On 14 December 2012, the Greek government submitted draft legislation to parliament to simplify the tax system.
According to the new bill people earning more than 42,000 Euros ($55,000) per year will now be taxed at a new top rate of 42 percent which replaces the previous level of 45 percent for incomes above 100,000 Euros ($130,770).
The eight tax bands ranging from 18 percent to 45 percent will be replaced by three tax bands, which are: 22 percent, 32 percent and 42 percent.
The tax on corporate profits will also be increased. The bill increases the tax on corporate profits from 20 percent to 26 percent but the tax on distributed dividends of companies will decrease from 25 percent to 10 percent.
