15% DIVIDENT TAX ON DISTRIBUTIONOF PROFITS OF COMPANIES WITH MULTIPLE ACTIVITIES (SHIPPING AND OTHER)

Greek shipping and maritime companies that solely engage in shipping activities and trading are tax exempt from corporate tax and from dividend tax on profit distribution to their shareholders.

However, according to a newly published circular by the Ministry of Finance, companies that simultaneously engage in shipping AND other non-shipping related activities do not benefit from the same exemption and that practically means that earnings from shipping are tax exempt, but dividend distribution is not and 15% tax is applicable pro-rata.

It is once more clear that in order to benefit from the tax benefits companies engaging in shipping should maintain clean company structures and not mixing multiple activities under the same company form.