In a move towards reinforcing its commitment to international tax transparency, the Greek Ministry of Development and Investments has embarked on a public consultation for a draft bill implementing the Public Country-by-Country Reporting (CbCR) Directive. Launched on October 19, 2023, this initiative signifies Greece’s dedication to aligning with global tax reporting standards.
Key Developments in the Draft Greek Public CbCR Bill:
Alignment with the Directive:
The provisions within the Greek bill closely mirror the text of the Public CbCR Directive. This alignment highlights Greece’s commitment to adhering to a standardized approach in international taxation.
No Safeguard Clause:
Notably, the draft bill excludes the provision to apply the “safeguard clause.” This decision reinforces a commitment to comprehensive reporting without compromising competitiveness, aligning with the directive.
Website Publication Exemption:
Greece is set to adopt the website publication exemption. In-scope companies will be exempt from publishing the CbCR report on their websites if the report is already publicly available to any third party in the EU, free of charge, on the commercial registry’s website. This move streamlines reporting obligations while ensuring accessibility.
Applicability and Timeline:
If approved in its current form, the draft rules will be applicable for financial years starting on or after June 22, 2024. This forward-looking timeline provides companies with clarity for compliance preparation.
Background and Consultation Process:
Member States were required to implement the Public CbCR Reporting Directive by June 22, 2023. However, Greece and thirteen other Member States faced formal notice from the European Commission on July 20, 2023, for failure to notify the transposition of the Directive into domestic legislation. The ongoing public consultation, ending on November 1, 2023, reflects a proactive effort to gather insights from stakeholders.
Recent Update on Greek Non-Cooperative Jurisdictions:
Adding a layer to the tax legislation, the Greek Ministry published the updated list of non-cooperative countries for fiscal year 2022 on October 25, 2023. Notably, Angola, the British Virgin Islands, and Nicaragua were added, while Barbados and the Maldives were removed from the previous list for the financial year 2021.
In Greece, payments to tax residents of non-cooperative jurisdictions or tax residents of jurisdictions with a preferential tax regime are not deductible for tax purposes. Exceptions apply where the taxpayer can prove that these expenses relate to actual and usual transactions that do not result in tax avoidance.
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