Worldwide transfer pricing reference guide 2014

Greece (continued)
Transfer pricing penalties (continued)
• When the intragroup prices are considered to be undocumented, the relevant tax authorities proceed with their determination on the
basis of data available from every provided source. In cases where the range of prices or profits is not acceptable to the tax authorities,
the intragroup prices are set to the median price of the range re-established
• Companies operating in Greece with related parties should apply terms and conditions to those transactions that do not unjustifiably
differ from those which would be agreed to between independent third-party enterprises for the same or similar transactions (arm’s
length principle)
• In case of violation of the relevant provisions, the difference in taxable profits shall increase the gross revenue of the company.
In addition, penalties ranging from 10%–100% of the tax underpayment will apply, depending on the materiality of the tax adjustment
and default interest on the amount of the tax liability due
Penalty relief
No penalty relief is available.
Documentation requirements
To show compliance with the arm’s length principle, the taxpayer should make the documentation files available within 30 days of a
request from the supervising authorities.
The transfer pricing file as per Ministerial Decision 1179/2013 consists of:
• The Masterfile, which is common for all group companies and contains common standardized information for the group affiliates as well
as for the branches
• The Local File (Greek File), which is supplementary to the Masterfile and contains additional information regarding the Greek companies
of the group, the permanent establishments of the foreign entity in Greece or the permanent establishments of the Greek entity abroad
Documentation deadlines
There is no specific deadline to prepare the transfer pricing documentation file. However, after the relevant fiscal year end the taxpayer
should be able to present the transfer pricing file to the audit authorities within thirty (30) days following their request.
Statute of limitations on transfer pricing assessments
Taxpayers must keep documentation files for a period equal to the prescribed period of the State’s right to impose tax (statute of
limitations), as specified by the provisions of the tax legislation. As a general rule, the Greek State’s right to impose tax is limited to five
years, but the State provides extensions on the above mentioned period.
Return disclosures/related party disclosures
Taxpayers should disclose their intragroup transactions by filing annually a SIT of transfer pricing information as follows:
• For fiscal years ending 31 December 2012 and after, within four months from the year end
Transfer pricing-specific returns
Greece does not require a separate return (including information return) for related party transactions.
Frequency of tax audit and transfer pricing scrutiny by the tax authority
According to Article 82 par. 5 of Law 2238/1994, certified auditors are obliged to issue a Tax Certificate to the companies they audit
by performing a special audit in their tax affairs taking place in parallel with the statutory audit. Based on this, the transfer pricing
documentation file should be available to the certified auditors prior to the issuance of the Tax Certificate.
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