Greece: Introduction of 0.20% sales tax on OTC lending transactions settled in HELEX
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Further to our Taxflash T12003 dated 11 January 2012 concerning the introduction of 0.2% tax on the value of shares lent in OTC stock lending transactions, we hereby provide a further update on this issue.
The securities lending tax has been included and approved within the framework of the Greek Law “Urgent measures for the implementation of the Medium – Term Fiscal Strategy 2012-2015”.
More specifically a 0.20% tax is introduced on OTC lending transactions calculated on the value of the shares that are lent and charged to the lender. The process for collecting the tax is expected to be similar to the one followed currently for the sales tax (that is, the tax is calculated and charged by HELEX, the Greek CSD).
The tax will be effective on OTC lending transactions with trade date on the date of publication of the law in the Government Gazette.
Impact on customers
OTC lending transactions conducted by customers in the Greek market will be subject to 0.20% tax on the value of the shares lent. Clearstream Banking will pass on to customers the charges incurred in the Greek market on an upon receipt basis.
Note on the capital gains tax and sales tax: Provided there are no further changes to the Greek laws, the capital gains tax for Greek residents is expected to be implemented from 1 April 2012. The implementation of capital gains tax means effectively that the tax on sales transactions will no longer apply in the Greek market to sale of shares bought on or after 1 April 2012.
We will continue to monitor the Greek market for any new developments and will provide more information as it becomes available.