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6.5. Deduction of Cross-Border Payments and Non-Deductible Expenses

The following are not deductible for Greek tax purposes:

  • Any expenses not incurred for the production of taxable income
  • Corporate income tax
  • Taxes levied on taxpayers other than the company, but are paid by the company, such as employee income tax
  • Interest expense, subject to certain restrictions (see Sec. 13.2.1.)  
  • Capital gains tax on the revaluation of immovable property
  • State real estate tax
  • Penalties, additional taxes, surcharges and fines imposed for violations of tax rules
  • Payments made to residents of non-cooperative or low-tax jurisdiction, unless the taxpayer can prove that the payments are not for the purpose of transferring profits, income or capital to avoid or evade tax (See Sec 13 for details on non-cooperative and low tax jurisdictions)
  • Entertainment expenses, except for those paid by companies whose main object is the provision of entertainment services