ECONOMY

Gov’t plans to cut corporate tax to 15 pct

The government is planning to ease the tax burden on corporations as part of a drive to rekindle growth by increasing foreign investment and encouraging domestic entrepreneurship.

The draft budget which will be tabled early in October in Parliament will provide for a reduction to the corporate tax levied on enterprises and the self-employed from 26 percent to 20 percent, starting with next year’s incomes. The rate is likely to be reduced further in 2016, along with a reduction in the solidarity tax. Sources say that the government’s intention is to bring the income tax rate for corporations down to 15 percent the year after next.

This decision forms part of a series of measures to ease taxation on Greeks, which the government has planned but has not yet to receive the approval by the country’s creditors.

Plans also include a new accounting framework for enterprises with the tabling in Parliament of the new Code for the Tax Registration of Transactions, and a small reduction to the rate of the Single Property Tax (ENFIA) on city properties, which will reduce the levy companies pay for their assets.