In line with the current law, according to the article 58 of the Law 4172/2013 (Income Tax Code, hereinafter referred to as ITC) the partnerships which apply either single entry or double entry book keeping are subject to taxation on their profits at the rate 29%, as it is enacted by the article 58 par. 1 of the ITC, amended by the par. 10 of the article 112 of the law 4387/2016, which according to the par. 11 of this article and law is applicable to the income earned from the tax year 2016 and following ones.
Moreover, in case of double entry book keeping and profit distribution to the partners, an income tax is withheld at a rate of 15% paid by the company.
The remunerations paid to the managers of the partnerships are taxed, according to the scale for employees, as provided by the article 15 of the ITC. More specifically, from 0.00 € – 20,000.00 € the rate is 22%, from 20,001.00 € – 30,000.01 € the rate is 29%, from 30.001 – 40.000 € the rate is 37% and for more than 40,001.00 € the rate is 45%.
Nonetheless, according to the article 16 of the ITC, a reduction on tax is provided for by the amount of one thousand nine hundred (1,900.00) euro, if the taxable income does not exceed the amount of twenty thousand (20,000.00) euro, while further reductions are provided depending on the number of dependent children of the taxpayer.
If the tax amount is less than these amounts, the tax reduction is limited to the amount of the corresponding tax. Where the taxable income exceeds the amount of twenty thousand (20,000) euro, the amount of the reduction shall be reduced by ten (10) euro per one thousand (1,000) euro of taxable income.