2017 Fiscal Package
The 2017 Fiscal Package has been approved by the Parliament on
15 December 2016 and published in the Official Gazette on 27
December 2016, except for the changes to Income Tax Law (law no.
8438/1998) which are still to be proclaimed by the President and to
be published.
We are highlighting below some of the important changes
introduced with this Fiscal Package.
Income Tax (law no. 8438/1998 "On Income Tax")
An additional thin capitalization rule is introduced aiming to
limit the financing of taxpayers through debt instead of
equity.
Specifically, in case of loans and funding from related parties,
the 'net interest expense' will be considered deductible up
to 30% of EBITDA (Earnings Before Interest Tax Depreciation and
Amortization). Net interest expense means the interest expense less
the interest income, within the tax period. The taxpayer has the
right to carry forward the non-deducted part of the interest and
claim its tax
