Tax regulation mechanism (Development Law)

• Law No. 4399/2016

Law No.4399/2016, known as Development Law, foresees support for production of sustainable biofuels (art.9 par.8 Law No. 4399/2016). The support is offered as an income tax relief and/or stabilization of income tax coefficient. In addition, the support can be replaced by other kind of support such as subsidies.

For biofuels, the level of support varies between 45%-65% of the eligible expenditure and is contingent upon the enterprise size (large, medium or large) (art. 11 par.3 subpar. 2h Law No. 4399/2016). Additional increase between 5%-15% is foreseen, if the investment takes place in certain regions, defined by the Regional Aid maps. It should be noted that the support rates concern the Programmatic Period 2014-2020.

All enterprises based in Greece are eligible for support. More specifically, the following categories are included: private enterprises, commercial companies, cooperatives and social cooperatives (art. 6 Law No. 4399/2016).

A call for application is issued yearly by the Ministry of Development and Investments. Interested plant operators submit their application. After a two-stage assessment (art. 14A &14B law No.4399/2016), a ranking is made and those investment plans that have received the highest scores receive the support. More specifically, tax relief is validated after 50% of the investment plan is completed. Tax relief is offered for a period of fifteen (15) years. (art. 66 Law No.4399/2016).

• MinDev