RAE: Notice to a new auction for 10th December 2018

Following the conclusion of the public consultation for the auctions of December and the opinions expressed by the market players, the notice to the forthcoming auctions for RES (wind and solar) in 2018 was published by RAE, without the maximum limit of 20% of the size of the tendered capacity that can be obtained by each investor, without change in the possibility of the three-minute extensions and with an increase in the available capacity for wind farms. However, it should be noted that the minimum participation level of 75% remains; according to this the tendered capacity is adjusted, in order to exceed by 75% the interest which will be expressed by the investors.

In particular, RAE announces with Decision No. 1026/2018 three (3) new Competitive Bidding Procedures (auctions) for the following categories, setting the starting prices mentioned below:

  • Category I: Solar Stations with installed capacity PPV ≤ 1 MW (Maximum tendered capacity 94MW) with a starting price of 81,71 € / MWh
  • Category II: Solar Stations with installed capacity of 1MW <PPV ≤ 20MW (Maximum tendered capacity 100MW) with starting price of 71,91 € / MWh
  • Category III: Wind Stations with a maximum capacity of 3MW <PWIND ≤ 50MW (Maximum tendered capacity 229MW) with a starting price of 79,77 € / MWh

The date set for the online auction will be December 10th, while the applications for participation must be submitted by November 12th.

It should be pointed out that Law 4414/2016 (Government Gazette A’ 149) introduced the support scheme for RES and Co-generation of High-Efficiency Heat and Power (CHP) on the basis of the Operation Aid in the form of sliding Feed in Premium (sliding FiP), in addition to the price obtained by the RES from their participation in the Market, up to a maximum price that is the Reference Tariff (RT). The Reference Tariff will result from the Competitive Bidding Procedures (auctions), and only the successful bidders will receive the Operating Aid.

The interest in the price levels, which will result from the said Competitive Bidding Procedure (auction), is great, as it should be underlined that at the Competitive Bidding Procedure (auction) of RAE in July 2018 a considerable price reduction took place in relation to the starting prices.

MStR Law provides regularly legal services to companies during the implementation of their RES investments in the whole spectrum of licensing, construction and operation of RES power plants, including -among others- legal services in the context of the Competitive Bidding Procedures (auctions) introduced by Law 4414/2016.

New Tax Audit after the annulment of a previous one and statute-barred claims – Administrative Court of Appeal No 784/2018

Tax law is one of the areas in which our law firm has been actively involved for many years, providing advice to businesses on their tax compliance and day-to-day operation working closely with tax advisers, as well as at litigation level representing companies and individuals before the Independent Authority for Public Revenue and the administrative courts.

In the link below, you can find the recent publication of the website taxheaven on a recent tax audit case that was successfully handled before the Court by our firm.

Third Summer Symposium of ΜStR Law (with photo)

On 12.07.2018 took successfully place the Third Summer Symposium of MStR Law Firm in the hospitable area of ​​the restaurant “Vasilainas” in the centre of Athens.

Subjects of the productive discussion between the partners and our associates were the new prospects of our law firm in the field of foreign investments, real estate -under the scope of the new cadastral system-, acquisitions, taxes, contracts,  the Greek Golden Visa programme, innovation and extroversion of Greek businesses, as well as the changes in the daylife of lawyers after the introduction of the GDPR.

We thank all our associates and our guests for their vivid participation, who help us to become better, more efficient and creative, building solid relationships of trust with our customers.

Conference on “Bioenergy in the Agricultural and Tourism Sector of Greece” (with photos)

The conference on “Bioenergy in the Agricultural and Tourism Sector of Greece”, organized by the Greek-German Chamber of Commerce and Industry in the framework of an initiative of the Federal Ministry for Economic Affairs and Energy of Germany, was successfully held on Tuesday, the 19th June 2018, at the Mediterranean Palace Hotel in Thessaloniki.  MStR Law participated at the conference with the presentation of its associates – lawyers Ms. Eva Keki and Ms. Sofia Deligianni, who had the opportunity to present the legal framework of biogas/biomass in Greece, referring in particular to the stages of the licensing procedure, the support scheme/pricing of the electricity generation with the introduction of L. 4414/2016, as well as to further specific regulations that govern the operation of such plants.

We hope that the creative interaction and the fruitful discussions between the German and the Greek companies, which participated in the conference, will serve as a springboard for the future cooperation in the field of Bioenergy in Greece. Due to its long experience and expertise, MStR Law would be glad to legally support these future cooperations and projects.

 

Bioenergy in the Agricultural and Tourism Sector of Greece

The law firm MStR Law invites you to the conference on “Bioenergy in the Agricultural and Tourism Sector of Greece”, which is organized by the Greek-German Chamber of Commerce and Industry in the framework of an initiative of the Federal Ministry for Economic Affairs and Energy of Germany and will take place on the 19th June 2018, at 9:00 a.m., at the Mediterranean Palace Hotel in Thessaloniki. At this conference MStR Law will participate with a presentation of its associates, Eva Keki and Sofia Deligianni, regarding the legal framework of electricity generation from biomass/biogas in Greece.

Co-organisation of Event, Hellenic-Chinese Chamber and MStR Law Firm (with photos)

The event for the New Legal Framework of the General Data Protection Regulation (GDPR), co-organized by the Hellenic-Chinese Chamber and our law firm, MStR Law, was carried out with great success. The event took place on 17.05.2018 at the Commercial and Industrial Chamber of Piraeus and speakers were Mr. Konstantinos Giannidis, President of Hellenic-Chinese Chamber, Mr. Nikolas Giannidis, Member of the Administration of the Hellenic-Chinese Chamber, Nassos Michelis, Attorney at Law, LL.M. Munich, Senior Partner and Administrator of MStR Law, Mrs Tania Kyriakou, Attorney at Law LL.M., PhD Edinburgh, Associate of MStR Law, Ms. Xanthi Kourti, Attorney at Law LL.M. Athens, Associate of MStR Law and Mr. Stelios Vogiatzis, Director at Mazars Greece.
Photos from the event:

 

Transfer of tax residency abroad. What changes from 2018?

