Article 14
TAXATION OF ALLOWANCES
1 The tax allowance calculated in accordance with the provisions of the preceding articles shall be added to the profits of the undertaking and taxed in the financial year during which:
a. fixed assets were sold before the lapse of five years since being acquired and for the amount of the tax allowance corresponding to the value of the said fixed assets. This provision shall not apply if the assets sold are replaced, not later than six months from the end of the accounting period during which the sale was made, by new fixed assets of at least equal value, which meet the requirements of the law with respect to productive investments.
b. the respective amount of tax allowance is distributed or withdrawn, for the part of the amount so distributed or withdrawn.
c. the personal enterprise or company concerned is dissolved due to the death of the entrepreneur or of a member of the company.
2 Moreover, the allowance calculated in accordance with article 12 of the present law shall be taxed:
a. in the case of retirement of a partner, in his name, in the year of his retirement and for an amount proportionate to his participation in the company.
b. in the case of transfer of a partnerŐs share, in the name of the transferor, in the year of transfer and for an amount proportionate to his participation in the company.
c. in the case of withdrawal of the allowance by a partner or by his heirs, in the name of the drawer, in the year of the withdrawal and for the amount withdrawn.
d. in the case of a partnerŐs death and provided the company continues to function lawfully with the remaining partners, in the name of the heir and for an amount proportionate to the participation of the deceased in the company.
3 The provisions of the previous paragraphs 1 and 2 shall apply accordingly also to the tax-free withholdings made under the provisions of all development laws to date, as well as to cases pending before the tax authorities.
4 In the event that industrial installations or buildings under construction are not completed within the time limit prescribed by the provisions of instance (e) of paragraph 1, article 13, the undertaking shall be obliged to file supplementary income tax declarations for each financial year and for that part of profits exempted from taxation due to the calculation of the tax allowance.
The aformentioned declarations shall be considered overdue and the persons who file them, or fail to file them, or file erroneous declarations, shall be liable to additional tax, in accordance with the provisions of article 67 of Legislative Decree 3323/55 (Government Gazette 214/A/55).
The total amount of income tax and additional tax owing in accordance with the declaration referred to in this paragraph shall be paid in 5 equal monthly instalments, the first upon filing of the declaration and the remaining four on the last working day of the next four months following filing of the declaration. The provisions of articles 12 and 13 of the present law are applicable for industrial installations and buildings, the construction of which began during accounting period 1992 (financial year 1993) and after.
INCREASED DEPRECIATION RATES
Article 15
CONTENT AND EXTENT OF THE INCENTIVE
1 The increased depreciation rates under this law shall apply to productive investments referred to in article 1 to be realized by undertakings referred to in article 2 prior to 31-12-1994.(1)
(1) The remaining paragraphs of article 15 are presented below because it is believed that a time extension will be given by virtue of a new Ministerial Decision.
2 The regular depreciation rates applicable in each case for fixed assets of undertakings referred to in article 2, shall be increased in the case of fixed assets acquired after this law comes into effect, according to the areas in which they are established, and according to the number of shifts as follows:
Percentage (%) per shift
Area 1st shift 2nd shift 3rd shift A - 20 40 B 20 40 80 C 35 70 120 D 50 100 150
Undertakings referred to in article 2, paragraph 1 (c) of the present law, with the exception of mining undertakings of Areas A and D (which fall under the provisions provided for those areas), shall be subject to the provisions applicable for Area C, irrespective of location of establishment. In the case of hotel undertakings, undertakings operating health spas, and winter tourism centres, the above rates for the 1st shift shall apply.
3 For the purpose of implementing the above paragraph, the following prerequisites must be fulfilled:
a. Engagement of a number of workers on the second shift which, as an average annual percentage, is equal to at least one half (50%) of those engaged on the first shift and, if there is a third shift, the total number of workers on the second and third shifts must be equal to at least four-fifths (80%) of those engaged on the first shift, or
b. Annual energy consumption for the operation of the second shift equal to at least 50% of the energy consumed annually for the operation of the first shift and, if there is a third shift, annual energy consumption for the second and third shifts equal to at least 80% of the energy consumed annually for the operation of the first shift. The necessary details and procedures pertaining to the implementation of this subparagraph, which is applicable as of 1.1.1993, shall be determined by joint decision of the Ministers of National Economy, of Finance and of Industry, Energy and Technology.
