A very important tax amendment has been passed by Greece’s Parliament regarding income and corporate tax. In the new tax bill the corporate income tax rate has been increased from 20% to 26% in 2013.
But the good news is the reduction of the dividend distribution tax of companies from 25% to 10%. Three tax brackets are available for the individual income tax.
22% tax has been imposed for individual earning up to EUR 25,000 and 32% tax on earnings of EUR 25,000 to EUR 42,000. Earnings of more than EUR 42,000 will pay tax at 42%.
Previously, the top tax rate was 45% for income above EUR 100,000 and it has been replaced by a tax rate of 42% for income above EUR 42,000.
Allowance of tax credit of EUR 2,100 for individual earnings up to EUR 21,000 is the positive one. The tax free threshold for families with children has been replaced by benefits.
