UNITED STATES- GREECE ESTATE TAX TREATY
[Signed 2/20/50]
ARTICLE I
(1) The taxes which are the subject of the present convention are:
(a) In the case of the United States of America: the Federal estate
tax, and
(b) In the case of Greece: the tax on inheritances.
(2) The present convention is concluded with reference to United
States and Greek law in force on the day of its signature. Accordingly,
if these laws are appreciably modified, the competent authorities of the
two States will consult together for the purpose of adapting the
provisions of the present convention to such changes.
ARTICLE II
(1) In the present convention:
(a) The term "United States" means the United States of America,
and, for the application of this convention, includes the States, the
Territories of Alaska and Hawaii, and the District of Columbia.
(b) The term "Greece" means the territories of the Kingdom
of
Greece.
(c) The term "tax" means the Greek tax on inheritances or
the
Federal estate tax of the United States, as the context requires.
(d) The term "competent authorities" means, in the case of
the
United States, the Commissioner of Internal Revenue or his duly
authorized representative, and, in the case of Greece, the General
Director of Direct Taxes or his duly authorized representative.
(2) In the application of the provisions of the present convention
by either of the contracting States, any term which is not defined in
the present convention shall, unless the context otherwise requires,
have the meaning which that term has under the laws of such contracting
State relating to the taxes which are the subject of the present
convention.
ARTICLE III
(1) Immovable property situated in Greece shall be exempt from the
application of the taxes imposed by the United States.
(2) Immovable property situated in the United States shall be
exempt from the application of the taxes imposed by Greece.
(3) The question whether rights relating to or secured by immovable
property are to be considered as immovable property for the purposes of
the present convention shall be determined in accordance with the laws
of the contracting State imposing the tax.
ARTICLE IV
(1) For the purposes of the present convention, the question
whether a decedent was domiciled in the territory of one of the
contracting States at the time of his death shall be determined in
conformity with the laws in force in that territory.
(2) In the case of a person domiciled in the territory of one of
the contracting States, the situs of any of the following property or
property rights shall, for the purpose of the imposition of the tax and
for the purpose of the credit provided for in Article VI, be determined
exclusively in accordance with the following rules:
(a) Corporeal movable property, except as hereinafter prescribed as
well as bank notes, any other kind of money which is legal tender at the
place of issuance, and bearer checks, shall be deemed to be situated
where it is physically located at the time of the decedent's death.
(b) Ships and aircraft shall be deemed to be situated at the place
of documentation or registration Of the ship or aircraft.
(c) The goodwill of a business firm or the goodwill attached to the
practice of one of the liberal professions shall be deemed to be
situated where the business is carried on or the profession is
practiced.
(d) Patent, trademarks and designs shall be deemed to be situated
at the place where they are registered.
(e) Copyright and rights or licenses to use any copyrighted
material, patent, trademark or design shall be deemed to be situated at
the place where the rights arising [therefrom] are exercisable.
(f) Shares in a corporation (including shares held by a nominee for
the benefit of decedent) shall be deemed to be situated at the place
under the laws of which such corporation was created or organized.
(g) Bills of exchange shall be deemed to be situated at the place
of the drawee's residence, negotiable promissory notes at the place of
residence of the maker, and checks payable to a designated payee at the
place of such payee's residence.
(h) Claims secured by a mortgage on immovable property or on ships
shall be deemed to be situated at the place where, in accordance with
the provisions of the present convention, the immovable property or the
ship is deemed to be situated.
(i) Bonds, bank deposit, and claims of any other nature, secured or
unsecured, and other property not otherwise mentioned hereinbefore,
shall be deemed to be situated in the State in which the deceased person
was domiciled at the time of his death.