4 Expenditures for the construction and improvement of buildings and facilities used for recreation and catering for workers and office staff of the undertaking concerned, as well as expenditures for ergonomic studies and for measures to protect workers, which were incurred within the time limits prescribed in paragraph 1 of this article, shall be entitled to a 100% depreciation allowance for the first year of the investment, irrespective of area.
5 Expenditures for works of art by Greek artists which were created, made or purchased after the publication of this law and incorporated or placed in the buildings of an undertaking (e.g. statues, mosaics, frescoes etc.) shall be entitled to a 100% depreciation allowance for the first year of the investment irrespective of area, provided their value does not exceed 3% of the value of the building in which the said works are permanently incorporated or placed. Any amount in excess of 3% shall be subject to depreciation in accordance with the usual terms. Works of art incorporated in the building may not be removed before 10 years have passed, unless the building is to be demolished.
6 For the purpose of calculating regular and additional depreciation allowances, the free grants which the undertaking has received from the State shall be deducted from the acquisition value of its fixed assets.
Article 16
INCREASED DEPRECIATION ALLOWANCES AND TAXATION
In the event that the account books of an undertaking are considered to be insincere, the net profits of the financial year shall be calculated without reference to the books and the additional depreciation applied during the year shall reduce the profits thus calculated.
Article 17
SETTLEMENT OF DISPUTES
In the case of investments which the Central Advisory Committee deems to be important, the act of approval may prescribe that disputes as to the interpretation of or to possible omissions in the act of approval shall be resolved by a three-member domestic arbitration tribunal as stipulated in the act of approval.
Article 18
RETURN OF GRANT
1 Undertakings made eligible for the benefits of this law which, before the lapse of 10 years from the date of publication of the decision certifying completion of the investment, have ceased to operate or, without the prior approval of the National Economy Minister, have been transferred or changed their legal form, reducing their corporate capital, or have reduced their corporate capital without such reduction being required by legislation in force or have transferred fixed assets included in the investment without replacing them within 6 months, shall be obliged to return the grant and subsidy, in part or in whole, by decision of the National Economy Minister issued following the recommendations of the competent advisory committee under this law. This obligation to return the grant and subsidy shall also apply to undertakings which within the aforementioned time limit transfer shares or company parts in excess of a percentage to be determined by decision of the National Economy Minister. The same decision shall also stipulate the specific terms which must be included in decisions making investments eligible for the provisions of the present law concerning the inability to transfer (without the prior approval of the National Economy Minister) either all the shares or company parts or those which correspond to the investorŐs own participation in the investment, depending on the composition of the capital of the company carrying out the investment and the ratio of own participation in the investment to the companyŐs capital. The provisions of this sub-paragraph are not applicable to undertakings which have been or are being admitted to the Stock Exchange, from the moment their shares are listed on the Stock Exchange and for as long as they remain listed.
Undertakings which, within a period of 10 years from the publication of the decision certifying completion, lease an investment which has been made eligible for the provisions of the present law, shall be obliged to return all or a part of the investment grant, subject to the opinion of the competent advisory committee of this law.
2 Decisions of the Minister of National Economy shall stipulate the manner and the details pertaining to the checking of compliance with the provisions of the present law and of the act conferring eligibility for its provisions with respect to undertakings which have received grants or subsidies or have in any way been assisted under the provisions of this law.
SALE BY AUCTION AND LIQUIDATION OF UNDERTAKINGS <
The expediting of the auctioning or any kind of liquidation of an undertaking which has been made subject to the provisions of Law 1262/82 or Law 1892/90 before 10 years have passed since investment completion or at any time prior to completion shall be null and void if the relevant act of attachment and the auction programme or act appointing a liquidator have not been communicated within 20 days of being drawn up to the Private Investments Department of the National Economy Ministry. The present provision includes acts of the above categories which will be issued after the lapse of 3 months since publication of this law in the Government Gazette. A special legal department will be set up at the Private Investments Department for the monitoring and notification of the State in good time.
