Moore Stephens Greece Newsletter – June 2019
This newsletter provides information to Moore Stephens SA Greece newsletter subscribers.
companies | Accounting & Financial Reporting | shipping | taxation | Generally
ON THE MERITS In June 2019, we present the article “Step in the right direction,” Mr. Panayiotis Varelas, Chief Tax Partner in Moore Stephens Greece and Ms. Athena Maggiorou, member of Moore Stephens in Greece, concerning the signing of the new arbitration between Greek shipping community and the public.
Furthermore, we present his article Mr. George Vassilopoulos, legal adviser Moore Stephens Greece for the new scheme introduced by n. 4611/2019 on redundancies and Article Mr. Panos Drakoulakou, member of the Moore Stephens network International, for the impact it will have to stop using the Libor shipping.
Also, we note the recent decision of the Bank of Greece, which requires all legal persons of non-financial sector in the form of SA Ltd., SWF and EU by shares apply to the Bank of Greece their financial information.
Articles in shipping, our focus is to lead the Greek shipowners to ship investments in the first five months of 2018, increasing the exposure of Greek banks in the maritime sector and estimates of sharp increase in activity in the Dry Docking area.
Finally, the new tax, refer to the tax treatment of retained profits of legal persons or legal entities in case of category change from double-entry books in aplografika and the new circular E.2094 / 2019 to the e-Register of Ships.
Step in the right direction
Mr. Panagiotis Varelas, Chief Tax Partner in Moore Stephens Greece and Ms. Athena Maggiorou, member of Moore Stephens Greece, published in Bloomberg article entitled “Step in the right direction” on the signing of the New Maritime arbitration between Community and Greek government.
The new arbitration both continue providing voluntary contributions and the shipping community to the Greek economy and also restored the competitiveness of Greek shipping and reduced incentives vanishing Greek shipping companies in foreign countries.
New redundancy status: Passing on the burden of proof to the employer
The new n. 4611/2019 “Setting debts to Social Security Institutions, the Tax Administration and Local Government first degree, State Pension Arrangements and other insurance and pension provisions, reinforcing protection for employees and other provisions “introduces new rules concerning the dismissals. Inter alia, introduces provisions on liability of workers while performing their work.
Mr. George Vassilopoulos, legal adviser Moore Stephens Greece summarizes the changes introduced by the new law, and focuses on how these changes strengthens the position of workers in case of dismissal, as is necessary in the case of clear and reasoned dismissal of employers.
Stop using the Libor and the impact on shipping
Following the Libor scandal 2012, which led to the imposition of fines in major international lending banks, and in addition to the measures adopted for the Libor market reform, the Andrew Bailey, CEO of the Financial Conduct Authority in the United Kingdom (FCA), noted in his speech of July 12, 2018 stopping Libor as a reference rate after 2021.
The Libor is widely used as a benchmark in the shipping finance. The stoppage will affect loan agreements financing loans, variable rates ( “FRN”), lease agreements and derivatives, among others.
2682/2019 Submission of annual financial statements of non-financial sector in the Bank of Greece
The Bank of Greece, with the decision published in the Official Gazette on June 21, 2019, imposed an obligation on all entities of the non-financial sector, which have the form of SA (Listed or not), the EPE of SWF and EU by shares apply to the Bank of Greece their financial information using specific models, which are annexed to this Act.
This obligation applies both to companies applying IFRS, and to those applied by GAS
Clarifications on the e-Registry of Ships
Circular E.2094 / 2019 of the Principle of authorization notified the provisions of Article 20 of n.4613 / 2019 for the registration deadlines in the e-Registry of Ships and provided clarifications on the application of the provisions of Article 51 of n.4569 / 2018 and n.4256 / 2014, pursuant to article taxheaven.gr .
Especially for the registration deadlines defined within 60 days for private recreational vessels under Greek flag on the registration of ships or enrollment in Books Joined Small Vessels, 15 days for recreational vessels, from the registration of ships for under Greek flag ships, or the date of any exemption from VAT for foreign-flag vessels.
Finally, the registration deadline is 15 days for professional tourist imeroploia, the registration of ships or enrollment in Books Joined Small Vessels for under Greek flag ships / boats, or from the date of any exemption from F.P .A. to acquire the vessel on foreign-flag ships / boats.
