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Tax Update

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  • #40761
    admin
    Keymaster
        • Topics: 622
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        • Practcally Cretan
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        Member since: 1st January 2005

        I just thought I would pass on a note I have received from George & Niki Atsalakis – the accountants in Chania who are specialists in helping non-Greeks with their taxes.

        I was asking for an update on the tax situation in Greece as confusion continues as to who has to pay what.

        Their reply was simple – big tax reform is coming in October.

        Let’s see.

        Gerald

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        BullionVault

        #41142
        GT
            • Topics: 6
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            • BIC Junior Member
            • ★★★
            Member since: 12th October 2011

            I have just received the following notification on Ex Pat Greek tax for 2012-2013. Still not 100% clear but may be of interest
            GT

            New Law Regarding Non-Greek tax residents
            POL .1142/2012 AND POL.1145/2012 
            The basic elements are the following:
            An individual is considering Greek tax resident, if stays more than 183 days in a term of a year (par. 1, article 2).
            However, the meaning of residence is different from the meaning of tax domicile, especially when the individual is transferred to non-cooperative countries and countries with preferential tax treatment *(par. 5 & 6, Article 76).
            It is tax residence’s obligation to proof where individual has his/her permant residence (par. 7, Article 61).
            The tax residence must be supported by necessary supporting documentation **(par.8, Article 61 & POL.1145/12).
            Imputed income (cost of living) is not applied for non Greek tax residents, unless they have a income from Greek source. (case. h’, Art. 18).
            Non Greek tax residents lose their tax-relief of 5.000 € if they have income from a Greek source (ex. Rental Income) (§ 12, Article 9)
            The possibility of credit tax paid abroad is given only to countries with which Greece has already signed an Agreement on the Avoidance of Double Taxation – hereafter ADT (par. 8, Art.9). 
            Documentation of tax residence
            As mentioned in paragraph 8 of Article 61 and POL.1145/12, individuals who declare place of residence or habitual residence in abroad must bring the following documentation until 30/11/2012:
            A) a tax residence certificate for countries with which Greece has signed an ADT(.Avoidance of Double Taxation)
            B) a copy of Income Statement and certificate of residence for other countries. 
            Concerning, the fact that, POL.1145 does not clarify whether documentation of tax residence should be made [ch8203][ch8203]on an annual basis or not. This process was not automatic, but it went through the regulatory functions of the Head of Tax for Non –Greek Tax Residents, so there were many people, who remain liable abroad, while having their usual residence in Greece. 

            Notes
            * Countries of paragraph 4 of Article 51A (uncooperative states)
            Uncooperative states are those that are not states – members European Union, and their situation on transparency and exchange information in tax matters has been considered by the Organization for Economic Cooperation and Development (OECD), and:
            a) Have not concluded a contract with Greece of administrative assistance in tax matters and
            b) Have not signed such a contract of administrative assistance with at least twelve other states.
            Such states are: Andorra, Bahrain, Bermuda, Belize, Virgin Islands (BVI), Costa Rica, Hong Kong, Lebanon, Liberia, Liechtenstein, Malaysia, Monaco, Panama, Philippines, Singapore etc.. 
            For those States, even if the person liable for his statement, transfers his residence/ ordinarily residence there, then he is considered to have his tax residence in Greece and so, he is subject to tax on his own worldwide income under the current tax bracket. 

            ** Based on our experience on tax matters in other countries such as England, Holland, Switzerland, Germany and Cyprus, here are some of the documents required of residence:
            1.       Proof of Residence in a Host Nation: Since the most important element of the proof of residence is the time spent abroad, the most powerful evidence is the airline tickets and stamps of the passport for entry and exit from a country.
            2.       Income tax return: the individual must be able to prove that he made an tax return to the country where he has his normal residence and he was liable pay tax on it.
            3.       Supporting documents of Accommodation & Labour: L bour, insurance and permanent residences abroad constitute evidence of change in tax residence. Residence certificate can be issued by Greek embassies and consulates.
            Although, it remains unspecified, whether the documents will be submitted together with the declaration of change or they will be submitted each year

            #41430
            Gem
                • Topics: 27
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                • Practcally Cretan
                • ★★★★★★
                Member since: 28th December 2010

                We’ve had that as well and it doesn’t make any sense to me but I guess the outcome will be, that if you don’t get your paperwork right, you will be fined.

                #41644
                Crete4me
                    • Topics: 12
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                    • Practcally Cretan
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                    Member since: 14th November 2005

                    We’ve heard nothing…yet. Where did you receive the info from?

                    #41801
                    GT
                        • Topics: 6
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                        • BIC Junior Member
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                        Member since: 12th October 2011

                        The info was emailed to me by my accountants office in Kalyves.

                        I must also say it is not very clear, but it appears to me that if you are not working here in Crete and therefore not paying tax, and you can give evidence of taxable income (pensions etc) in the uk ie, P60, then you do not have any tax obligation in Greece (other than the property tax). I read it as saying you dont have to provide proof of the cost of living level to meet the cost of running your house and car, which was peviously in place ie, pink slips from your bank for money transferred from the UK to your Greek bank account. I may be wrong, but hopefully this is the case.
                        GT

                        #41921
                        latsida
                        Participant
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                            #42016
                            x5kmt
                            Participant
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                                • Practcally Cretan
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                                As a non resident, my accountant has directed me to complete the form available here for the Greek year ending 31st December 2011:

                                http://www.gsis.gr/ddos/c_en.html

                                and get it stamped by HMRC in UK. To achieve that it will have to be accompanied by a letter outlining why it is needed. HMRC estimate I should get it back in four or five weeks…..I won’t hold my breath. It looks unlikely it will be back for submission by 31st December 2012!

                                Kathleen

                                #42099
                                DonB
                                    • Topics: 5
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                                    • BIC Junior Member
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                                    Member since: 25th November 2005

                                    Hello,
                                    On the Greek application for double taxation relief from the UK, viz:- "For the application of double taxation convention between Greece and the United Kingdom" there is a line headed "[ch925][ch959][ch956][ch953][ch954][ch951] [ch956][ch959][ch961][ch966][ch951]" / Legal Form.

                                    Do you know what goes into this line? Is it Mr/Mrs/Sir/Lord or something else.

                                    #42169
                                    x5kmt
                                    Participant
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                                        • Practcally Cretan
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                                        I was told to enter ‘Individual’, Don.

                                        Kathleen

                                        #42234
                                        DonB
                                            • Topics: 5
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                                            • BIC Junior Member
                                            • ★★★
                                            Member since: 25th November 2005

                                            Kathleen and Christine,
                                            Thank you for your reply. This was the interpretation of another learned friend I asked the question of. I think I will go with that. FYI
                                            I have been advised that there is only one place in the UK to arrange for an endorsement of the application and that is Liverpool.
                                            Thank you for taking the time to reply.

                                            Don

                                            #42289
                                            x5kmt
                                            Participant
                                                • Topics: 29
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                                                Member since: 12th November 2005

                                                1E3534182F3E3D3F5A0 wrote: FYI
                                                I have been advised that there is only one place in the UK to arrange for an endorsement of the application and that is Liverpool.

                                                For anyone else who needs it, the address is:

                                                HMRC,
                                                PAYE and Self Assessment,
                                                PO Box 1970,
                                                Liverpool, L75 1WX

                                                Kathleen

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