Our experts in Greece provide the following summary of the country's legislative changes over the past two weeks as the economic crisis continues.

1. Income tax return

The deadline for submission of the Income Tax Returns of legal entities and individuals has been extended until today, 4 September 2015. No penalties of article 4174/13 will be imposed for late submission, only 0,73% for late payment.

2. Advance payment

Increase of the advance payment on income tax:

i) For individuals (55% til 31.12.2014)

(1) 75% advance payment in 2015

(2) 100% advance payment in 2016

ii) For legal entities (80% til 31.12.2014)(1) 100% advance payment with retroactive effect from 01.01.2014.

3. VAT

Clarifications have been given by the Ministry of Finance regarding the exemption of 23% VAT of the education services provided by bodies governed by public law and legal entities of non-profitable organisations. The pre-school education services are exempted.

As of 1 October 2015 the format of the VAT form changes.

4. Tax on property

We are expecting the decision regarding the issue of tax on properties which, as it is rumoured, will be the same as the 2014 prerequisites.

5. Import tax

The 26% withholding tax on companies from Cyprus, Bulgaria and Ireland (countries with preferential tax regime) is abolished.

6. Discussions (to be commenced in the near future)

a) The possibility of imposing tax on properties that are owned by residents outside of Greece (in case tax is not paid there) as well as the foreign bonds.

b) The obligation to obtain a VAT number for newborns.

c) During the data verification process regarding the tangible and intangible assets  ("Periousiologio") of all taxpayers, they will be asked to declare any undeclared income that is not justified by the relevant declaration ("pothen esxes").

For this income a tax will be imposed which should have been paid according to the tax scale that was valid during the period the income was generated. The same applies for the deposits that are held in foreign banks originating from undeclared income. Finally, the same will apply for the assets of which possession is not justified by the "pothen esxes".

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.