Greece tax authorities audit transactions with 42 low-tax jurisdictions

The Independent Authority for Public Revenue (AADE) in Greece has launched intensive audits targeting transactions with 42 countries identified as having significantly low tax rates. These countries are defined as those where income or profit tax rates for the 2024 fiscal year are at least 40% lower than those in Greece.

Included in this list are EU member states such as Cyprus, Bulgaria, Hungary, and Ireland, as well as Balkan nations including Albania, North Macedonia, Montenegro, Bosnia and Herzegovina, and Kosovo. The primary objective of these digital cross-checks is to identify instances where Greek businesses may be using inflated or fictitious invoices to shift profits abroad and reduce domestic tax liabilities.

Under these regulations, the burden of proof lies with the business. To ensure expenses are tax-deductible, companies must provide comprehensive documentation, including commercial contracts, invoices, proof of payment, and evidence of the actual movement of goods or services. Failure to demonstrate genuine economic activity or business necessity can lead to the automatic rejection of expenses, additional taxes, and strict penalties.