Transfer pricing in Greece

Transfer pricing in Greece at a glance

Regulation Type OECD
Are there specific transfer pricing regulations? Yes
Submission deadline No later than 4 months after the end of each fiscal year
Submission deadline upon request 30 days
Annual update required Yes
Official language requirements Greek and/or English
Potential impact of penalties Between €1.000 and € 10.000

 

Greek tax law

Rules for transfer pricing in Greece are based upon:

  • Law 2238/2013, as amended by L.3775/2009, 
L.3842/2010 and L.4110/2013;
  • Law 4172/2013 (new Income Tax Code applicable from 
1.1.2014), Law 4174/2013 (Tax Procedures Code, also 
applicable from 1.1.2014);
  • Law 3728/2008 for transactions realized in FYs 2008, 
2009 and 2010, and
  • Ministerial Circulars 1179/2013, 1220/2013, 1284/2013, L.4170/2013, and L.4182/2013.

OECD

Rules for transfer pricing in Greece follow the OECD Transfer Pricing Guidelines.

Methods

Accepted methods

Accepted methods are:

  • the comparable uncontrolled price method
  • the resale price method
  • the cost plus method
  • the profit split method
  • the transactional net margin method

Priority of methods

Rules for transfer pricing in Greece do not prescribe any specific method, however, the traditional transaction methods are preferred over the transactional profit methods.

Documentation requirements

Information that should be included in the documentation:

  • A general description of the taxpayer’s group
  • A general description of the group’s business activities 
and business strategy, including any changes to the business strategy in comparison with the previous fiscal year
  • A general description and implementation of the group’s transfer pricing policy
  • A general presentation of transactions concluded between the Greek subsidiary and its associated parties
  • A general description of the functions performed and the risks assumed by the associated parties, including any changes in comparison with the previous fiscal year
  • Ownership of intangible assets that belong to the group, and royalties paid or received for such assets
  • A list of APAs concluded between group entities and foreign tax authorities, if any
  • Detailed information regarding the Greek taxpayer
  • A description of the transactions that were concluded 
between the Greek subsidiary and the associated parties, 
and for which a documentation obligation exists
  • A comparative analysis (including functional analysis, 
economic circumstances, etc.)
  • A description of the adopted transfer pricing method 
and argumentation for that selection

Language

  • Greek, for all documentation on Greek entities
  • Greek or English for all documentation that refers to group-related information 

Requirements to prepare documentation annually

Documentation should be provided for annually together with the annual Tax Compliance Report.

Submission deadline upon request by tax authorities

Upon request, documentation should be submitted within 30 days after a request has been made.

Advance Pricing Agreements

General

Rules for transfer pricing in Greece provide for Advance Pricing Agreement (APA) options as per 1st of January 2014.

Terms

The term of agreement for signing an APA may not exceed four years, however, the agreement can ben renewed twice for a period of two years. (Meaning a total of 8 years with renewing of the APA)

Penalties

In the case of non-submission of the Transfer Pricing Documentation File to the tax authorities within the provided deadline of 30 days, a one-off penalty calculated at 0.1 percent of the taxpayer’s revenue is imposed. However, the penalty cannot be less than € 1.000 and cannot exceed € 10.000.

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