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Greece Clarifies Priority in Deducting Foreign Taxes Paid

13 May 2021

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Approved Changes

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Greece

The Greek Public Revenue Authority (AADE) has published Circular Ε. 2089 of 5 May 2021, which clarifies the priority for the deduction (credit) of domestic income tax withheld, advance tax payments, and foreign taxes paid in determining the tax due for a year. The Circular provides that where a tax treaty applies, the provisions of the treaty are given priority over domestic law. As such, foreign taxes paid in a country that has a tax treaty with Greece will be given priority for deduction before the deduction of domestic income tax withheld and advance tax payments. In general, the deduction...