Εγκύκλιος Ε.2007/2026: Η νέα φορολογική παγίδα στους αναπτυξιακούς νόμους που απειλεί τα κέρδη των επιχειρήσεων

A change that goes unnoticed — but directly impacts taxation

Tax policy does not always change through new legislation. In many cases, the most significant shifts arise through interpretative circulars.

Circular E.2007/2026 is a clear example. Without explicitly amending the legal framework of investment incentive laws, it effectively alters how corporate profits may be taxed.

What applied under investment incentive laws until now?

Investment incentive laws provided a clear and powerful tax benefit:

exemption from income tax
creation of a special reserve from the unpaid tax

The core principle was straightforward: taxation would only be triggered upon distribution or capitalization of the reserve.

This allowed businesses to strengthen liquidity and their capital base without immediate tax burden.

The critical shift introduced by Circular E.2007/2026

The new circular introduces a fundamental change in interpretation.

The tax authorities no longer limit their focus to the reserve itself. They extend their approach to the underlying profits from which the reserve was generated.

In practice:

If profits from prior years — which were tax-exempt due to investment incentives — are distributed, those amounts may now be treated as taxable.

Not because the reserve is distributed, but because the profits that created it are.

Why this creates tax risk?

This interpretation introduces a new layer of uncertainty for businesses.

First, it is not explicitly supported by the wording of the law.

Second, it alters the fundamental purpose of investment incentives, which were designed to promote reinvestment.

Third, it creates practical challenges, as most companies have not separately tracked these profits at an accounting level.

The result is a grey area, where tax exposure may arise retrospectively.

Which businesses are directly affected?

This development primarily concerns businesses that:

have utilized investment incentive laws
have formed tax-free reserves
are planning dividend distributions
are preparing for investment or exit scenarios

In such cases, incorrect handling may lead to unexpected taxation and impact the company’s actual valuation.

What businesses should do now

In this environment, a passive approach is no longer an option.

Businesses should:

reassess their reserves
analyze the origin of retained earnings
carefully plan profit distributions
align tax strategy with overall business strategy

This is not merely an accounting matter. It is a strategic decision.

What comes next in business taxation

The issue may ultimately be subject to judicial review. Until then, businesses must operate within this new interpretative framework.

In this context, preparation becomes a competitive advantage.

Conclusion: Tax as a strategic tool

Taxation is not merely about compliance. It is a tool for managing risk and creating value.

Circular E.2007/2026 clearly demonstrates that details can evolve into either risk or competitive advantage.

The AFS approach

At AFS, we view such developments not as simple updates, but as opportunities for strategic restructuring.

For businesses that have leveraged investment incentive laws, this is a critical moment for reassessment.

Because in taxation, the right interpretation at the right time defines the outcome.