Many enterprises in Greece are currently taking advantage of the recent law on mergers which was introduced in 1993 (Law 2166/1993). The purpose of this law is to encourage the merger of various businesses by simplifying the procedures for mergers and by introducing a number of tax benefits.

The benefits are:

(i) no capital gains arise since assets and liabilities are transferred to the new company at book values confirmed by a certified public accountant.

(ii) no capital concentration tax arises for increases in the company's share capital.

(iii) no real estate transfer tax is levied on the transfer of real estate.

(iv) losses incurred by the old company can be transferred and utilised by the new company.

The contents of this article are intended to provide a general guide to the subject matter. Specialist advice should be obtained before any action is taken.

For further information contact Marios T. Kyriacou, KPMG Peat Marwick Kyriacou, Athens, Tel: 00 301 77 52 001; Fax: 00 301 77 04 182.

Copyright Mondaq Ltd 1995 Tel +44 171 820 7733.