The rules on personal income tax are established according to the tax residence status of the natural person (i.e. resident for tax purposes in Greece or not in Greece) and the application of a special tax regime. Under UK rules, he is not resident, so he is taxable in the UK only on his income from the UK. Mark remains resident in Germany and is therefore taxable there with his worldwide income. The double taxation treaty tells Mark that the UK has the main right to tax income and that if Germany also wants to tax it, the foreign tax credit method should be used to avoid double taxation. People who use the alternative tax method must cumulatively meet the following conditions: If you decide to proceed with a tax advice or service offered, you will receive an offer after which you can decide whether to continue or not. Indirect taxes account for more than 40% of the State`s tax revenues. From the 2020 tax year, a lump sum will apply to the determination of the income tax return in the context of electronic transactions from 1 January 2020. Employees, pensioners, freelancers and other self-employed persons should make expenditure using electronic means of payment within the EU of the E.E.A. amounting to 30% of their real income with a maximum expenditure ceiling of EUR 20 000. Greece: Deloitte International Tax Source online database on tax rates, including information on withholding taxes, tax treaties and transfer pricing.
The Greek withholding income of natural persons subject to the other method of taxation should be declared in the annual income tax return and taxed according to its classification, while their foreign withholding income should not be reportable and should be taxed on the basis of a flat-rate tax. Through our specialized tax databases, we can provide current and historical tax rates, comparative tables and country surveys. We have up-to-date summaries of key facts as well as a detailed analysis of the tax system in jurisdictions around the world, covering corporate, personal, corporate and investment taxation. A new paragraph on the special taxation of athletes and coaches under certain conditions is added. In particular, it stipulates that income of professional athletes from sports companies, departments of paid athletes or recognized sports clubs is taxed at a flat rate of 22%, which exhausts another tax liability, provided that the amounts received in a lump sum or in several payments for a transfer contract or the extension or termination of their contract exceed 40,000 euros in the respective tax year. Otherwise, the regular income tax table applies. * These rates are replaced by the provisions of double taxation agreements that Greece has concluded with other countries/territories. Another common situation when it comes to double taxation is when a person who is not a resident of the UK but has income from the UK and remains a tax resident in their home country. (k) `permanent establishment` means, where used for an undertaking in one of the territories, a branch, management, a factory or other fixed place of business, as well as an agricultural operation, mine, quarry or other place of exploitation of natural resources, but does not include an agency, unless the representative has and habitually exercises a general power to: Negotiate and conclude contracts on behalf of this company, or has an inventory of goods from which it regularly executes orders on its behalf. In order to attract foreign pensioners, the alternative tax system for the foreign source income of people who transfer their tax residence to Greece is being expanded.
In particular, the new provisions offer foreign pensioners the possibility of benefiting from the alternative taxation of all income from foreign sources. Article XVI. —1. Nationals of a Contracting Party shall not be subject, in the territory of the other Contracting Party, to heavier or heavier taxation and related requirements than the taxation and related requirements to which nationals of the latter Contracting Party are or may be subject. If you are a resident of two countries at the same time or if you are a resident of a country that taxes your global income, and you have income and profits from another country (and that country taxes that income on the basis that it is drawn in that country), you may be taxable on the same income in both countries. This is called “double taxation.” Different countries have their own tax laws. Just because you pay taxes in one country doesn`t necessarily mean you don`t have to pay taxes in another country. ARTICLE XV. — (1) The tax authorities of the Contracting Parties shall exchange information (i.e. information at their disposal under their respective tax laws in the normal course of administration) which is necessary for the application of the provisions of this Convention or for the prevention of fraud or for the administration of legislation on tax evasion in the field of taxes which are the subject of the Convention. The information thus exchanged shall be kept secret and shall not be disclosed to persons other than persons involved in the assessment and collection of taxes covered by the Convention. No information as set out above may be exchanged that would reveal trade, commercial, industrial or professional secrets or commercial procedures.
You will probably need to seek professional advice if you are in a double taxation situation. To find a consultant, visit our help page. 2. In this Article, the term “interest” includes interest on a debt bond or any other form of indebtedness, whether secured or unsecured; and “royalty” means any royalty or other amount paid in exchange for the use or privilege of using any copyright, patent, design, process or secret formula, trademark or other similar property, but not royalties or other amounts paid for the operation of a mine or quarry or any other extraction of natural resources. Greece has not yet implemented BePS Action 13 in terms of master file and local file, but has implemented country-by-country reporting (CbyC). This obligation applies to multinational groups (MNEs) whose total consolidated turnover exceeded €750 million in the previous financial year. Companies of these multinational groups of companies that are tax residents in Greece are required to inform the Greek tax authorities of the submission of the CbyC return no later than the last day of the tax year to which it relates. 3. The income, profits and capital of an enterprise situated in one of the territories whose capital is wholly or partly owned or controlled, directly or indirectly, or under the control of a resident resident, shall not be subject to any other taxation, higher or more onerous in the first territory than that to which other enterprises in that first territory are or may be subject. such as income, profits and capital.
In another scenario, a double taxation treaty may provide that non-exempt income is calculated at a reduced rate. You can find out more in HMRC`s HS304 helpsheet “Non-residents – Relief under double taxation agreements” on GOV.UK. 4. For the purposes of this Article, profits or remuneration for personal (including professional) services provided in any of the territories shall be considered income from sources located in that territory and the services of a person whose services are provided wholly or primarily on board ships or aircraft operated by a resident of one of the territories shall be deemed to have been provided in that territory. If a natural person is a tax resident of the United Kingdom and is also a tax resident of another country, i.e. a “double resident”, and the other jurisdiction has a tax treaty with the United Kingdom, the agreement divides a person`s income and profit tax rights between the two countries. ARTICLE VI. — 1. Interest or royalties arising from a resident of the other territory who is subject to tax in that other territory and who has not engaged in trade or operation in the first territory through a permanent establishment situated from sources situated in one of the territories shall be exempt from tax in that first territory.
3. Where an undertaking situated in one of the territories of the other territory carries on a commercial or commercial activity in the other territory through a permanent establishment situated therein, the industrial or commercial profits which would be expected in that other territory shall be attributed to that establishment if it were an independent undertaking carrying on the same or similar activities under the same or similar conditions and under similar conditions normal market. with the company of which it is the permanent establishment.. .