5 April 2015

The TEAA PAE (The “Fund”) has officially asked The Hellenic Council of State, the Supreme Administrative Court, to revoke the 2014 Legislation that abolished the 1.0% & 2.0% Contribution relevant to domestic and Freedom of Services (FoS) insurers. In the meantime, the Fund has announced a set of new rules that all insurers should make a temporary contribution until the matter is resolved with the Hellenic Council of State. The rules include how the contribution is calculated, filed and paid.

FiscalReps is in dialogue with the Fund to confirm our understanding of these rules and clarify outstanding points such as:
  • the registration process for insurers that will write new business into Greece in 2015
  • if the Fund successfully revokes the abolishment of the contribution what mechanism will be in place to carry out any future adjustments?
  • if the reinstatement of contribution is unsuccessful then what mechanism will be in place to reimburse insurers for the 2015 contributions?
The new rules take effect from 1 January 2015 even though the official announcement was only made 9 March 2015. We have a verbal assurance that no interest or penalty charges will apply if future payment is made in a timely manner.  

FiscalReps will issue a Tax Alert as soon as all points have been resolved.