The conditions set by the new Income Tax Code (Law 4172/2013) under which an expense is deductible from a company’s profits, as well as which expenses are not deductible from a company’s profits. If you would like it in a more technical / legal wording suitable for publication, I can refine it further

Below is a concise summary of Articles 22 and 23 of Law 4172/2013, which set out the expenses that are deductible and the expenses that are not deductible from profits, respectively. If you’d like it in a more formal legal drafting style (for a report or publication), I can adjust the tone accordingly.

• Deductible Business Expenses (Article 22 – Law 4172/2013)

In determining profit from business activity, the deduction of all expenses is allowed, subject to the provisions of the following article (i.e., all expenses that meet the conditions of this article are deductible, provided that they are not listed in the subsequent article concerning non-deductible expenses), and which:

1. Are incurred for the purposes of the business or in the ordinary course of its commercial activities.
2. Relate to a genuine transaction, and the transaction value is not deemed understated or overstated based on indirect audit techniques.
3. Are duly recorded in the accounting records maintained for the period in which they are incurred and are substantiated by appropriate supporting documentation.

The above provisions apply to expenses relating to tax periods closing after 30 June 2014 (Article 72, paragraph 2, Law 4172/2013). In other words, for businesses whose tax period ends on 31 December, this applies to expenses incurred from 1 January 2014 onwards, while for businesses whose tax period ends on 30 June, it applies to expenses incurred from 1 July 2014 onwards.

• Non-Deductible Business Expenses (Article 23 – Law 4172/2013)

The following expenses are not deductible:

1. Interest on loans obtained by the business from third parties, other than bank loans, to the extent that such interest exceeds the amount that would have arisen if the interest rate had been equal to the interest rate applicable to overdraft facilities granted to non-financial enterprises, as published in the Bank of Greece’s Statistical Bulletin of Economic Conjuncture for the period closest prior to the date the loan was granted.
2. Any expense relating to the purchase of goods or the receipt of services exceeding €500.00 in value, provided that the partial or full payment has not been made using a bank payment method.
3. Unpaid social security contributions.
4. Provisions for the write-off of doubtful receivables, other than those specified in Article 26.
5. Fines and penalties, including surcharges.
6. The granting or receipt of remuneration in cash or in kind that constitutes a criminal offense.
7. Income tax, including the business levy and any extraordinary contributions, imposed on profits from business activity in accordance with the Income Tax Code, as well as Value Added Tax (VAT) attributable to non-deductible expenses, insofar as such VAT is not deductible as input VAT.
8. The imputed rental value referred to in paragraph 2 of Article 39, in cases of self-use, to the extent that it exceeds 3% of the property's objective value.
9. Expenses incurred for the organization and conduct of informational seminars and meetings relating to the catering and accommodation of clients or employees, to the extent that they exceed the amount of €300.00 per participant and insofar as the total annual expense exceeds 0.5% of the company’s annual gross income.
10. Expenses incurred for the organization and conduct of informational seminars and meetings relating to the catering and accommodation of clients or employees, to the extent that they exceed the amount of €300.00 per participant and insofar as the total annual expense exceeds 0.5% of the company’s annual gross income.
11. Entertainment expenses. Entertainment expenses are not deductible. However, where the taxpayer’s principal business activity consists of the provision of entertainment services and such expenses are incurred in the ordinary course of that activity, they do not fall within the scope of this article and are deductible from profits.
12. Personal consumption expenses.
13. The total amount of expenses paid to a natural or legal person or legal entity that is a tax resident in a non-cooperative state or is subject to a preferential tax regime, in accordance with the provisions of Article 65, shall not be deductible, unless the taxpayer proves that such expenses relate to genuine and ordinary transactions and do not result in the transfer of profits, income, or capital for the purpose of tax avoidance or tax evasion. This provision does not preclude the deduction of expenses paid to a natural or legal person or legal entity that is a tax resident of a Member State of the European Union (EU) or the European Economic Area (EEA), provided that there is a legal basis for the exchange of information between Greece and that Member State.

The above provisions apply to expenses relating to tax periods closing after 30 June 2014 (Article 72, paragraph 2, Law 4172/2013). In other words, for businesses whose tax period ends on 31 December, this applies to expenses incurred from 1 January 2014 onwards, while for businesses whose tax period ends on 30 June, it applies to expenses incurred from 1 July 2014 onwards.

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