With additional positive arrangements filed yesterday at Parliament the tax bill entitled “Income Enhancement Measures, Tax Incentives for Business Innovation and Transformations and Other Provisions”.

The main additional provisions concern the following:

• Extension of VAT suspension for new buildings until 31.12.2025.
• Permanent exemption from ENFIA of listed buildings worth up to 400,000 euros.
• Increasing the salaries of the students of the Armed Forces Schools in order to equalize them with the corresponding salaries of the students of the Schools of the Security Forces.
• Exemption of liable legal entities or natural persons engaged in business activity from paying the corresponding income tax for those debts that were partially or fully written off in the context of the out-of-court settlement. This is a reinstatement of a relevant provision that was valid until the end of 2020 and aims to contribute to their return to a healthy business course. It concerns income tax due from 1.1.2024 onwards.

– Jointly liable persons (e.g. members of a legal entity with debts) are given the possibility to service a lost debt settlement of the legal entity in which they participate. The possibility is thus provided to the natural persons to pay off the debt under the same conditions as the legal person, through the revival of the regulation.

In addition to the above, the tax bill includes 12 tax reductions and measures to boost citizens’ income as well as provisions for the modernization of tax legislation and the administrative model governing the AADE with the aim of making it even more efficient. In addition, provisions are included for:

• providing incentives for business mergers and acquisitions, enhancing innovation and empowering start-ups;
• the expansion of tax incentives for scientific and technological research and the establishment of new limits of expenses that are deducted for the development and innovation of businesses and investors,
• its modernization,
• the introduction of tax-free for amounts up to 300 euros per month for tips and exemption – in their entirety – from insurance contributions,
• strengthening the resilience of the Greek economy against the effects of climate change.

Submission of the 2024 supplementary Budget

At the same time, within the framework of the bill, a supplementary Budget 2024 amounting to 400 million is submitted. euros to finance important infrastructure and ongoing projects. In particular, it increases by 100 million. euros the 2024 public investment budget in terms of the national component to cover expenses due to the rapid pace of implementation of the National Development Program (NDP) projects, especially at the regional level and by 300 million. euros in terms of the co-financed part for the repayment of the projects of the previous program period NSRF 2014 – 2020.

The Minister of National Economy and Finance, Kostis Hatzidakisstated:

“With this bill we prove, once again, that what we say is also what we do. Following the Prime Minister’s announcements at the TIF and our commitment that a significant part of the revenue from tackling tax evasion will be returned to the citizens through the strengthening of the welfare state and the reduction of taxes, we are proceeding with a series of important reforms.

An additional 12 taxes are reduced – in addition to the 60 taxes that have already been reduced or abolished -, measures are implemented to increase the income of citizens and especially the vulnerable, incentives are provided to strengthen businesses through acquisitions and mergers, startup innovation is strengthened and further modernized our tax legislation by changing the system of submitting tax returns and the administrative model of AADE.

At the same time, additional positive provisions are added to the bill such as the permanent exemption from ENFIA of preserved buildings worth up to 400,000 euros and the equalization of the salaries of students of the Schools of the Armed Forces with those of the students of the Schools of the Security Forces. And all this while proceeding with the direct financing of infrastructure projects by submitting a supplementary Budget of 400 million. euros for 2024. Without jeopardizing the fiscal stability of the country, we continue with the same dynamism and persistence the important reforms aimed at strengthening citizens’ incomes and improving their daily lives.”

The Deputy Minister of National Economy and Finance Christos Dimas stated:

“12 new tax cuts and 12 wage increases are included in the tax bill. We are steadily continuing the policy of tax de-escalation and the promotion of reforms aimed at further enhancing the income of citizens, households and professionals. The bill includes – among other things – tax incentives to support businesses that invest in research and innovation, start-ups and interventions that facilitate the transactions of citizens, freelancers and businesses with the State. We are also promoting tools that modernize the tax administration and make the State more effective in limiting tax evasion, thereby significantly increasing the State’s revenues.

I remind you that from 2019 until today, more than 60 taxes were abolished or reduced. The fact that our economy is growing at a steady pace, achieving performances much higher than the European average, allows us to implement a policy with well-defined tax reductions, and this is the path we will follow in the coming years. Our goal is to continue the reforms at a faster pace so that Greece becomes even friendlier to investments, more digital, with more and better jobs, less unemployment and lower taxes.”