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In the Parliament n / s of YPOIK with innovative tax incentives for the development of companies through collaborations

The draft law: “Incentives for Business Development, through partnerships and corporate transformations” was submitted to the Parliament by the Minister of Finance, Mr. Christos Staikouras, which is a reform of the National Recovery and Sustainability Plan “Greece 2.0”, which reports to the Deputy Minister of Finance. , Mr. Thodoros Skylakakis. The purpose of the legislative initiative is to provide important and innovative incentives for the creation of economies of scale, through transformations of very small, small and medium enterprises and personal collaborations, for all sectors of economic activity.

The motives of the bill concern all forms of transformations, including the case of contribution of a sole proprietorship in any form of company, as well as collaborations of persons, either in the form of binding contracts – agreements or the joint establishment of new companies.

In particular, there is an incentive for the 30% exemption from the payment of income tax on the taxable profits of the new company or the cooperating person. In the case of collaborations of natural persons by profession farmers, this exemption amounts to 50%.

It is noted that the exemption is provided under specific conditions regarding the turnover and size of the transformed enterprises (very small, small and medium enterprises are occupied), while a maximum time is set for which the benefit is granted (nine years), a maximum of total benefit by case of transformation or cooperation and exceptions, such as construction consortia.

In the case of a business transformation or a sole proprietorship contribution, the tax benefit may not exceed the total amount of EUR 500,000, for a period of up to nine years from the date of application of the tax exemption.

The tax incentives included in the bill include the exemption from income tax, in case of transformation, the goodwill from transfer of fixed assets of the new company to a third party, the exemption from any tax burden including stamp duty and income tax. any transaction related to the transformation, for the cases of transformations of the new law and the, under certain conditions, the recognition of the deduction of all expenses of the acquiring company, which are carried out for the purpose of acquiring corporate participations.

All the above benefits are used, exclusively, for the transformations that will result from the present proposed law and their simultaneous use is not allowed for transformations with other development laws, including the transformations of the Income Tax Code.

In addition, the bill improves the tax incentive provisions of previous development laws. Specifically, it is now foreseen the transfer of losses from the transformed companies to the balance sheet of the new company for the transformations of law 2166/1993. An exemption from the capital accumulation tax is established, under certain conditions, in the transformations of the legislative decree 1297/1972, of law 2166/1993 and for those that are carried out with law 4172/2013.

Finally, innovative incentives are provided to promote the cooperation of natural persons in the profession of farmers. The relevant provisions, which were the product of cooperation between the Deputy Minister of Finance, the Minister of Rural Development and Food, Mr. George Georgantas and the competent Deputy Minister of Finance, Mr. Apostolos Vesyropoulos, seek the development of the agricultural economy, the protection and promotion of and ultimately the creation of a competitive extroverted agricultural sector.

Specifically, professional farmers members of Agricultural Cooperatives and other collective bodies, such as producer groups, as well as professional farmers who enter into binding contracts with a company – buyer for the absorption of their products in the context of contract farming, are granted a 50% exemption from income tax on taxable profits from agricultural business, provided that 75% of their products are sold in the framework of the above partnerships.

The new development bill, which comes in an admittedly difficult economic situation, due to the energy crisis, attempts to change the structure and structure of the Greek economy, through the growth of Greek small and medium-sized enterprises, which today are significantly behind in size from the corresponding ones of the other Eurozone Member States.

The Deputy Minister of Finance, Mr. Thodoros Skylakakis, stated: “Increasing the average size of the Greek micro, small and medium enterprises will help stimulate the extroversion of Greek companies, increase their productivity, growth and sustainability. In addition, it will stimulate the labor market and increase the level of wages of employees in these companies and their disposable income “.

Source: Capital

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