Prime Minister Kyriakos Mitsotakis today announced five measures that will reduce the tax bill and the insurance costs of employees and businesses, during a conference call on the rejuvenation of the Greek economy.
“This government has proven that it steadily prioritizes lowering taxes -before, during, as well as after the pandemic. Our primary concern, besides the public health crisis, is the speedy economic recovery. This is why today we are announcing five measures that will serve as the basis, the foundation, for a decisive comeback. These measures will allow companies that suffered losses during the pandemic to get back in the black.
At the same time, these measures will inject liquidity into the economy, while significantly boosting the prospect of a dynamic recovery and of drawing investment.
As of this year, the tax advance payment is permanently reduced from 100 to 55% for all natural persons who engage in entrepreneurial activities. This overturns rate increases implemented by the previous government.
Second; the tax advance payment is permanently lowered from 100 to 80% for legal persons and legal entities as of 2022. For the current year in particular, the advance payment is reduced even further, to 70%.
Third; starting in 2022 -therefore regarding the tax year 2021- the tax rate for all legal persons and legal entities will be cut on a permanent basis from 24 to 22%. This means that it will be brought down to a much lower level than the one we inherited from the previous government, when it stood at 28%. Let me remind you that last year we significantly cut the rate of the tax bracket for the lowest incomes to 9%, from 22%.
Fourth; we are extending to 2022 the 3-percentage-point decrease in pension contributions for private sector employees.
Fifth; we can officially confirm that the suspension of the special solidarity contribution in the private sector (payrolls) is extended, to also cover 2022.
The conference call was attended by the Finance Minister, Christos Staikouras, the Minister of Development and Investment Adonis Georgiadis, the Minister of Labor and Social Affairs Kostis Hatzidakis, the Minister of State George Gerapetritis, the Alternate Minister for Fiscal Policy Theodoros Skylakakis, the Alternate Minister for Private Investment Nikos Papathanassis, Deputy Minister for Public Investments Yiannis Tsakiris, the Deputy Minister for Social Security Issues Panos Tsakloglou, the Deputy Minister to the Prime Minister Thodoris Livanios, the Deputy Minister to the Prime Minister for the Coordination of Government Work, Akis Skertsos, the General Secretary for Economic Policy Christos Triantopoulos, the General Secretary for Fiscal Policy Athanassios Petralias, Dimitris Skalkos, the General Secretary of Public Investment and NSFR and the head of the Prime Minister’s Economic Bureau, Alexis Patelis.