Tax relief for businesses, investors, households in new draft bill released for public consultation

A reduction in business tax from 28 pct to 24 pct for 2019, and incentives to link large investments with a reduction in taxable foreign income are some of several incentives for investments under a new draft bill that was released for public consultation on Thursday.

It also proposes that dividends tax be reduced from 10 pct to 5 pct, and it relieves company bonds in official markets from income tax and the solidarity fee.

The bill also provides extensive measures to reduce the burden on households, including the introduction of a basic tax rate of 9 pct for workers, contractors and pensioners – instead of the current 22 pct – and other measures, including a higher tax exemption per child.

In the sector of construction, it moves ahead to suspend, as Prime Minister Kyriakos Mitsotakis had promised, VAT payments for all licenses issued as of January 1, 2006 and it also introduces a 40 pct tax reduction in improvements to make buildings more energy-efficient.

Additionally, it also introduces an attempt to crack down on tax evasion, by obliging transactions above 300 euros to be carried out and thus registered by electronic means (from the current 500 euros per transaction).

“In other words, the taxation bill sets the foundations for Greece’s economic renaissance,” the Finance Ministry said in a statement presenting it on Thursday.

The draft bill, titled “Tax reform with a development prospect for Greece’s future,” is open for comments by specialists and the public alike, and will be available until 08.00 on November 15.