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6.2. Main Differences between Commercial and Tax Accounting

Taxable income for all legal entities consists of annual gross income, less allowable deductions. In principle, expenses may be deducted only from gross income for the fiscal year in which they are incurred. Under the domestic tax laws, fixed assets with an acquisition costs of less than EUR 1,500 may be fully written off in the year of acquisition. However, under the Greek Accounting Standards Law, such lump-sum depreciation is not allowed. The difference in depreciation on account of such difference, is to be reported in the annual tax return as a temporary difference between book and tax accounting.