Transfer pricing in Greece at a glance
|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.
Rules for transfer pricing in Greece follow the OECD Transfer Pricing Guidelines.
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.
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
- 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
Rules for transfer pricing in Greece provide for Advance Pricing Agreement (APA) options as per 1st of January 2014.
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)
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.