A highly anticipated draft bill on taxation was tabled on Tuesday evening in Greece’s parliament, with the highlights being welcome, albeit modest, tax breaks for the country’s crises-battered middle classes and businesses.
Among the more prominent changes is a reduction in the lowest tax bracket – for annual income of less than 10,000 euros – from 22 percent to nine percent. A tax deduction of 1,000 euros for every dependent minor is also foreseen.
The primary corporate/business tax rate on profits will also fall from 28 percent to 24 percent.
Turning to indirect taxes, the VAT rate will drop from the current “stratospheric” 24 percent to 13 percent for a handful of goods deemed as “essential”, such as motorcycle helmets, vehicle child seats, infant foods and products.
As previously reported, every taxpayer in Greece will be obliged to accumulate a figure corresponding to at least 30 percent of annual income in the form of electronic transactions, i.e. payment of goods and services with debit cards, credit cards etc.
The draft bill is expected to come up for a vote on Dec. 20, along with the 2020 budget.
