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                                       May, 2014

oLaw 4254/2014: What’s new in Taxation?

The Greek Parliament enacted the above Law on March 30th, 2014, (Government Gazette nr. 84 A’/07.04.2014).
Law 4254/2014 includes a series of tax amendments, with the most important amendments affecting the new Income Tax Code (Law 4172/2013), the new Tax Procedures Code (Law 4174/2013) and other tax laws, such as the VAT Code (Law 2850/2000) and the Unified Real Estate Ownership Tax (Law 4223/2013).
More specifically, the main tax provisions of the new law, which apply as of 1 January 2014, unless otherwise specified, are as follows:

1. Income tax changes (Law 4172/2013)
Transfer of real estate
Law 4254/2014, which modified the art. 41 of Income Taxation Code, provides guidelines on how to determine the cost and year of acquisition of real estate property in order to define the taxable capital gain arising from the disposal of such property. 

A general provision is introduced that determines the time of acquisition of real estate in certain cases such as buildings under construction, legalization of illegal constructions etc., whereas the time of acquisition for other cases will be determined by Ministerial Decision.

More detailed rates ranging from 60% to 100% are introduced for computing the taxable capital gain resulting from the transfer of real estate depending on the years of ownership.

      The tax exemption applying to capital gains that do not exceed EUR 25000 applies regardless of whether the seller has carried out other real estate trans
fers.
     Capital gains tax does not apply to transfers of real estate acquired before 1995, while for transfers of real estate acquired from 1995 up to 2002 the capital gains tax rate is further reduced by 20%.

Transfer of Securities
Capital gains tax on the transfer of listed shares is now limited to shares acquired from 1st January 2009 onwards and provided the seller owns at least 0.5% of the underlying company’s share capital.

Losses resulting from the transfer of securities are now carried forward only for five (5) years (whereas the law previously stated that they were carried forward indefinitely).

2. Changes in the Taxation of Capital
Unified Real Estate Ownership Tax
      The most important clarifications/modifications are as follows:
2014 real estate returns (Ε9) are filed by 30 May 2014.
By exception for 2014, real estate returns (E9) which report changes are filed by 30 June 2014.

Special Real Estate Ownership Tax
As from 2014, the exemption from the 15% Special Real Estate Ownership Tax applying to SA companies with registered shares, is extended to SA companies with unregistered (bearer) shares provided that all such shares are ultimately owned by companies whose shares are traded in an organized stock exchange.

      Capital Concentration Tax
   The imposition of capital concentration tax on the establishment of commercial companies, joint ventures, cooperatives and other legal entities whose purpose is the creation of profit, ceases to apply. This provision is effective from the date the law was published in the Government Gazette (i.e. on 7 April 2014).

oEvents and suggestions 

The Greek National Opera Ballet makes its first appearance at the Kallimarmaro Stadium, and presents from June 29th, 2014 “Zorba” by Mikis Theodorakis, a classical work – milestone of modern Greek culture that is renowned throughout the world. The literary hero in Nikos Kazantzakis’ novel Life and Times of Alexis Zorbas is brought to life by the dancers of the GNO Ballet troupe at the unique Kallimarmaro Stadium through Lorca Massine’s grandiose classical choreography. This impressive spectacle is about the imperishable strength of the Greek soul, about the hero-symbol of a distinctive Greece, where the unrestrained momentum of his temperament is transformed through Mikis Theodorakis’ Dionysian music that has journeyed as a synonym of Greece to every corner of the globe. The hero that was spawned by Kazantzakis’ pen is amongst us, to once again speak to us about the power of life and to extinguish his joy and pain in dance (Panathenaic Stadium (Kallimamarmaro), Athens, tel. +30 210 36 12 461).

The dance performance “Still Life” will be presented by Onassis Cultural Centre till June 22nd, 2014. The internationally celebrated artist Dimitris Papaioannou makes his OCC debut with his much-anticipated new work. What has this multi-talented artist got in store for us this time? Whether he is working in Olympic-sized stadiums, old factory warehouses or plush theatres, the choreographer, director and visual artist who left his mark on the opening and closing ceremonies of the Athens Olympics in 2004, continues to spirit us away to austerely beautiful, densely symbolic worlds. 
In this, his latest work, he goes back to where everything starts--the body—and reminds us that art can conjure magic out of the most minimal of means. And the audience watches on, entranced. 
(Onassis Cultural Centre, 107-109 Syngrou Avenue, 117 45 Athens, tel.: +30 210 900 5 800).

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