The most important provisions of Law 4714/2020 concern:
Alternative taxation
Article 1 adds Article 5B to the ITC and Article 67 is supplemented for the alternative taxation of income of natural persons, beneficiaries of income from pensions arising abroad, who transfer their tax residence to Greece.
Free allocation of shares and domestic tourism vouchers
With Article 2 Article 14 of the ITC is amended and exceptions are added from the calculation of income from employment and pensions for the free allocation of shares by a legal entity in the context of free share allocation schemes in which the achievement of specific targets or the occurrence of a specific event is set as a condition for the shares to be allocated, as well as domestic tourism vouchers with a total value of up to three hundred (300) euros for the tax year 2020.
With Article 3 Article 42A of the ITC is amended and the tax treatment of gains from stock options and free share allocation is changed.
Separate taxation of coaches
With Article 4 Articles 15 and 60 of the ITC are amended regarding the tax treatment of coaches, who are now separately taxed on amounts above 40.000€ at 22%
Cash donation from parent to child exempt from tax
With Article 7 the calculation of tax on cash donations and parental benefits is changed. Cash donations from providing parents to their children, made for the purchase of a first home, are exempt from tax up to the specified amount of the tax scale of Category A of Article 29 of the CATPB.
Abolition of the business levy for farmers
With Article 8, specifically for the tax year 2019, farmers under the normal VAT regime who have completed the first five (5) years from the date of keeping books and being placed under the normal VAT regime are exempt from the obligation to pay the business levy.
Changes to VAT
With Article 11 music books are subject to the super-reduced VAT rate of 6% and with Article 12 tickets for sporting events from 1.9.2020 to 30.6.2021 inclusive are subject to the reduced rate of 13%.
Reduction of the advance payment
The provisions for the reduction of the advance payment are published in Article 18.
Specifically for the tax year 2019, the amount of income tax advance payment of the first subparagraph of paragraph 1 of Articles 69 and 71 is reduced according to the percentage reduction in turnover declared for Value Added Tax (VAT) purposes (VAT return code 312) of the first (1th) half-year of 2020 compared with the first (1th) half-year of 2019, as follows:
Reduction in VAT turnover in the 1th half-year 2020 compared with the 1th half-year 2019 Reduction in income tax advance payment
5% to 15% 30%
15,01% to 25% 50%
25,01% to 35% 70%
>35% 100%
Classification of intra-Community supplies of goods
With Article 61 Article 7a is added to the VAT Code and conditions are regulated for the classification of supplies of goods, while with Article 62 provisions of Articles 15 and 19 are changed concerning the classification of intra-Community acquisitions of goods.
Exemption from ENFIA for the affected areas in MATI
With Article 96 the properties in the affected areas from the fires of 2020 and 23 July 24 are exempt from ENFIA for the year 2018.
Obstruction of inspection and use of violence
With Article 100 strict penalties are introduced for those who obstruct an inspection or use violence against AADE employees. The suspension of operations and the imposition of a fine from 10.000€ to 50.000€ are provided for.
FISC violations
Article 101 describes cases of suspension or deactivation of tax registration numbers and publishes the stricter fines for violations of failure to keep accounting records and failure to safeguard fiscal electronic mechanisms (FISC) and the fiscal memories and records created by the FISC. (click here and see the article with the relevant fines)
With Article 102 new provisions are established to address the consequences of assaults against AADE employees.
Subsidy of the Syn-Ergasia scheme
With Article 122 the provisions concerning the subsidy of social security contributions are published and with Article 123 it is stipulated that for the employer businesses of paragraph 1 that are included in the employment support mechanism «SYN-ERGASIA», the total employer social security contributions are paid by the State Budget for the period from 1.7.2020 to 15.10.2020.
Suspension of employment contracts up to and including August
With Article 124 the suspension of employment contracts of employees in employer businesses belonging to the tourism and transport sectors is provided for the months of August and September 2020.
