Tax breaks from September

Tax breaks from September

The national development plan to start applying in 2021 will contain reforms focused on the gradual reduction of tax rates and social security contributions, Finance Minister Christos Staikouras said on Tuesday.

Addressing the seventh Strategic Conference on “Investments in Greece and Growth Prospects,” the minister said that the government is seeking to introduce a sensible fiscal policy with a gradual reduction of tax rates and – above all – of social security contributions for employers and employees alike.

The government agenda further includes the reduction of the solidarity tax, of the levy to practice certain professions, of the Single Property Tax (ENFIA) and of the corporate tax deposit. However, before any announcements can be made Greece will have to secure a deal with the eurozone at September’s Eurogroup for reducing its primary surplus target far below 2% of gross domestic product.

The provisional tax break package specifically contains: the cut of the solidarity levy by 30% for 2021; the slashing of the levy to practice a profession from 650 euros to €325 for freelancers and €500 for corporations; the average 8% reduction of ENFIA combined with the adjustment of the property rates used for tax purposes (known as objective values); and support for salaried labor with a swift cut to social security contributions, probably by 2 percentage points as of September.

The national development plan will include reforms focused on the continuation of state asset utilization; the further modernization and improvement of the economy’s ability to attract investments with a series of bills, such one on electric mobility or the new tax bill expected by the end of the month; the implementation of structural changes regarding the regulatory framework for entrepreneurship, public investment management, agricultural policy, research and innovation etc; and the transition to a sustainable model of economic growth with the support of investment initiatives with high added value.

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