TAXATION

Benefits of minimum corporate tax rate rise

benefits-of-minimum-corporate-tax-rate-rise

State revenues could rise up to 2.1 billion euros per year from corporate taxes once the new global agreement on the minimum tax rate of 15% on corporate earnings starts applying, according to the European Union Tax Observatory.

This means that Greece, which only started submitting its corporate taxation data in 2017, could see takings from this category jump by as much as 55%, thereby coming to about 80% of the annual revenues from the Single Property Tax (ENFIA).

The latest study by the observatory also found that EU member-states’ revenues could benefit by €83.3 billion annually – i.e. an increase of 24% in corporate tax takings, when the new minimum rate applies.

However, the study also estimates that the substance-based carve-outs recently agreed for a compromise to be achieved between 136 countries will considerably slash the additional revenues from the raised minimum rate. In Greece’s case, those exemptions would translate to increased takings of only €1.4 billion (instead of €2.1 billion), an amount that during the decade will increase to about €1.7 billion, according to the observatory’s estimates.