Greece offers up to 50% tax penalty reductions for early settlements

Taxpayers and businesses in Greece can receive reductions of up to 50% on tax penalties by accepting audit findings and waiving legal appeals. This regulation, managed digitally through the Independent Authority for Public Revenue (AADE) platform, serves as an incentive for faster settlement of outstanding tax issues and improved compliance.

The percentage of the reduction depends on the stage of the legal process at which the taxpayer accepts the primary debt:

• 50% reduction: If the debt is accepted following the notification of an audit order or information request, and before the deadline for submitting a late or amended tax return. • 40% reduction: Following the notification of a final corrective tax assessment, provided the taxpayer is within the deadline to file an administrative appeal with the Dispute Resolution Directorate (DED). • 30% reduction: After a DED decision or the expiration of the silent rejection period, if accepted within the deadline to file an appeal with a first-instance administrative court. • 25% reduction: Even after a judicial appeal has been filed, provided acceptance occurs before the day preceding the originally scheduled hearing date.

To secure these reductions, taxpayers must pay 25% of the total debt within three days of the application's approval. The remaining balance can be settled in up to 12 monthly installments through a standing regulation, provided all payments are made on time.