The Dry Dockings soon expected to reach its peak in recent years
Activity in the dry-dockings industry is going to witness one of the most intense periods of recent years, in front of the wave of conversions and reconstructions resulting from the emerging rule of IMO 2020.
A recent report by the freight forwarder Intermodal published in Hellenic Shipping News, reported that the ship repair sector shows a steady and gradual increase in the workload in recent months, as almost all the yards around the world have already reached close to their maximum capacity as we head towards the end of the first half of the year.
It is obvious that this is mainly due to the already prescribed modernization demand, while the bulk of deliveries by most manufacturers scrubbers starts from May onwards.
First Greek shipowners to invest in the purchase of ships in the first five months of 2019
Reduction in ship trading occurred overall during the first five months of 2019 compared with the previous year. A key element, however, is the fact that Greek shipowners conquered once again first in the purchase of ships, with investments exceeding US $ 1.14 billion..
According to data published by the brokerage house Allied Shipbroking and presented the Naftemporiki, until 25 May changed hands 540 ships worldwide, compared with 650 ships sold in the corresponding period of 2018. On the nationality of the owners, the Greeks became the first owners five months of 2019, 86 ships total value. USD 1.146 billion, while in second place followed by the Chinese owners with 84 vessels, worth 0.879 billion. dollars.
Increased exposure of Greek banks in the maritime industry
During 2018, total bank lending to the Greek shipping, both by Greek and by foreign financial institutions declined. However, it seems that the Greek banks since 2017 have started to increase their exposure to the sector, according to the study «Key Developments and Growth in Greek Ship-Finance» of Petrofin Research, which is presented in Naftemporiki.
According to this study, the total loan portfolio of the Greek owned fleet decreased in 2018 to 53176.32 million. Dollars, from $ 53994.96 million. 2017. However, the share of Greek banks to Greek shipping has increased to 18, 47% from 16.84% in 2017.
Meeting of the Union of Greek Shipowners with the Shipowners’ Association of Hong Kong
Compound of Greek Shipowners (EEE) and the Shipowners’ Association of Hong Kong (HKSOA) met in Hong Kong on May 23, 2019 to discuss the results of the meeting of the IMO Marine Protection Committee Environment and ongoing issues, and how in which the shipping industry can successfully contribute to developments.
The EIO and HKSOA, also welcomed the decision of MEPC 74 to approve the proposal for the 28 EU Member States and the European Commission for new work program to assess the overall impact of the use of exhaust gas cleaning systems and to harmonize rules of the Member States concerning the discharge of leachate of such systems in the waters.
Both compounds completely maintain their commitment to the decisions and processes, while also expressed their concerns about the cost of compliant fuels and many safety and compatibility, which we hope can be fully addressed by the different parties before 2020.
Tax treatment of undistributed profits of legal persons or legal entities in case of category change from double-entry books in aplografika
With the decision number E.2104 Protocol, the Principle of authorization issued guidance on the tax treatment of retained profits of legal persons or legal entities in case of category change from double-entry books in aplografika.
The undistributed profit at the time of change of category of books are subject to withholding tax at the rate of a case of paragraph 1 of this Article, according to the decision, which is published in e-forologia.gr .
The tax due is attributable off until the end of the second month following the end of the tax year to which the records kept by the double entry method.
Clarifications on the tax treatment of debts epanatimologountai in associate upon resignation from the right to receive payment is established by mutual agreement
Circular E.2091 given clarification on the tax treatment of debts epanatimologountai in associate upon resignation from the right to receive payment is established by mutual agreement before the entry into force of the n.4172 / 2013 devices.
Consequently, and given that the tax provisions interpreted strictly, the amounts due delete customers requirements by mutual agreement are not deductible from the gross income to the extent not covered by the provision formed the basis of the provisions of approx. I ‘in paragraph 1 article 31 of L.2238 / 1994, as they have exhausted all legal remedies for the recovery of these claims, as expressly provided in these rules.
Compulsory payment of severance pay in the private sector through a bank account or payment account
Pursuant to Law 4611/2019 passed on May 15, 2019, passed by the Minister of Labor, Social Security and Welfare, the decision on obligatory payment by employers of workers severance pay in the private sector through a bank account or payment account.
Employers are now required to pay workers severance pay in the private sector exclusively to payment accounts of the beneficiaries. Also, as for the payment of severance pay and for the payment of wages, employers are required to report any payment on the ground and the time period in question, according to a report of Taxheaven.gr.