BUSINESS

Tax overhaul to kick in from January 1

PROKOPIS HATZINIKOLAOU

TAGS: Finance

As many as 16 changes are being introduced from January 1 in the taxation of all households, enterprises and property owners, mostly concerning reduction that will significantly alter the landscape for local taxpayers. They are the following:

- Income tax overhaul, with the first tax bracket (up to 10,000 euros) incurring a rate of 9 percent against 22 percent and a reduction by one percentage point for all other tax brackets.

- Corporate tax cut from 28 to 24 percent for 2019 profits to be taxed in 2020.

- Dividend tax halving from 10 percent to 5 percent for the 2019 financial year.

- Tax cut to 10 percent on all agricultural cooperative vehicles.

- Suspension of the 24 percent value-added tax on transfers of new properties, applying to buildings with licenses issued up to the end of 2022.

- Suspension of capital gains tax on property transactions for three years (to end-2022).

- Tax discount amounting to 40 percent of any spending on services for the operational and esthetic overhaul of buildings up to the amount of 16,000 euros.

- Reduction of the 24 percent VAT on basic commodities for babies to 13 percent.

- Reduction of the VAT on children’s car seats and on motorcycle helmets from 24 to 13 percent.

- A new standard tax debt payment plan, with 24 or 48 monthly installments depending on the type of the debt.

- Exemption from the solidarity tax for people with a disability of at least 80 percent.

- Abolition of the luxury tax for private cars used by households with at least four unmarried children under the age of 18.

- Incentives for the transfer of the tax residence of individuals wishing to invest at least 500,000 euros in Greece.

- Exemption of Greece-domiciled corporations from the capital gains tax on the transaction of holdings

- Exemption from income tax and solidarity levy of interest from bonds by listed companies.

- One-off forgiveness of debts up to 10 euros per taxpayer.

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