On the 26^th 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