The Greek authorities have reduced the taxation rate of
dividends from 10% to 5% effective from 1 January 2020 onwards. As
a result, the percentage of the withholding tax on dividends has
been reduced to 5% as well. Certain clarifications to Article 24 of
the Law in question (4646/2019) have recently been issued.
Below is an overview analysis of the application of the new
reduced tax rate and withholding tax rate (5%) in certain cases of
profit distribution
Profits of S.A., Ltd and private
companies
In those type of companies, the decision from the authorized
director (or B.o.D) concerning the distribution of the profits must
be taken after the 1 January 2020 ( for the distribution of 2019
profits ). Alternatively, if this decision is taken before that
date, the tax rate remains at 10%.