FINANCIAL/TECHNICAL STUDIES
The financial/technical study which accompanies the application seeking an investmentŐs eligibility for the provisions of Law 1892/90, in the case of investments of a total cost in excess of 80 million drachmas, shall be signed by an economist, member of the Economic Chamber of Greece or of a corresponding organization of a European Union member state. Applications seeking eligibility which do not meet this requirement will not be examined.
COMPLETION OF INVESTMENTS UNDER IMP
The time limit for the completion of investments which have been incorporated in the Integrated Mediterranean Programmes (IMP) and which have not been completed up to 31 July 1994, may be extended until 31 December 1995 provided that prior to the publication of the present law, part of the approved assistance has been disbursed for such investments.
Relevant applications should be submitted to the Central Service for Private Investments of the National Economy Ministry up to 31 October 1994. Within the same peremptory time limit, applications may also be submitted requesting the amendment of decisions of approval pertaining only to changes in the principals of the investments, and particularly the admittance of new shareholders or the transfer of all or part of the shares or of the undertakings in question. Such requests will be approved provided the above-mentioned changes ensure the completion of the investment and the smooth operation of the unit.
The expenditures qualifying for assistance with regard to such investments are only those which were approved and incurred up to 31.12.1993, in accordance with the decisions making them eligible or any amendments thereto. The grants corresponding to the aforementioned investment expenditures will be disbursed after the completion (within the prescribed time limit) of the investments, in accordance with the terms of Law 1892/90 as same was in force prior to the publication of the present law.
Decisions incorporating in the IMP investments for which applications for time extensions are not submitted up to 31 October 1994 or for which the relevant requests will not be approved as well as decisions incorporating in the IMP investments for which a part of the approved grant has not been disbursed up until publication of the present law, shall be considered null and void ipso jure as of the date of expiry of the time limit for investment completion and the recovery of any grant disbursed will be pursued in accordance with the provisions of the third sub-paragraph of paragraph 5, article 6 of Law 1892/90 as same is in force.
Article 19
TAX ALLOWANCES FOR THE LEASING OF EQUIPMENT
1 The provisions on tax allowances of articles 12, 13 and 14 of the present law shall also apply with respect to the value of equipment which is used on a leasing basis in accordance with the provisions of Law 1665/1986 (Government Gazette 183/A/86) when:
a. The term of the leasing contract is over 10 years
b. The leasing contract with a term of up to 10 years stipulates that upon expiry of the leasing the equipment shall become the property of the lessee. In the event that the said equipment, upon expiry of the leasing, does not become the property of the lessee, the provisions of article 14, paragraph 1, instance (a) of the present law shall be implemented accordingly.
2 The provisions of paragraphs 9 and 10 of article 6 of Law 1665/1986, as in force, are hereby abolished.
Article 20
FORMATION OF SPECIAL TAX-FREE INVESTMENT RESERVE
Ýn force until 31.12.94 but extended to cover also business years 1994 and 1995 (financial years 1995 and 1996) pursuant to Law 2275/94 (Government Gazette 238/A/94)
Article 21
TAX INCENTIVES FOR COMMERCIAL UNDERTAKINGS
Ýn force until 31.12.94 (no extension given)
Article 22
ISSUING OF INSTALLATION PERMITS
1 All the installation permits required by legislation in force concerning the installation, expansion or modernization of industrial, craft industry and all types of electrical engineering installations and warehouses, shall be issued by the competent service of the Ministry of Industry, Energy and Technology.
The said service shall take care to secure all the special permits, approvals or recommendations from all State agencies, in accordance with that stipulated in articles 1, 2, 3 and 4 of Law 1360/1983 (Government Gazette 65/A/83).
2 Any provision which contravenes that stipulated in the preceding paragraph is hereby abolished.
3 By virtue of joint decisions of the Ministers of National Economy, of Agriculture, of the Environment, Town Planning and Public Works, of Industry, Energy and Technology, of Culture and of Tourism, the implementation of paragraph 1 of the present article may be regulated in greater detail.
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