On 23 January 2013 tax Law 4110/2013 was published in the Government Gazette. This new law, apart from some significant amendments on individual and corporate income taxation, sets a new regime for transfer pricing regulations in Greece which replaces the existing one. Specific points include:
The new Law includes an enhanced obligation for Greek affiliated enterprises to maintain transfer pricing documentation for their intra-group transactions. In addition, the Law includes specific deadlines for drafting of documentation and the electronic submission of a summarised table of transfer pricing information to the Greek Tax Authority.
There is an exemption from documentation for certain transactions, based on criteria such as the volume and the nature of transactions. Penalties for typical violations are reduced and thus become more rational compared to the previous regime, which is considered to be a positive development. The previous parallel legislative framework for transfer pricing (Ministry of Finance – Ministry of Development) is abolished, while transitional provisions apply. The new law also introduces a new Greek Advance Pricing Agreement (“APA”) program.