Discount of the Transitional Security Supply Fee (TSSF) and Special Taxes of Article 25 of Law 3468/2006 from the Gross Income of Businesses (Units Producing Electrical Energy)
January 19, 2017
Dear clients,
We would like to inform you, in case you are not aware, that the 3.6% tax introduced for photovoltaic systems starting from January 1, 2016, will be waived from the gross income of your businesses.
Below, we provide you with the relevant decision:
Protocol No.: DEAFV 1086181 2016/6.6.2016 Discount of the Transitional Security Supply Fee (TSSF) and Special Taxes of Article 25 of Law 3468/2006 from the Gross Income of Businesses (Units Producing Electrical Energy)
Athens, June 6, 2016 Protocol No.: DEAFV 1086181 2016
HELLENIC REPUBLIC MINISTRY OF FINANCE GENERAL SECRETARIAT OF PUBLIC REVENUE GENERAL DIRECTORATE OF TAX ADMINISTRATION DEPARTMENT: B’, A’
Address: Kar. Servias 10 Zip Code: 101 84 ATHENS Information: D. Velissarakou, F. Fanara, G. Barlas Telephone: 210 – 3375312 Fax: 210 – 3375001
SUBJECT: Discount of the Transitional Security Supply Fee (TSSF) and Special Taxes of Article 25 of Law 3468/2006 from the Gross Income of Businesses (Units Producing Electrical Energy).
In response to inquiries submitted to our service regarding the above matter, we would like to inform you of the following:
- According to the provisions of Article 22 of Law 4172/2013, in determining the profit from business activity, all expenses are allowed, subject to the provisions of Article 23 of the Income Tax Code, which: a) are incurred in the interest of the business or in its usual commercial transactions, b) correspond to a real transaction and the value of the transaction is not judged lower or higher than the market value, based on the information available to the Tax Administration, c) are recorded in the books of account of the period in which they are incurred and are substantiated by appropriate documentation.
- Furthermore, under the provisions of item z of Article 23 of Law 4172/2013, it is stipulated that income tax, including the flat rate tax and extraordinary contributions, imposed on profits from business activity according to the Income Tax Code, as well as the Value Added Tax (VAT) attributable to non-exempt expenses, is not waived, provided it is not deductible as input VAT.
- With Circular POL.1113/2.6.2015, in which the above provisions were communicated, it was clarified, among other things, that the taxes not exempted are strictly listed in the sub-cases of item z of Article 23 of Law 4172/2013, and consequently, other taxes not included in these cases are exempt (e.g., ENFIA property tax, vehicle circulation taxes, stamp duties, reimbursement fees for the benefit of the National Telecommunications and Post Commission, etc.).
Also, the same circular clarified that from the gross income of businesses, any expense meeting the criteria of Article 22 and not falling within the restrictive list of non-exempt expenses of Article 23 is exempt.
- Under the provisions of Article 143B of Law 4001/2011 as amended, it is stipulated that a transitional security supply fee is imposed on all units producing electrical energy connected to the Interconnected System and Network. These units include all units injecting electrical energy into the Interconnected System and Network, i.e., both conventional power generation units and units generating energy from Renewable Energy Sources, while units injecting energy into Non-Interconnected Islands are excluded.
- Furthermore, under the provisions of paragraph A.1 of Article 25 of Law 3468/2006, it is stipulated that every producer of electrical energy from Renewable Energy Sources, to whom a production license is granted after the entry into force of this law, is burdened, from the start of commercial operation of their station, with a special tax. This tax corresponds to a rate of 3% on the pre-VAT selling price of electrical energy to the System Operator or Network or Non-Interconnected Islands. Producers of electrical energy from RES in buildings or from photovoltaic systems are exempt from paying the special tax.
- Based on all the above, it can be inferred that the transitional security supply fee of Law 4001/2011 is waived from the gross income of businesses (units producing electrical energy) connected to the Interconnected System and Network since it is not included in the restrictive cases referred to in item z of Article 23 of Law 4172/2013. The same applies to the special tax of Article 25 of Law 3468/2006. The tax year to which these taxes are waived is the fiscal year to which the income on which they are calculated pertains, as these taxes are recorded in the books of account of the business transactions of the enterprise and are substantiated by the appropriate documentation.
Exact Copy The Head of the Independent Management Department
THE GENERAL SECRETARY OF PUBLIC REVENUE GEORGIOS PITSILIS
(Source: www.taxheaven.gr)