Tax and Accounting Aspects of the Assignment of Debts

The assignment of debts is the Convention by which the transferor lender submits a claim against the assignee to a third party. According to the MPF. 1898/2013 for amending and completing the accounting Regulations compliant with European directives approved by the MPF. 3055/2009, published in the Official Gazette, part I, no. 727 of 26 November 2013, the claims taken over by the disposal, will be shown in the accounts at cost of acquisition, their nominal value being recorded in off-balance sheet. In this paper we propose to emphasize the effects of accounting and tax treatment of debts taken from the transfer in the light of the new changes introduced by the MFP. 1898/2013.