BUSINESS

Tax on bond proceeds set to be waived for all with new bill

PROKOPIS HATZINIKOLAOU

The government is planning to modernize the system that estimates properties’ objective values, using new technology and standardizing the valuation process by private surveyors.

TAGS: Taxation, Property

The government is planning to exempt interest income from corporate and state bonds from income tax and the solidarity levy, for both Greek residents and non-tax residents in Greece. It is also set to change the method of calculating properties’ objective values.

These changes to the taxation bill were among those discussed on Tuesday at a meeting between Prime Minister Kyriakos Mitsotakis and the Finance Ministry’s top officials.

Until today, income from bond holdings has incurred a separate 15 percent tax, with only non-tax residents exempt. Now the exemption from income tax and solidarity levy calculations will be extended to Greek taxpayers too, concerning interest payments as of January 1, 2020.

The government is also planing to modernize the system that estimates properties’ objective values – i.e. the rates used for tax purposes. The Finance Ministry will use new technology and standardize the valuation process by private surveyors based on European surveying standards.

The tax bill, which will be submitted to Parliament a few days after the final draft of the 2020 budget has been tabled, will also introduce a separate 15 percent tax on stock options – i.e. the preferential rights offered to company officials for acquiring shares in their firms – whose capital gains have until today been taxed as part of active income, at rates reaching up to 45 percent.

Other changes agreed to be introduced include the exemption of alimony from the income amount used for calculating online payment requirements, the levy to be imposed on tug boats and the tax hike on class B ships.

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