ARTICLE V
The contracting State which imposes tax in the case of a decedent
who, at the time of his death, was not a citizen or subject of such
contracting State and was not domiciled in its territory, but was a
citizen or subject of the other contracting State or was domiciled in
the territory of such other contracting State:
(a) shall allow every abatement, exemption, deduction, or credit
(except the marital deduction provided by the United States Revenue Act
of 1948), which would be applicable under its law if the decedent had
been domiciled in its territory, in an amount not less than the
proportion thereof which the value of the property, situated according
to Article IV in such State and subject to the tax of such State, bears
to the value of the property which would have been subject to the tax
of
such State if the decedent had been domiciled in its territory, and
(b) shall (except for the purpose of the subparagraph (a) of this
article and for the purpose of any other proportionate allowance
otherwise provided) take no account of property situated according to
Article IV outside its territory in determining the amount or rate of
tax.
ARTICLE VI
(1) The contracting State imposing tax in the case of a deceased
person, who, at the time of his death, was domiciled in such State or
was a citizen or subject thereof, shall allow against its tax a credit
for the amount of the tax imposed by the other Contracting State with
respect to property situated in the territory of such other contracting
State and included for tax purposes by both States, but the amount of
credit shall not exceed the portion of the tax imposed by the former
State which is attributable to such property. No credit shall be allowed
under this paragraph for property which is situated or deemed to be
situated in both contracting States.
(2) If the decedent is regarded by each of the contracting States
as having been domiciled in its own territory at the time of his death,
each State shall allow against its tax a credit for the part of the tax
[imposed by the other State with respect to property included for tax]
<<ENDNOTE 1>> purposes by both States and situated or deemed
to be
situated outside both territories. The credit authorized by this
paragraph shall be equal to the amount of tax imposed with respect to
such property by the State imposing the smaller tax, and shall be
divided between the two States in proportion to the amount of tax
imposed by each of the two contracting States with respect to such
property.
(3) For the purposes of this article, the amount of the tax of each
contracting State attributable to any designed property shall be
ascertained after taking into account any applicable abatement, credit,
remission, diminution, or increase, as provided by its law, other than
any credit authorized by this article.
<<ENDNOTE>>
1/ This part of treaty text was omitted in error in the English
translation of the treaty when signed in Greece.
ARTICLE VII
(1) Any claim for a credit or a refund of tax founded on the
provisions of the present convention shall be made within a period of
five years from the date of the termination of the period during which
the return is required to be filed under the applicable law of the
respective contracting States.
(2) Any such refund shall be made without payment of interest on
the amount so refunded.
ARTICLE VIII
The competent authorities of the contracting States shall exchange
such information (being information which such authorities have at their
disposal) as is necessary for carrying out the provisions of the present
convention or for the prevention of fraud or the administration of
statutory provisions against legal avoidance in relation to the taxes
which are the subject of the present convention. Any information so
exchanged shall be treated as secret and shall not be disclosed to any
person other than those concerned with the assessment and collection of
the taxes which are the subject of the present convention. No
information shall be exchanged which would disclose a technical secret
or process relating to trade industry business or a profession.
ARTICLE IX
(1) The contracting States undertake to lend assistance and support
to each other in the collection of the taxes which are the subject of
the present convention together with interest costs and additions to the
taxes and fines not being of a penal character.
(2) In the case of applications for collection of taxes, revenue
claims of each of the contracting States which have been finally
determined may be accepted for enforcement by the other contracting
State and collected in that State as though such taxes were taxes
finally imposed due and payable to that State. The State to which
application is made shall not be required to enforce executory measures
for which there is no provision in the law of the State making the
application.
(3) Any application shall be accompanied by documents establishing
that under the laws of the State making the application the taxes have
been finally determined.
(4) The assistance provided for in this article shall not be
accorded with respect to the citizens or subjects, or estates of
citizens or subjects, of the State to which application is made, except
where such citizen or subject or estate is entitled under Article VI of
the present convention to a credit for the avoidance of double taxation.
ARTICLE X
(1) In no case [shall] <<ENDNOTE 2>> the provisions of Articles
VIII and IX be construed so as to impose upon either of the contracting
States the obligation:
(a) to carry out administrative measures at variance with the
regulations and practice of either contracting State, or
(b) to supply information which is not procurable under its own
legislation or that of the State making application.
