The Greek Parliament confirms increases to the majority of indirect taxes.
Thought the previous package of tax measures was it for this month?
Not so fast!
On Sunday (22 May) night a new law passed the Greek Parliament which confirms increases in indirect taxes, and postpones the recently-passed withholding tax rate increase on dividends.
From 1 January 2016
Having retroactive effect, the tax rate on gambling companies rises to 35% from 30% regardless of the amount of revenue.
From 1 June 2016
- The standard VAT rate rises to 24% from 23%
- The reduced VAT rates applicable in the islands of: Syros, Thassos, Andros, Tinos, Karpathos, Milos, Skyros, Alonissos, Kea, Antiparos and Sifnos are abolished.
The new VAT rates will be: 6%, 13% and 24%
- A 10% tax is applied to cable and satellite (subscription) TV
- The tax per 100ml of beer rises to €5 from €2.60, and to €2.50 from €1.30 per 100ml in small breweries.
From 15 October 2016
- The excise duty on heating oil rises to €280 from €230 per 1000lt.
From 1 January 2017
- A 5% tax applies to landline telephone connections, including the internet
- A tax of 0.10€ per 100ml of liquid applies for electronic cigarettes
- A tax per kilo is imposed, depending on the type of coffee (roasted or not etc.)
- The ad valorem tax on cigarettes rises to 26% from 20%, while for tobacco it rises to €170 from €156.70 per kilo
- The excise duty on diesel rises to €410 from €330 per 1000lt.
From 1 January 2018
- An accommodation tax on hotels is imposed. The rate varies according to hotel category.
- The withholding tax rate on dividends increases to 15% (from 10%) on 2017 income.
- The taxable income arising from the benefit in-kind for the usage of company cars rises to 80% from 30% on the maintenance and leasing cost that companies book as an expense.
- The vehicle registration tax changes and the tax will be calculated based on the retail price (before taxes).
- The rates of the supplementary property tax rises up to 1.15% from 1%.The supplementary tax will be imposed if the value of the total property is more than €200.000 (previously €300.000)
- Rates of property tax imposed on land increase
- The supplementary property tax for legal entities rises to 5.5% from 50.
The Greek Government believes the country will turn a page with the completion of the first review and above measures. On the other hand, the local market is in shock as it is evident everyone will be affected by the changes.
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