The Ministry of Finance announced on April 22nd new tax cuts and the abolition of the special solidarity contribution for natural persons engaged in business activity, legal persons and legal entities.
More specifically:
- From this year onwards, the mandatory tax pre-payment will be permanently reduced from 100% to 55% for all individuals engaged in business activity.
- As of 2022, the mandatory tax pre-payment will be permanently reduced from 100% to 80% for legal persons and legal entities. However, especially for 2021 it was reduced to 70%
- The Corporate Tax Rate for all legal persons and legal entities will be permanently reduced from 24% to 22%, starting from 2021 incomes and revenues
- The reduction by three percentage points of the insurance contributions of the private sector will apply also for 2022.
- Suspension of special solidarity contribution applicable to the individuals will be extended also for the year 2022.
The new measures announced by the government are expected to help the economy recover from the effects of the pandemic and relieve private sector taxpayers and businesses.
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