Greece published Ministerial Decision 139818 EX 2022 in the Official Gazette on 29 September 2022, which provides guidance on the additional 100% deduction for green economy, energy, and digitization investments by SMEs. The guidance clarifies that the additional 100% deduction is available for natural persons carrying out business activities and legal persons and entities that qualify as SMEs, which includes enterprises that employ fewer than 250 workers and whose annual turnover does not exceed EUR 50 million or whose annual balance sheet total does not exceed EUR 43 million. Further, it is clarified that the additional deduction is available for SMEs that are either active in sectors of the economy related to the green economy, energy, and digitization, or are active in other sectors and carry out projects or activities aimed at strengthening the green economy, energy, and digitalization. However, restrictions on the benefit apply for enterprises engaged in primary agricultural production, fishing, and aquaculture sectors.
The types of expenses that may qualify for the additional 100% deduction are provided in an annex to the decision, including expenses related to:
- Protection and management of the forest environment, sanitation and cleaning of soil, water, marine areas, air and pollution control with the aim of exceeding EU standards or their early implementation, including research and the preparation of relevant studies;
- Actions to improve energy efficiency, energy saving (produced and consumed), green transition, and renewable energy sources, including research and the preparation of relevant studies;
- Research and experimental development in biotechnology and research in electricity technology.
The provisions for the additional deduction apply to expenses incurred and fixed assets acquired in the tax years 2023, 2024, and 2025.
Click the following for a copy of Ministerial Decision 139818 EX 2022 published by a third party.