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Tax Alert – Greece – Pension Fund Reintroduction Confirmed

This is a further update on the evolving changes within Greece in relation to the TEAAPAE (Greek Pension Fund). In letters sent to ourselves and various Insurers between 30th of October and 2nd November 2017, a Ministerial Decree (no. 0 AT10/F.51020/48217/755) published in the Government Gazette now ratifies and confirms the amended Articles of Association of the TEAAPAE. This amendment critically reintroduces the contribution for all insurers including those writing business under a Freedom of Services regime, retrospectively to the 1st January 2016.

The TEAAPAE have accepted a 60% discount on the rates that were applied until July 2014 (when the premium-linked contributions were first abolished) now apply both for the retrospective period and for the foreseeable future.

The level of contribution varies dependent on class of business as per the following high-level examples:

• 2% on the life & capitalisation insurance premiums and any supplementary covers, with limits on time and other riders on the same insurance policy, with a limit of 6% on the insured amount.

• 0.80% on insurance premiums for the classes such as Fire, Accidents, Liability & Automotive and others.

• 0.40% on insurance premiums for the classes like Marine, Aviation, Livestock and all other classes not specifically mentioned.

• 0.10% on the insurance premium for investment linked or unit linked Life policies and Pension funds.

The letter sets an unachievable deadline of declarations to be made by the 10th November and payments by the 30th November. Whilst our agent follows this up, they are suggesting that the verbal discussions are progressing well and an extension is likely. Our Impendulo office in Athens has formally written to the Fund requesting that such a tight deadline is almost impossible to achieve.

We are pro-actively preparing the data for all our Clients in Greece and over the next few weeks, and will confirm the potential liabilities accordingly. If you would like more information or assistance in Greece, please get in touch directly.

For any further information related to Insurance Premium Tax please do not hesitate to contact us: info@impendulo.com.

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