(2) The State to which application is made for information or
assistance shall comply as soon as possible with the request addressed
to it. Nevertheless such State may refuse to comply with the request for
reasons of public policy or if compliance would involve disclosure of
a
technical secret or process relating to trade, industry, business, or
a
profession. In such case, it shall inform, as soon as possible, the
State making the application.
<<ENDNOTE>>
2/ These words of the treaty text were omitted in error in the
English translation of the treaty when signed in Greece.
ARTICLE XI
(1) The authorities of each of the contracting States, in
accordance with the practices of that State, may prescribe regulations
necessary to carry out the provisions of the present convention.
(2) With respect to the provisions of the present convention
relating to exchange of information and mutual assistance in the
collection of taxes, the contracting States may, in accordance with
their respective practices prescribe rules concerning matters of
procedure, conversion of currency, disposition of amounts collected,
minimum amounts subject to collection, and related matters.
ARTICLE XII
When the action of the revenue authorities of the contracting
States has resulted or will result in double taxation contrary to the
provisions of the present convention, the taxpayer shall be entitled to
lodge a claim with the State of which he is a citizen or subject or, if
he is not a citizen or subject of either [of] <<ENDNOTE 2>>
the
contracting States, with the State of which he is a resident, or, if the
taxpayer is a corporation, with the State in which it is created or
organized. Should he claim be upheld, the competent authority of such
State shall undertake to come to an agreement with the competent
authority of the other State with a view to equitable avoidance of the
double taxation in question.
<<ENDNOTE>>
2/ These words of the treaty text were omitted in error in the
English translation of the treaty when signed in Greece.
ARTICLE XIII
(1) The present convention shall be ratified and the instruments of
ratification shall be exchanged at Athens as soon as possible.
(2) The present convention shall become effective on the day of the
exchange of instruments of ratification and shall be applicable solely
to estates or inheritances in the case of persons who die on or after
that date. It shall continue effective for a period of five years
beginning with that date and indefinitely after that period, but may be
terminated by either of the contracting States at the end of that five-
year period or at any time thereafter, provided that at least six
months' prior notice of termination has been given, the termination to
become effective on the first day of January following the expiration
of
the six-month period.
DONE at Athens, in duplicate, in the English and Greek languages,
the two texts having equal authenticity, this 20th day of February,
1950.
FOR THE GOVERNMENT OF THE
UNITED STATES OF AMERICA
HENRY F. GRADY [SEAL]
FOR THE GOVERNMENT OF THE
KINGDOM OF GREECE
PAN. PIPINELIS [SEAL]
PROTOCOL
[Signed 7/18/53]
With reference to the convention between the United States of
America and the Kingdom of Greece for the avoidance of double taxation
and the prevention of fiscal evasion with respect to taxes on the estate
of deceased persons, signed in Athens on February 20,1860, the
undersigned, The Honorable JOHN E. PEURIFOY, Ambassador of the United
States of America in Greece, and His Excellency STEPHANOS
STEPHANOPOULOS, Minister of Foreign Affairs of Greece, being duly
authorized thereto by their respective Governments and having considered
the fact that the aforesaid convention was approved by the United States
Senate subject to the deletion of Article IX thereof, have reached an
understanding that Article IX of the aforesaid convention shall be
deemed as deleted from the convention and that Articles X and XI which
follow shall be deemed as applicable in accordance with the said
deletion of Article IX.
This Protocol shall be considered to be an integral part of the
convention as signed in Athens on February 20, 1950, and shall enter
into force on the date on which the Government of the United States of
America receives formal notice of the ratification of this Protocol by
the [Parliament] of the Kingdom of Greece.
IN WITNESS WHEREOF, the respective Plenipotentiaries have signed
the present Protocol.
DONE at Athens, in duplicate in the English and Greek languages,
both texts having equal authenticity, this 18th day of July 1953.
