TAXATION

Corporations get boost from taxman

corporations-get-boost-from-taxman

The government is not only making the reduction of the corporate tax from 24% to 22% from this year permanent, but it is also slashing that figure by almost a third, to 15.5%, for corporations that merge, according to the Finance Ministry plan for the enlargement of enterprises in Greece.

That permanent corporate tax reduction is the second this government has implemented, as in 2019 it had stood at 28%.

Furthermore, Deputy Finance Minister Apostolos Vesyropoulos announced on Monday that “corporations that merge will benefit from a tax reduction amounting to 30% on an annual basis for the first three years. Personal enterprises can cooperate, setting up a single company and enjoy the same discount,” he explained, adding that more details on that will be announced soon.

Government officials say that for the 12.7 billion euros of loans from the Next Generation EU fund to trickle down to the private sector, enterprises will need to grow. They also see most mergers occurring in emerging technologies and digitalization, but the government is eager to see mergers among small and medium-sized enterprises.