The recent No 1201/2017 Decision of the Independent Authority of Public Revenues of the Ministry of Finance redefined the administrative procedure according to which a natural person who is a tax resident of Greece can transfer his tax residency abroad for the tax year 2016, submitting the relevant application during 2017.

According to the clarifications provided by the above Decision, the procedure and documents needed for the transfer of residency for tax purposes abroad are the following:

  1. The natural persons, who wish to transfer their tax residence abroad, have to submit to the Department or Bureau of Compliance and Taxpayers Relations of their competent tax office until the last workday of the first ten (10) days of March of the tax year following the tax year of departure, the following documents:
  2. a)a M0 Tax Form accompanied (attachments) by the completed TAX forms M1 (“TIN return statement/Changes of Personal Data”) and M7 (“Taxpayer’s Representation Statement”) and
  3. b)a Solemn Declaration In Writing (with the authenticity of the signature certified) about the appointment of a tax representative in Greece.
  4. The official of the Tax Office receives the above documents and completes the relevant electronic application concerning the change of tax residence.
  5. The latest until the last day of the first ten (10) days of Septemberof the tax year that follows the tax year of departure, the following documentation should be submitted to the above competent Department of the Tax Office:
  6. a)a Tax Residence Certificate issued by the competent tax authority of the state the person is claiming to be a tax resident, which proves that it is a tax resident of that state.
  • If there is a Double Income Taxation Avoidance Treaty (DTT) between Greece and that state in force, the interested natural person should submit, in place of the above certificate, the relevant Double Income Taxation Avoidance Treaty Appliance Petition, which incorporates the tax residence certificate (bilingual forms) or
  1. b)only in the case of not issuance of a tax residence certificate by the competent tax authority of the foreign state, an income tax return clearance copy that the natural person has submitted to the other state suffices or,
  2. c)in the absence of a clearance, a relevant income tax return copy or
  3. d)If none of the above mentioned documents can be provided, because the competent foreign tax authorities do not proven issue such certificates, then a certificate issued by any other public or municipal or recognized authorities is required, which proves the permanent and stable residence of the individual in the other country.

The authenticity of the documents described above must be certified, in accordance to the Hague Convection (Apostille) provisions. An official translation of the documents in the Greek language is also required.

Such authentication and translation requirements are not required for the DTT forms nor for the tax residence certificates issued by the tax authorities of the USA and Turkey on the basis of the DTT signed with our country.

  1. The Tax Office is obliged to respond within two (2) months from the submission date of all the documents described above.

If the documentation provided on time by the interested natural person is considered to be sufficient and the tax residence transfer petition is approved, the natural person is considered as a foreign tax resident and the above mentioned Tax forms (M0-M1-M7), the Solemn declaration in writing for the appointment of a tax representative and the relevant approval are forwarded to the competent Department of the Tax Office, in order for the relevant changes to be registered. The tax representative is accordingly notified.

Consequently, the natural person, whose tax residence transfer petition has been approved, is therefore considered by the Greek tax authorities as a foreign tax resident and subject to Greek income taxation only for the income acquiring in Greece.

In contrast, the natural person, which provided insufficient documentation or his/her tax residence transfer petition has been rejected by the competent tax authority, is subject to Greek income taxation for his/her global income as tax resident of Greece. In this case the taxpayer has the right, exercising the relevant legal procedures (ενδικοφανής προσφυγή), to doubt the above decision/judgment of the tax authority and requests the latter to reconsider its decision.

Reduction of the electricity bill in Greece

From the 1st of January 2018, households enjoy a double reduction of their electricity cost. The reason for this is the reduction of the special emission reduction fee (ETMEAR = Eidiko Telos Miosis Aerion Rypon) by 8.48% (from € 0.02477 / kWh to € 0.02267 / kWh), as well as the introduction of a new method of calculation of the daily and nocturnal charges of services of general interest (YKO = Ypiresies Koinis Ofeleias). More precisely, the introduction of three consumption levels, instead of four, and the abolition of the separate calculation of nocturnal consumption, as well as the introduction of the separate calculation of the consumption of each level reduce the charges. Based on the previous system, if a household exceeded a certain level of consumption, was charged with the higher price of the next stage for the extra kWh. According to the new system, only the exceeding consumption quantity will be charged with the higher price.

The table demonstrates the previous charges on the YKO and the corresponding levels of energy consumption within a 4-month period compared to the new ones:

Until 31.12.2017

 

From 1.1.2018

separate charge

·         From 0 to 1.600 kWh:  0,00699 €/kWh ·         From 0 to 1.600 kWh:  0,0069 €/kWh
·         From 1.601 to 2.000 kWh:  0,0157 €/kWh ·         From 1.601 to 2.000 kWh:  0,05 €/kWh
·         From 2.001 to 3.000 kWh: 0,02987 €/kWh ·         Over 2.001 kWh: 0,085 €/kWh
·         Over 3.001 kWh: 0,04488 €/kWh /
Night Charge: 0,00889 €/kWh Day and night charge

 

MStR Law Trainee Ioanna Michailidou, Source: www.energyworld.gr (11-1-2018) with examples.