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12.4.2. Specific TP Issues

The domestic law does not provide specific rules for determining the arm’s length price of intra-group services, intangible property, and financial transactions and relies on the OECD transfer pricing guidelines.

Cost-Contribution Arrangements

Cost-contribution arrangements between related parties are subject to the transfer pricing provisions and the Greek law relies on the guidance provided by the OECD. For the determination of the arm’s length nature of a cost-contribution arrangement, the primary aspect is that the share of each participant in the expected benefit is clearly reflected in the cost-contribution arrangement. Sales, materials used for production, products sold, gross or operational margin, number of employees or capital invested, etc., are considered as drivers for allocation.

Permanent Establishment (‘AOA Approach’)

Under the Authorized OECD Approach (AOA), the OECD has published guidelines for the allocation of profits to permanent establishments. Currently, none of the Greek tax treaties have incorporated the latest Authorised OECD Approach (AOA) which is based on Article 7 of the OECD Model Tax Convention as amended in 2010.

COVID-19 Emergency Measures

In response to the effects of the COVID-19 pandemic on transfer pricing issues, Greece published guidelines which include:

  • Losses and allocation of COVID-19 specific costs, including with respect to limited risk entities, contractual terms and agreements, and extraordinary expenses due to the pandemic; and
  • Consideration of the effects of government (assistance) programs for COVID-19.