Greece Replaces Stamp Duty with New Digital Transaction Fee for 600 Transactions

The Greek Finance Ministry has introduced a legislative initiative in parliament that abolishes the Stamp Duty for 600 transactions and replaces it with a Digital Transaction Fee, where still required.

The Minister of National Economy and Finance, Kostis Hatzidakis, stated that the new draft law for the Digital Transaction Fee is another step in the direction towards the modernization of the county’s tax legislation, simplifying and digitizing the process.

The minister further emphasizes that the initiative will benefit taxpayers by promoting regulations that benefit society such as tax deductions for donations to the state and the exemption of agricultural fuel from the Special Consumption Tax (SCT).

What is more, the newly established electronic tools will facilitate the audit work of the Independent Authority for Public Revenue (AADE) to curb tax evasion.

The new regulations regarding the stamp duty include the abolition of the Stamp Duty on transactions such as loan agreements, insurance transactions, the formation and capital increase of non-profit legal entities, bank letters of credit for importers, and contractual interest on loans and credits.

It is also set to abolish more than 100 transactions involving stamp duties on fees for marriage licenses and professional licenses.

Furthermore, it includes the abolishment in over 500 transactions where a 2.4% or 3.6% Stamp Duty was imposed on fees related to legal entities under public law or the state.

The new Digital Transaction Fee will be introduced and applied to transactions specified by law, regardless of where they take place, as long as at least one party has tax residency or a permanent establishment in Greece. No exemptions will apply, and these transactions will not be subject to other indirect taxes.

The Transaction Fee for transactions between private individuals will be certified after an electronic declaration is submitted via a new digital platform to be launched by AADE. The declaration and payment of the Fee must be made by the end of the month following the transaction.

Source: tovima.com