The tax rate is now 24% on net profit (previews 28%).
Tax withholding in profit appropriation is at 15%.
Social Insurance with OAEE
Section 1 (2) of Presidential Decree 258/2005 was amended pursuant to section 116 (9), Law 4072/2012, now stating that social insurance with OAEE (the Self-Employed Workers Fund) is mandatory for:
01. ΙΚΕ Administrators
Private company (IKE) administrators appointed by virtue of the Articles or of the partners’ resolution.
Third parties as well may serve as administrators
02. Sole Partner
In the event of a single-member IKE, it is mandatory for the sole partner to be insured with OAEE.
Said persons are obliged to be insured with OAEE throughout the Greek territory, as applies, mutatis mutandis, to persons associated with capital companies of other forms [Limited Liability Companies (EPE) and Societes Anonymes (AE)].
The remaining partners of a private company, i.e. those who do not serve as administrators, may, optionally, be insured with OAEE.
A private company has been established where A is a partner participating with a 1% equity stake and serving as the administrator and B is a partner participating with a 99% equity stake, serving merely as a shareholder without being the company’s administrator (he happens to be a pensioner as well). Which of the two partners is obliged to be insured with OAEE?
Being insured with OAEE is mandatory only for partner A as he is the sole administrator of the company, irrespective of his equity stake therein, and his social insurance contributions are to be calculated proportionately to his equity stake percentage; namely, if the company’s profit amounts to EUR100,000.00 (100,000.00 * 1% = 1,000), his contributions shall be calculated taking into account the amount of EUR1,000.00.