On 9 January 2024, Greece’s Ministry of Economy and Finance declared the presentation of a draft law to the cabinet for integrating the Pillar 2 global minimum tax according to Council Directive (EU) 2022/2523 of 14 December 2022. The draft law aligns Greece with other EU countries and the OECD initiative, which seeks to tackle tax avoidance and the under-reporting of profits by large corporations. The directive has been adopted by 132 countries and will go into effect from 1 January 2024 by EU member states.
The main points of the draft law are:
Minimum Effective Tax Rate: The law introduces a 15% minimum effective tax rate (METR) for multinationals and large domestic corporations exceeding €750 million in annual turnover. This may lead to a top-up tax of up to 15% on their profits if their taxes paid elsewhere fall below the minimum.
Closing Loopholes: This law aims to prevent companies from shifting profits to low-tax countries to avoid paying their fair share.
Level Playing Field: The minimum rate creates a fairer playing field for businesses by eliminating competition based on tax rates.
Boosting Revenue: Greece expects to generate an additional €80 million in tax revenue from this initiative, which can be used for public services and infrastructure.
