Greece is a country located in Southeast Europe that has implemented Country-by-Country (CbC) reporting requirements as part of the global effort to combat tax avoidance by multinational corporations (MNCs). CbC reporting is a crucial component of the Organization for Economic Cooperation and Development’s (OECD) Base Erosion and Profit Shifting (BEPS) initiative.

The CbC reporting rules in Greece require MNCs with consolidated group revenue of over €750 million (approximately USD 840 million) to file a CbC report. The report must include information on the global allocation of income, taxes paid, and certain indicators of economic activity in each jurisdiction where the MNC operates. The report must also provide detailed information about the constituent entities of the MNC, their jurisdiction of tax residence, and their business activities.

MNCs must file the CbC report with the Greek tax authorities within 12 months from the end of the fiscal year. If the ultimate parent entity of a multinational group is not resident in Greece, a surrogate parent entity must file the report. If neither the ultimate parent nor a surrogate parent entity is resident in Greece, another entity within the group must file the report.

To ensure consistency and comparability of information across different jurisdictions, Greece’s CbC reporting rules require MNCs to comply with the OECD guidelines on CbC reporting. These guidelines provide a standardized approach to CbC reporting and have been adopted by over 100 countries worldwide.

Failure to comply with the CbC reporting requirements in Greece may result in penalties, including fines and restrictions on the ability to do business in the country. Therefore, it is crucial for MNCs to ensure they are fully compliant with the reporting requirements to avoid penalties and maintain their ability to operate in the country.

In Greece, MNCs may face challenges in complying with the CbC reporting requirements, particularly those with complex organizational structures and business operations. Such companies may need to develop new systems and processes to collect and analyze the required data. Additionally, there may be issues of confidentiality, especially where the information disclosed in the CbC report is sensitive.

Despite these challenges, the introduction of CbC reporting requirements in Greece is a significant step towards promoting tax transparency and curbing tax avoidance by MNCs. The requirements provide the tax authorities with useful information on the global operations of MNCs and help to ensure that these corporations pay their fair share of taxes in the countries where they operate.

In conclusion, CbC reporting is a vital tool in promoting tax transparency and curbing tax avoidance by MNCs in Greece. Companies operating in the country must ensure they comply with the reporting requirements to avoid penalties and maintain their business operations in the country. It is essential to develop systems and processes to collect and analyze the required data, and to ensure the confidentiality of sensitive information disclosed in the CbC report. Overall, the implementation of CbC reporting requirements in Greece is a positive step towards achieving greater tax transparency and fairness in the global economy.