On September 12, 2014 was published on the Official Gazette the General Resolution of the Tax Authorities No. 3674/2014 (the “Resolution”), which regulates the form and term for an income tax of ten per cent (10%) on the distribution of dividends and/or profits.
The Resolution provides that when beneficiaries of income are taxable in the country, the deductions made with unique and definitive character must be informed and deposited in accordance with the procedures provided in the SICORE. On the other hand, concerning withholdings to foreign beneficiaries, their entry will be made in the form, period and other conditions set forth in the General Resolution of the Tax Authorities No. 739/99.
In cases where there is inability to retain, the Resolution mandates that the amount of the withholding shall be disbursed by the payer entity. The latter may require reimbursement from the beneficiaries of income.
The Resolution also sets that the rules contained therein shall apply to dividends and/or utilities available to beneficiaries as from September 23, 2013.
Regarding the tax that has been made available to its beneficiaries between September 23, 2014 and the effective date of the resolution, on which the relevant retention was not practiced, it will be considered entered in term if done before September 30, 2014 and pursuant to the following considerations:
– Beneficiaries residing in the country: by the beneficiary of the referred income.
– Foreign beneficiaries: For the payer of the income subject.
The Resolution came into force on September 12, 2014.