The new tax legislation aims to strengthen small and medium-sized enterprises and, at the same time promote the green and digital transition. For that purpose, an additional discount of 100% is granted on expenses related to the green economy, energy, and digitalization.
Περιεχόμενα Άρθρου
Green and Digital Transition
Regarding the tax year 2023, expenses that promote the green economy, renewable energy, and digitization will be deducted from the gross income of small and medium-sized enterprises increased by 100%.
In this way, the dual objective of strengthening small and medium-sized enterprises through tax relief and at the same time promoting the direction set by the EU is achieved for its member states (Goals of Green Transition and Digital Transformation).
Specifically, this measure will apply for the tax years 2023, 2024 and 2025.
Article to read:
Which companies can benefit
According to the legislation, beneficiaries of the additional discount on expenses related to the green economy, energy, and digitization are defined as:
- legal persons and legal entities, as long as they fall into the category of small and medium-sized enterprises. The beneficiaries must either be active in sectors of the economy related to the green economy, energy and digitization, or be active in unrelated sectors but carry out projects or activities that contribute to the promotion of the green economy, energy, and digitalization.
Furthermore, the legislation defines as non-beneficiaries of the additional discount the small and medium-sized enterprises which are active in the following sectors:
- Sector of primary agricultural production
- Sector of the processing and marketing of agricultural products
- Fisheries and aquaculture sector
In particular, if the enterprise carries out a mixed activity and is also active in the primary production of agricultural products, fishing, and aquaculture sectors, the enterprise must ensure by appropriate means, such as the separation of activities or the distinction of cost elements, that the activities in these sectors do not receive the aid of minor importance by virtue of this.
Article to read:
Eligible green and digital expenditures
Green and digital expenses that fall into one of the following categories are eligible for the additional discount:
- Protection and management of forest environment, sanitation and cleaning of soil, water, marine areas, air, and pollution control including research and preparation of relevant studies.
- Actions to improve energy efficiency, save energy (produced and consumed), green transition, and renewable energy sources, including research and the preparation of relevant studies.
- Research and experimental development in biotechnology and research in electricity technology.
Article to read:
Conditions for granting the additional discount
- A necessary condition for the recognition of expenses and the granting of aid is their registration in electronic documents, which are transmitted to the Independent Public Revenue Authority (AADE) through the myData digital platform.
- If, for the realization of the costs herein, the relevant goods or services are procured from foreign companies, the KAD of the foreign company in accordance with the statistical classification of economic activities in the European Community, is registered in a separate field in the digital invoice, which has a special provision for this purpose.
- The beneficiary expressly declares that he is aware that the additional discount he is requesting to receive is subject to the De Minimis Regulation, through which:
- The maximum amount of aid that can be granted to the beneficiary (cumulatively with any other aid received up to the date of granting the aid, i.e., the following tax year from the one in which the expenses were incurred) cannot exceed the amount of 200,000 euros per beneficiary in a period of three financial years.
- If the company carries out road freight transport on behalf of third parties, the maximum amount of aid cannot exceed the amount of 100,000 euros per beneficiary over three financial years and furthermore the aid cannot be used for the acquisition of road freight transport vehicles.
How can QBC help you?
Following the latest developments in tax legislation and having the necessary know-how, QBC Tax Consultants are at your side to help you achieve maximum tax compliance and benefit for your business.
In the context of our accounting outsourcing and supervision services, we support businesses in evaluating and restructuring their existing accounting systems to make them more efficient and effective.
For more information on corporate tax and accounting, you can contact us by phone at 216 900 7576 or submit a contact request and one of our Consultants will call you as soon as possible.
