Greece: Reform Law 4472/2017 published

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The Government published Law 4472 on 19th of May 2017 in the Official Gazette. It includes several reform measures concerning the medium-term fiscal targets for 2018-2021 and tax cuts for legal entities. Therefore, the corporate income tax (CIT) rate will be reduced from twenty nine per cent (29%) to twenty six per cent (26%) from 1 January 2019 subject to certain conditions. The corporate rate for credit institutions is remain twenty nine per cent (29%) rate. There are some changes to the individual income tax brackets and special solidarity tax brackets. The changes on individual income tax brackets and special solidarity tax brackets are given below:

Individual income tax brackets:

Thresholds Rate
Less than or equal to EUR 20,000 20%
Over EUR 20,000 up to 30,000 29%
Over EUR 30,000 up to 40,000 37%
Over EUR 40,000 45%

Special solidarity tax brackets:

Thresholds Rate
Up to EUR 30,000 0%
More than EUR 30,000 up to 40,000 2%
Over EUR 40,000 up to 65,000 5%
Over EUR 65,000 up to 220,000 9%
More than EUR 220,000 10%

From 1st January 2020, the personal income tax and special solidarity tax amendments will be applied. The law also gives other measures regarding public pension, social security, employment law, and others.

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