FOR THE GOVERNMENT OF THE
UNITED STATES OF AMERICA
JOHN E. PEURIFOY
FOR THE GOVERNMENT OF THE
KINGDOM OF GREECE
STEPHANOS STEPHANOPOULOS
PROTOCOL
[Signed 12/30/53]
The undersigned, the Honorable CAVENDISH W. CANNON, Ambassador of
the United States of America in Greece, and His Excellency ALEXANDER
PAPAGOS, Field marshal of Greece Prime Minister, Minister for Foreign
Affairs ad interim, being duly authorized thereto by their respective
Governments, have met for the purpose of exchanging the instruments of
ratification by their respective Governments of the convention between
the United States of America and the Kingdom of Greece for the avoidance
of double taxation and the prevention of fiscal evasion with respect to
taxes on the estate of deceased persons, signed at Athens on February
20, 1950, and, the respective instruments of ratification of the
convention aforesaid having been compared and found to be in due form,
the exchange took place this day.
As recited in the ratification on the part of the United States of
America, the Senate of the United States of America in its resolution
of
September 17, 1951, advising and consenting to the ratification of the
convention aforesaid, expressed a [certain] reservation with respect
thereto, as follows:
"The Government of the United States of America does not accept
Article IX of the convention, relating to reciprocal assistance in the
collection of taxes."
The text of the said reservation was communicated by the Government
of the United States of America to the Government of the Kingdom of
Greece. The Government of the Kingdom of Greece has accepted the said
reservation by a supplementary protocol signed in Athens on July 18,
1953, and ratified by Legislative Decree No. 2734, of: October 31, 1953,
promulgated with the advice and consent of the Interim Parliamentary
Committee provided in paragraph 2, Article XXXV of the Greek
Constitution and published in the Greek Government Gazette, Volume I,
Folio 329 of November 12, 1953.
Accordingly, it is understood by the two Governments that, upon
entry into force of the convention aforesaid in accordance with its
provisions, the convention is modified in accordance with the said
reservation, so that, in effect, Article IX of the convention aforesaid
is deemed to be deleted.
Accordingly, Articles X and XI of the convention aforesaid, in so
far as they refer to Article IX, shall be deemed to be applicable in
accordance with the said deletion of Article IX.
IN WITNESS WHEREOF, the respective Plenipotentiaries have signed
the present Protocol of Exchange.
DONE in duplicate, in the English and Greek languages at Athens
this 30th day of December 1953.
FOR THE GOVERNMENT OF THE
UNITED STATES OF AMERICA
CAVENDISH W. CANNON
FOR THE GOVERNMENT OF THE
KINGDOM OF GREECE
A. PAPAGOS
PROTOCOL
[Signed 2/12/64]
ARTICLE I.
The Convention of February 20, 1950 for the avoidance of double
taxation and the prevention of fiscal evasion with respect to taxes on
the estates of deceased persons is amended as follows:
(a) The title of the aforesaid Convention is amended as follows:
Convention between the Kingdom of Greece and the United States of
America for the avoidance of double taxation and the prevention of
fiscal evasion with respect on taxes on the movable property estates of
deceased persons.
Moreover, the Preamble to the Convention is similarly amended:
The Government of the Kingdom of Greece and the Government of the
United States of America, desiring to conclude a Convention for the
avoidance of double taxation and the prevention of fiscal evasion with
respect to taxes on the movable property estates of deceased persons .
.
.
(b) Article III of the said Convention shall be deemed to be
deleted and of no further effect.
(c) Subparagraphs (a) to (i) inclusive of paragraph 2 of article IV
of the said Convention shall be deemed to be relettered (b) to (j)
inclusive and there shall be deemed to be inserted in Article IV a new
subparagraph (a) reading as follows:
(a) The provisions of the present Convention shall be deemed as not
applicable to immovable property situated in either Greece or the United
States.
Immovable property shall be deemed to be situated at the place
where the land involved is located. The question whether any property
or
right in property constitutes immovable property shall be determined in
accordance with the law of the place where the land involved is located.
ARTICLE II.
1. The present Protocol shall be ratified and the instruments of
ratification shall be exchanged at Athens as soon as possible.
2. The present Protocol shall enter into force upon the exchange of
instruments of ratification.
3. The present Protocol shall continue in effect as long as the
aforesaid Convention of February 20, 1950 remains effect[ive].
DONE at Athens, in duplicate, in the Greek and English languages
the two texts having equal authenticity, this 12th day of February 1964.