The Finance Minister, Christos Staikouras, presented draft Budget for the year 2020 to the Parliament on 7 October 2019. It proposes discretionary tax measures declared by the Prime Minister such as reduction in corporate tax rate, reduction in the dividend tax, decrease in social security contribution rate. This will be submitted to the European Commission on 15 October 2019.
Corporate tax
This draft budget proposes a gradual reduction of the tax rate from 29% to 25% in a 4 years period, with the resulting fiscal impact starting from 2020 onwards.
Dividend tax
Dividend tax rate will be reduced on distributed profits by 5% points with the resulting fiscal impact starting from 2020 onwards.
Social security contribution This budget contains a gradual 5% reduction in social security contributions for those in full-time employment. It will take effect from 1 January 2019.
