oNew Investment Law A new tax law, nr. 4141/2013 (“Investment Tools for Development, Financing and other provisions”), amending the Income Tax and VAT laws has been voted by the Greek Parliament and published in Government Gazette nr. 81/A/ 05.04.2013. Indicative provisions of this law are the following: a. Individual Taxation Greek tax residents who intend to transfer their residence or their habitual abode to countries with a preferential tax regime can now do so immediately (without waiting five (5) years from the submission of the relevant application as until today) provided they can prove that they indeed have or will have their tax residence or habitual abode in such countries. A non-Greek tax resident who earns actual income (i.e. not solely deemed income) in Greece is obliged to accompany his/her personal income tax return with either a residence certificate issued by his/her foreign tax authority or a copy of his/her tax return as submitted to such authority or assessment note issued by such tax authority in order to support his/her non - Greek tax residency status. The provisions relating to the preparation of a Wealth or Capital Statement (Register of Assets) will apply only to those individuals who are Greek tax residents and not to all individuals holding a Greek tax registration number. b. Corporate The new depreciation rates regarding assets, as introduced by par. 22 of art. 3 of Law 4110/2013 will apply to all fixed assets acquired from 1 January 2013 onwards. The new depreciation rate of 10% will apply for capitalized expenses as well. The provisions of par.2 of art.13 of Law 2238/1994 regarding taxation on the sale of non listed shares of Greek or foreign SA companies are still in force for shares acquired before 30 June 2013 (5% tax on the sale value). If no tax was remitted on transfers of non listed shares that took place within the period of 23 January 2013 up to the publication of the Law, the applicable tax should be remitted within one (1) month from the publication date of this Law with no penalties. c. VAT Law The provisions of the Greek VAT Code as of 1 January 2013 are amended as follows: The new provisions stipulate the place of taxation in case of means of transportation and yachts which are hired by non taxable persons. The mere transportation of goods to another Member – State for the sole purpose of valuation or the carrying out of additional work is not considered a supply of goods on condition that such goods are returned to Greece. The collection of an advance payment related to an intra community supply of goods is not subject to VAT. oPrivate Capital Company A new partnership form has been established by Law 4072/2012 (published in Government Gazette nr. 86/A/11.04.2012, Articles 43 to 120), which was applied from 11.06.2012, and Circular K1-1084/ 05.24.2012, named Private Capital Company. All Private Capital Companies are founded by the One Stop Service (Law 3853/2010 published in Government Gazette nr. 90/A/ 18.06.2010) even if an additional approval or decision is required for the initiation of their operation or not (e.g. permission for health stores) and they are registered in the National Commercial Registry (GEMI). A Private Capital Company is a new more simple and more flexible corporate form, resembling to Limited Companies. It is a capital company and the liability of its members for company debts is limited, except for those with a guarantee contribution. It is considered to be a commercial company even if the business scope is other than trading.
The main characteristics of the Private Company are the following:
The minimum capital provided is one (1) euro. The members however can decide on a larger capital either when forming the company of at a later stage, by increasing the capital. The partners participate in the company’s capital, according to articles 35-38 of law 4072/2012 either in capital or in non-capital or guarantee contributions. It’s duration may only be definite. In case no such duration is provided in the articles of incorporation, then the duration is defined, by law in twelve-year. The duration can be extended if the majority of the members so decide. The articles of incorporation, and their amendments, in case they are private documents, as well as the company minutes, may be drafted in any of the official languages of the European Union. However, the Memorandum and Articles of Incorporation may only be in Greek or in English and the Greek version of documents always prevails against any other language. It can be formed by a private document, unless a notarial act is required either in case assets contributed to the company require a notarial act for their transfer (e.g. real estate property) or the parties so prefer. The company shall within one (1) month of its incorporation acquire a company website were the following data should be posted by responsibility of the administrator, i.e. its name, capital, the total of its guarantee contributions, according to article 38, its registration number at G.E.M.I., its seat and exact address, in case the company is under liquidation this must also be posted, the names and addresses of its partners as well as the contributions of each one of them, and its administrator data.
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