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Decision issued on procedure for pre-approval of royalties and management fees payable to foreign companies — Orbitax Tax News & Alerts

On 5 August 2005, the Deputy Minister of Economy and Finance issued Decision POL 1113/5.8.2005 which provides the procedure and the documents required for the pre-approval by the special committee of the Ministry of Finance of the royalty payments and management fees paid by Greek companies to foreign companies. The Decision stipulates that the relevant application for financial year 2005 must be submitted by 30 September 2005. For subsequent financial years, the application must be submitted at the latest 2 months before the commencement of the financial year to which the relevant expenses pertain; where the agreement giving rise to the expenses has been signed after the expiration of this deadline, the application must be submitted within 2 months from the date of signature of the agreement.

With respect to royalties, the pre-approval procedure required for the deduction of the relevant expenses relates to amounts paid by: