance with provisions in the context of tackling the effects of COVID-19 coronavirus.

The provisions of the previous paragraph also apply in the case of rent that has not been collected or is not collected by law in the context of dealing with the effects of coronavirus COVID-19, for the months of the year 2021 during which the measure of complete exemption from the monthly rent was in force.

Article 28. Suspension of deadlines for the expiration, appearance and payment of securities, arrangements for the benefit of avoiding registration of securities in financial behavior data files and suspension of the issuance of payment orders

From 25.1.2021 until 28.2.2021, for the Business Activity Codes (KAD) of the companies that have either suspended their activity in application of regulatory acts of the Government or have been drastically affected by the coronavirus epidemic COVID-19, the deadlines for maturity, appearance and payment of securities due are suspended by seventy five (75) days from the date indicated on each security.

The deadlines for payment of debts certified to the Tax Authorities / Control Centers by VAT declarations with the amount of tax to be paid (debit), are extended until May 31, 2021, for those debts that expire or expired from 1.1.2021 to 31.1.2021. The deadlines for payment of VAT which were certified or will be certified at the Tax Offices / Control Centers on the basis of timely submission of VAT returns with a submission date between 31.1.2021 and 28.2.2021 are also extended until May 31, 2021 for securities bearers meeting certain criteria.

By decision of the Minister of Finance, the deadline of article 297 of law 4738/2020, which concerns the payment of securities, due from companies with a specific Business Activity Code (K.A.D.) and specific turnover, may be further extended in the future for those companies on which insolvency has been confirmed by the paying bank.

An additional deadline is granted until April 30, 2021 for the repayment of securities due by affected companies in the period November and December 2020.

Article 29. Temporary measure of state aid of enterprises in the form of subsidy of fixed expenses

Businesses affected financially by the emergence and spread of COVID-19 coronavirus may be granted aid in the form of a "fixed cost subsidy" in support of non-covered fixed costs of businesses.

The form of the aid, the beneficiaries, the means, the amount, the methodology for determining and the intensity of the aid, the determination of the eligible fixed costs, the eligible period of non-covered fixed costs, the conditions for granting it, the application process , the required data and supporting documents, the procedure for granting the aid, the obligations of the beneficiaries, the mechanism for ensuring that the maximum aid intensity is not exceeded and any other relevant issues for the implementation of this, will be determined by a joint decision of the Ministers of Finance and Labor and Social Affairs , after a suggestion of the Commander of A.A.D.E.

The aid in the form of "fixed costs subsidy" will be unrestrained, tax-free and will not be offset against any debt.

Article 33. Time of acquisition of income from agricultural aids and subsidies and their exemption from the special solidarity contribution of article 43 A of law 4172/2013 (Income Tax Code, KFE) for the tax year 2020

The income obtained from agricultural aids and subsidies that are collected in the tax year 2021, but refer to the tax year 2020, are exempted from the special solidarity contribution of article 43A.

Article 35. Extension of deadlines for collection of excise duty, value added tax and other charges for alcoholics

The collection by the customs authorities of the special excise tax , value added tax (VAT) and other charges, corresponding to ready-to-consume alcoholic beverages and other alcoholic products, which came out of the suspension regime in December 2020 is extended until March 26, 2021

Article 37. Arrangements for the submission of declarations by tax residents abroad for the tax year 2019

Exceptionally, the income tax returns of the tax year 2019 of tax residents abroad that have been submitted or will be submitted until June 30, 2021 are considered timely.

The payment of the tax for the declarations of the previous paragraph, if submitted after the 26th of February 2021, is made until the last working day of the following month from the issuance of the administrative tax determination act.

Any fines and interest imposed due to late submission for declarations submitted after 28 August 2020 are canceled. The interest or fines that may have been collected will be offset with confirmed debts to the Tax Administration and in case there is no debt, they are refunded.

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