Ecovis in India

Greece Income Tax: New Amendments to the Greek Tax Framework

The Greek Parliament has passed a draft law (L. 4799/2021) amending the country’s tax law. With this, the legislator is significantly reducing the corporate tax rate and income tax prepayments and, from 2022, the solidarity contribution for certain types of income.

The Tax Changes in Law L. 4799/2021 Include:

1. Reduction of the Corporate Income Tax Rate
From the tax year 2021 onwards, the income tax rate for legal entities and individuals conducting business activity is reduced from 24% to 22%.

2. Decrease in Income Tax Prepayments
The income tax down payment for freelancers is reduced from 100% to 55%. The prepayment assessment is based on the income tax returns of the tax years 2020 onwards.

From the tax year 2021 onwards, income tax down payments for legal persons and legal entities are reduced from 100% to 80%. In addition, the down payment has been set exceptionally to 70% for 2020 income tax returns.

For Greek banking institutions and branches of foreign banks operating in Greece, income tax prepayment remains at 100% for the tax years 2020 onwards.

Would you like to know more about the effects of the tax changes on your company? Contact us.

Dimitrios Leventakis, Managing Director, ECOVIS HELLAS L.T.D., Athens, Greece

3. Exemption from the Special Solidarity Contribution for Special Types of Income for Tax Years 2021 and 2022
For the tax year 2021, all individual income including employment income earned by private sector employees, business income, income from capital (dividends, interest, royalties and rental income), and capital gains is exempt from the special solidarity contribution. The exemption does not apply to employment income earned by public sector employees and pensioners.

For the tax year 2022, employment income earned by private sector employees is exempt from the special solidarity contribution.

4. Five-Year Allocation Benefit Method
A 5-year allocation method is provided for the benefit arising from the offset of the claw back of pharmaceutical expenditure with research and development expenses. The allocation begins from the tax year in which the benefit incurred.

5. Abolition of Tax on Shares Transfer
Tax on the profits gained from the transfer of shares listed on foreign exchange stock markets or other internationally recognised financial institutions and transactions made through multilateral trading facilities is abolished with immediate effect.

For further information please contact:

Dimitrios Leventakis, Managing Director, ECOVIS HELLAS L.T.D., Athens, Greece
Email: dimitrios.leventakis@ecovis.gr

Anastasia Moschovaki, Tax Lawyer, ECOVIS HELLAS L.T.D., Athens, Greece
Email: moschovaki.anastasia@ecovis.gr

Work Permit Vietnam: Legislative Updates to the Management of Expatriates Working in Vietnam

The Vietnamese government will be monitoring the employment and administration of foreign workers much more closely in the future. To enable this, it has introduced Decree No. 152/2020/ND-CP, which tightens the requirements and documentation obligations for work permits in Vietnam. It came into effect on 15 February 2021.

Since the decree came into effect, the government has been accelerating its implementation in an effort to prevent illegal foreign migrant workers, one of the main potential causes of the resurgence of the COVID-19 pandemic in Vietnam. The most important aspects of Decree 152 are:

Work Permit Vietnam: Requirements

The decree re-defines some of the typical basic conditions for defining internal transfers, experts, and technical workers:

• Internal transfer: An employee must be employed by the foreign entity for at least 12 consecutive months prior to the transfer date, instead of only 12 months as before.
• Expert: Experts must have at least 5 years experience and a practicing certificate corresponding with the job position that the expatriate will occupy in Vietnam. Expert certificates issued by overseas organisations are no longer accepted as proof of expertise.
• Technical worker: Technical workers must now have at least 5 years experience in a job corresponding with the position that the expatriate will occupy in Vietnam.

Work Permit Vietnam: Exemptions

Decree 152 also clarifies certain cases for work permit exemption, including:

• Owner or capital contributor to a limited liability company with a capital contribution of at least VND 3 billion (VND one billion is the quivalent of around USD 43,380).
• Chairman or member of the board of directors of a joint-stock company with a capital contribution of at least VND 3 billion.
• Foreigners married to Vietnamese citizens and residing in Vietnam.
• Managers, executives, experts, or technical workers entering Vietnam for a period of work of up to 30 days and no more than 3 times a year.
• Foreigners in charge of setting up a commercial presence of a foreign entity in Vietnam.

It should be noted that the first four cases above are not required to apply for a certificate of work permit exemption, but must inform the labor authorities at least 3 days before commencing work in Vietnam, explain the Ecovis experts.

We can support you in correctly implementing the new and stricter labour laws in Vietnam.

Nghia Tran, Partner, ECOVIS AFA VIETNAM, Da Nang City, Vietnam

Term of Work Permit/Work Permit Exemption Certificate

A work permit or a work permit exemption certificate is only valid for up to 2 years.
The foreign employee can renew the work permit once for a further two-year term at least five days but not exceeding 45 days before the expiry date. After that, a new work permit must be applied for.

Reporting the Use of Foreign Workers

Vietnamese employers are required to submit biannual reports on the status of foreign workers to the relevant labour authorities before 5 July and 5 January of the following year.

The Ecovis experts highly recommend that businesses read Decree 152 carefully for purposes of labour compliance. Companies and employees who do not comply with the regulations may, in the worst case, face severe penalties or even deportation.

For further information please contact:

Nghia Tran, Partner, ECOVIS AFA VIETNAM, Da Nang City, Vietnam
Email: Nghia.Tran@ecovis.com.vn

ECOVIS Georgia Receives Second Category Auditor Status

ECOVIS Georgia has been awarded the status of second category auditor by the Service for Accounting, Reporting and Auditing Supervision. For this, the regulator monitored and reviewed selected audit engagements, company policies and procedures of ECOVIS ATA Finance LLC.

The monitoring properly assessed the result of changes made in the company during the last three years, aimed at offering quality and qualification-oriented auditing services in the local market.

What the Regulator Monitored

Monitoring was carried out by the regulator on two levels: At the audit engagement level, on the compliance of the work with International Standards on Auditing. At company level using the International Standard on Quality Control (ISQC 1) and in terms of compliance with registration rules. As a result, the company has been given the permission for rendering audit for public interest entities with certain restrictions that apply to first category PIE companies and groups.

Contact us if you would like to know more about the services of ECOVIS Georgia.

Irakli Siradze, Managing Partner, ECOVIS Georgia, Tbilisi, Georgia

What the Success Means for ECOVIS Georgia

The recognition and success of ECOVIS Georgia’s operations are critically important for the company’s further development:

• The quality and qualification of our services is recognized by a reputable entity that objectively evaluates the work practice and quality control system of companies operating in the local market.
• We can more confidently communicate with companies and groups that are looking for qualified alternatives and high-quality service.
• The company’s partners and employees have extensive experience working with microfinance organizations and insurance companies and to date, due to the lack of PIE status, we didn’t have permission to render the audit of these companies.
• We have the opportunity to cooperate with state-owned enterprises which have been granted PIE status.
• We can offer interested parties assurance services related to the completion of investment obligations, for which permission is usually only given to second or first category audit firms.
• For the companies we already provide service to, ECOVIS Georgia’s success provides additional argument that their auditor’s qualifications and quality are recognized by the regulator. This automatically increases the reliability of the audited financial statements for existing and potential investors or other stakeholders. With the further development of the capital market, we have the opportunity to collaborate with companies and groups active on the local stock exchange.

For further information please contact:

Irakli Siradze, Managing Partner, ECOVIS Georgia, Tbilisi, Georgia
Email: irakli.siradze@ecovis.ge