• Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 1/9/2014

Greece - Foreign tax credit changes 

January 9:  Changes to the foreign tax credit rules in Greece expand the availability of credits.

Previously, Greece allowed a foreign tax credit only with respect to foreign taxes paid to countries that have, in force, an income tax treaty with Greece. Law 4223/2013 amends these rules.

Foreign tax credits for 2012 and 2013

Under article 18 of Law 4223/2013, taxpayers with foreign income earned during calendar years 2012 and 2013 and subject to foreign tax are allowed a tax credit against their Greek tax for the amount of foreign taxes paid to a country on such income.

However, no credit is allowed for foreign taxes paid on income arising in any “non-cooperative country” or in those countries having what is determined to be a “preferential tax regime” for 2012 and 2013.

Foreign tax credits for 2014

For income earned as of 1 January 2014, a foreign tax credit is allowed “unilaterally”—i.e., for taxes paid to any foreign country, including non-cooperative countries or countries with a preferential tax regime.

Read a January 2014 report prepared by the KPMG member firm in Greece: Foreign Tax Credit

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