Draft bill provides tax incentives for foreign investments

Draft bill provides tax incentives for foreign investments

A reduction in business tax from 28 to 24 percent for 2019 and incentives to link large investments to a reduction in taxable foreign income are some of several incentives for investments are some of the measures the government is seeking to introduce in a new draft bill that was presented for public consultation late on Thursday.

The bill also proposes that dividends tax be reduced from 10 to 5 percent, while relieving company bonds in official markets from income tax and the solidarity levy.

It outlines extensive measures for reduce the burden on households, including the introduction of a flat tax rate of 9 percent for workers, contractors and pensioners – instead of the current 22 percent – and a higher tax exemption for dependents.

For the construction sector, the draft bill seeks to suspend VAT payments for all licenses issued as of January 1, 2006, and also introduces a 40 percent tax reduction for improvements aimed at making buildings more energy efficient.

Additionally, it introduces a measure aimed at cracking down on tax evasion, by obliging transactions above 300 euros to be carried out via electronic means from the current level of 500 euros.

“The taxation bill sets the foundations for Greece's economic rebirth,” the Finance Ministry said in a statement presenting it on Thursday.

The draft bill, titled “Tax reform with a development prospect for Greece's future,” will be available for comment by specialists and the public alike until 8 a.m. on November 15. [ANA-MPA]

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