Greece: Tax changes affecting businesses, individuals

Greece: Tax changes affecting businesses, individuals

Law 4334/2015, enacted following the negotiations and conclusion of an agreement with the European stability mechanism, enacts the following tax changes (among others) in Greece:

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  • An increase in the rate of corporate income tax to 29% (increased from 26%), effective for profits arising in fiscal years beginning on or after 1 January 2015.
  • An increase in the “advance corporate income tax payment” to 100% of the current year’s taxes (increased from 80%), again effective for profits in fiscal years beginning on or after 1 January 2015. The rate for payment of advance tax for partnerships, cooperatives, associations, and others is increased to 75% (up from 55%).
  • For individual taxpayers, a “special solidarity contribution” continues to apply, but with new rates.
  • A luxury tax is introduced on certain private boats and yachts, automobiles, swimming pools, aircraft, and other property.
  • The rate of value added tax (VAT) for certain “basic goods” (including prepared or proceed food, and also applicable for restaurants and cafes) is increased to 23% (up from 13%). 
  • The VAT rate for hotels is increased to 13% (up from 6.5%). 
  • The “extra-reduced” VAT rate that applies for medicines, books, newspapers, and theatre tickets is reduced to 6% (down from 6.5%).
  • There are new procedures for banks to remit the amount of VAT levied on transactions exceeding €3,000.
  • The rate of insurance premium tax is increased to 15% (up from 10%), but the rate for policies providing life insurance and fire insurance coverage remain at 4% and 20%, respectively. 

Read a July 2015 report [PDF 383 KB] prepared by the KPMG member firm in Greece: Tax Newsletter (17 July 2015)

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