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Incentives for business development through partnerships and company transformations and other provisions

Incentives for business development through partnerships and company transformations and other provisions

On the 26th of May 2022, Law 4935/2022 on “Incentives for business development through partnerships and company transformations and other provisions” was published in the Government Gazette (GG A’ 103).

Law 4935/2022 introduces tax incentives, applying to all forms of company transformations provided for by Article 1 paragraph 1 of Law 4601/2019 (A' 44), as well as forms of transformations provided for by Legislative Decree 1297/1972 (A' 217), Law 2166/1993 (A' 137), Law 4172/2013 (A' 167) and further special legislation. It also introduces tax incentives to joint ventures.

Key provisions of Law 4935/2022 re. tax incentives (Art. 1-9) include that under certain conditions:

  • Β· The company resulting from a company transformation shall be exempted from the payment of income tax on the pre-tax profits realized, which arise, on the basis of tax legislation, up to 30% (Article 3 of Law 4935/2022) and up to 9 years.
  • Β· The income arising from the goodwill on the transfer of fixed assets of the surviving company to a third party after a company transformation shall be exempt from income tax (Article 7 of Law 4935/2022).
  • Β· Specific tax exemptions apply for the respective company transformations (Article 9 of Law 4935/2022).

Law 4935/2022 also provides:

  • Β· A deduction of all expenditures made by a company for the acquisition of shareholdings of other companies is introduced, under specific conditions (Article 10 of Law 4935/2022).
  • Β· For company transformations applying the tax incentives of Law 2166/1993 provision re. the transfer of losses from the transformed companies to the resulting company is amended (Article 11 of Law 4935/2022).
  • Β· Introduction of a tax exemption of the capital concentration tax, under conditions, for the company transformations falling into the scope of tax provisions of Legislative Decree 1297/1972, Law 2166/1993(Articles 12, 13, 14 of Law 4935/2022).

Key contacts

  • Β· Dr. Dimitris Tsibanoulis
  • Β· Anna Apostolaki

External links GG A’ 103

 

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