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.
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