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Greece/December 2015

Following discussions with its creditors and the agreement with the European Stability Mechanism, Greece has agreed to introduce a significant reform in its tax regime in order to meet the targets assigned.

By virtue of the Laws 4334/2015 and 4336/2015, several tax aspects have undergone amendments.

Specifically, these changes include:

•An increase in the corporate income tax rate (from 26% to 29%);

•A 100% prepayment (instead of the previously applicable 80%) of the corporate tax due for the respective financial year (also applicable to individual business income);

•An increase of the  special solidarity tax rates calculated on the total reported income;

•Application of the standard VAT rate 23% has been imposed on categories of goods and services which used to have lower or nil VAT, including – among others – sugar, salt, coffee, tea, herbs, oils, vinegar, cinema tickets, restaurant services, and educational services;.

•Extension of the application of tax on “luxury living” to private recreational boats with a length exceeding 5 meters.

The relevant tax changes are planned to be applied within 2016 and they will be based on the results that Greek Government will achieve from the measures it undertakes.

Maria Sarantopoulou
Eurofast Global, Athens office
Tel: +30 210 8257720Email: maria.sarantopoulou@eurofast.eu