ECONOMY

PM announces reductions in tax, social security contributions

Corporate taxation rate is immediately slashed by two percentage points

pm-announces-reductions-in-tax-social-security-contributions

Greek Prime Minister Kyriakos Mitsotakis on Thursday announced a series of reductions in tax and social security contributions during a teleconference on rebooting the economy.

He said the measures were designed to help businesses that were hammered by the coronavirus pandemic and provide liquidity in the economy, also by attracting foreign investment.

Corporate tax is slashed from 24% to 22% regarding this year’s incomes that will be payable next year. The measure is permanent, meaning it will also apply to the following years’ incomes.

As of this year, but on a permanent basis, all individuals performing a professional activity will have their income tax deposit reduced from 100% to 55%, while corporations will have their income tax deposit reduced to 70% for this year and to 80% (from the original 100%) as of 2022.

Two measures which were this year introduced to the private sector will be extended into 2022, i.e. the suspension of the solidarity levy and the reduction of social security contributions by three percentage points, Mitsotakis said.