Greek government unveils the new draft tax bill

The Greek government on Tuesday unveiled a new draft tax bill envisaging new scales and rates on income tax, higher tax rates on income from rents, introducing a 45 pct tax rate on all incomes above 35,000 euros and raising a tax rate on dividends to 15 pct from 10 pct.

The draft bill also introduces a tax-exempt ceiling of 9,100 euros.

Under the draft bill, the government seeks to introduce a 22 pct tax scale for income up to 20,000 euros, a 29 pct tax scale on incomes from 20,001-30,000 euros, a 37 pct tax scale on income from 30,001-40,000 euros and 45 pct tax scale on incomes from 40,000+ euros. The new tax scales will reduce taxes by around 2,000 euros on annual incomes from wages and pensions up to 20,000 euros.

The tax scale will be used for incomes declared by the self-employed without the tax-exempt ceiling of 9,100 euros.

The draft bill also changes the scale of a special solidarity contribution.

For incomes up to 12,000 euros a zero contribution, from 12,001-20,000 euros a 2.2 pct scale, from 20,001-30,000 euros a 5.0 pct, from 30,001-40,000 euros a 6.5 pct scale, from 40,001-65,000 euros a 7.5 pct scale, from 65,001 to 220,000 euros a 9.0 pct scale and from 220,001+ euros a 10 pct scale.

Tax rates on incomes from rents will rise from 11 pct to 15 pct (for incomes up to 12,000 euros annually), to 35 pct from 33 pct on incomes from 12,001-35,000 euros and to 45 pct on incomes from 35,000+ euros.