AADE

The abolition of the Paper Stamp Charge for over 600 transactions and its substitute by the Digital Transaction Charge for all transactions that can live on, introduced the Minister of Nationwide Financial system and Finance Kostis Hatzidakis.

This reform issues the modernization and simplification of a legislative framework that has been in impact since 1931, its full digitization and its abolition -where necessary-, whereas it’s a dedication of the nation and a milestone within the Restoration and Resilience Plan. Continual problems with ambiguity are additionally addressed.

In additional element, the draft legislation, which is predicted to be instantly submitted to public session, promotes seven modifications:

• the Stamp Charge is abolished and changed with the Digital Transaction Charge,
• greater than 600 circumstances of imposition of the Stamp Obligation are definitively abolished,
• The transactions on which the Digital Transaction Charge will likely be imposed are explicitly talked about, the declaration, calculation, certification and assortment of which will likely be accomplished completely digitally via a particular platform of AADE,
• its imposition on transactions falling inside the scope of software of different oblique taxes is expressly excluded,
• it’s outlined that the Charge is imposed on transactions, the place at the least one transaction celebration is a tax resident of Greece or has a everlasting institution in Greece, whatever the sort and placement of the transaction,
• it’s clarified who’s liable to pay the tax,
• a single time of fee of the Charge is set.

The issues of the present framework

The present framework for Stamp Obligation is to a big extent advanced and infrequently creates software difficulties for merchants. A number of the issues of the present framework are the next:

The Stamp Obligation is imposed on contracts drawn up in Greece, with the consequence that its fee may be averted by merchants who merely draw up the corresponding contract overseas.

Additionally, the present framework doesn’t explicitly point out the kinds of contracts on which it’s imposed, however typically covers these contracts that aren’t topic to different types of oblique taxation, with the consequence that there isn’t a authorized certainty in relation as to whether or not a contract is topic to Stamp Obligation.

The authorized uncertainty can also be exacerbated by the anomaly concerning who’s chargeable for the fee of the Stamp Obligation and the way the declaration and fee is made.

What modifications with the brand new framework?

Any more, the brand new Digital Transaction Charge will likely be imposed on transactions, whatever the place of their completion, so long as at the least one contracting celebration has a tax residence or everlasting institution in Greece and there’s no cause for exemption for the contracting events. These transactions:

• are expressly named within the legislation,
• are usually not topic to different oblique taxes.

Abolition of Stamp Obligation

It’s famous that with the proposed provisions, the Stamp Obligation is abolished in additional than 600 circumstances of transactions:

• In additional element, the Stamp Obligation is abolished in a lot of essential transactions akin to: utility mortgage, insurance coverage transactions, institution and capital improve of non-profit authorized individuals/entities, assured financial institution credit in favor of importers, contractual curiosity on loans and credit.
• Moreover, it’s abolished in additional than 100 transactions involving stamps on receipts (eg marriage license, skilled licenses, and many others.). Necessary be aware: The abolition of the Stamp Obligation doesn’t entail the abolition of the tax for the transactions in query. Nevertheless, it results in a discount within the remaining burden.
• It’s also abolished in additional than 500 transactions wherein a Stamp Charge of two.4% or 3.6% was imposed on reservations regarding NPDD or the State (e.g. Stamp on Reservations in favor of the Nationwide Medicines Group (EOF), in favor of TACHDIK ( Courtroom Constructing Financing Fund), in favor of EADISY (Impartial Public Procurement Authority) Ms.

Declaration and return of Digital Transaction Charge

The Transaction Charge for transactions between non-public people will likely be verified with an digital declaration via a brand new digital platform that will likely be put into operation by AADE. The declaration and return of the Charge is made by the tip of the next month from that of the transaction.

Excluded are the circumstances the place there’s an obligation to withhold revenue tax (its certification and fee relies on the withholding tax deadlines), rents (its fee is made via the submission of the Revenue Tax Declaration) and the case of a present account (the declaration and the return is made inside the first month of the next tax yr).

For transactions with the State, the Transaction Charge is paid electronically earlier than the related act is drawn up or issued.
Digital Transaction Charge Components

It’s famous that the coefficients of the Digital Transaction Charge for transactions between people are clarified and outlined as follows:

• 3.60% on all actual property rents, on invoices for the gathering of compensation for authorized curiosity and late fee curiosity and on transactions or contracts between pure individuals who don’t perform a enterprise exercise and individuals who perform a enterprise exercise and are contracted for acts not associated to it in addition to within the circumstances the place one contracting celebration is the State, Municipality, NPDD.
• 2.40% so long as all of the contracting events or transactors perform enterprise exercise, or at the least one has the authorized type of SA, EPE and IKE.
• 1.20% whether it is for fee of charges to pure individuals or members of administration and for deposits or withdrawals from the funds of authorized individuals and entities.
• 0.30% on checks offered (“plates”) to credit score establishments.

Digital Transaction Charge for loans, deposits and withdrawals

Loans topic to a Transaction Charge (loans between people/corporations which aren’t banks) are topic to a most Transaction Charge of 150,000 euros per mortgage contract, no matter the place the mortgage was taken out. On this method, the explanations for circumventing the laws will now not exist. Thus, the federal government will accumulate the charges that till now it misplaced because the related contracts have been concluded overseas. The burden on corporations and people will likely be at cheap ranges.

In additional element, they’re topic to a Transaction Charge:

• with a charge of three.6% for loans between people,
• with a charge of two.4% for loans between pure or authorized individuals who each perform enterprise exercise or the place at the least one contracting celebration is a SA, EPE or IKE,
• with a charge of 1.2% the entries within the books of authorized entities concerning deposits and withdrawals.
• with a charge of two.4% the bond loans of Legislation 4548/2018 except they’re traded on a regulated market or multilateral buying and selling mechanism.

It’s famous that contractual curiosity on loans is excluded from the Charge.

The statements

The Minister of Nationwide Financial system and Finance, Kostis Hatzidakis, acknowledged: “With the proposed draft legislation, we try one other reform of residents’ every day lives, in addition to modernizing the operation of the Public Administration. We’re leaving prior to now, the place it belongs, the outdated present framework for the Stamp Obligation that dates again to 1931. And we’re harnessing new applied sciences to handle decades-old pathologies which have prompted confusion for residents and ambiguity within the software of tax legislation. We’re persevering with the trouble for the general modernization of our tax system whereas, on the identical time, abolishing the duty to pay this Charge for over 600 transactions that positively have an effect on the pockets of residents and companies.”

The Deputy Minister of Nationwide Financial system and Finance Christos Dimas famous: “It’s a measure geared toward liberating residents, professionals, companies and the State from bureaucratic procedures that burdened them till at this time. The aim of the regulation is to modernize the legislative framework for the imposition of tax on transactions, to simplify and digitize the method, to rationalize the premise for imposing the tax on transactions, in addition to to scale back administrative burdens.

The Governor of the Impartial Inland Income Authority, George Pitsilis, mentioned: “The substitute of the antiquated nineteenth century Stamp Obligation with a contemporary Transaction Charge, which applies to particular transactions, identified upfront to taxpayers, and is delivered digitally, is doubly helpful for taxpayers. residents and companies. It gives authorized certainty, eliminating causes that prompted friction with the Tax Administration and appeals to the courts, and on the identical time saves taxpayers from inconvenience, as it’s paid merely and rapidly, with a digital course of. The brand new Transaction Charge is a vital step in modernizing our tax system.”

Supply: ot.gr