Greece: Gov’t to introduce provisional tax changes 

Greece: Gov’t to introduce provisional tax changes 

Reduction in indirect taxation, and specifically reductions in VAT rates, will apply only for a few months, while their amount does not exceed half of what taxpayers will need.

As sources report, the financial staff of the Greek government is prepping up a legislation within the second half of the year, which will provide for:

Firstly, the reduction (probably by 50%) of the income tax advance starting in the tax year 2020.

Secondly, a business tax reduction only for this year, either by completely zeroing it or with a simple curtail.

Thirdly, the possibility of offsetting losses with net profits for subsequent years for sole proprietorships.

Fourthly, the reduction in living presumptions for this year’s income.

Fifthly, the reduction of VAT rates on served coffee, soft drinks and airline tickets from 24% to 13%. Decisions regarding food services are pending.

Tourism

At the same time, the financial staff is examining a bundle of tax arrangements for individuals and legal entities, in order to allow the repayment of all obligations that will accumulate in the second half of the year.

Meanwhile, the government’s plans for tourism and food services include:

-Reduction of VAT rates on transport (sea and air travel) but only for this period from 24% to 13%.

-Reduction of VAT rate on overnight stays in hotels and other tourist accommodation from 16% to 6% also only for this season.

-Providing renovation incentives for those hotels that do will not be operating this year.

-Three-term (July-September) reduction of the VAT rate on catering services from 13% to 11%, something that has not yet been finalized.

In any case, government spokesman Stelios Petsas will immediately announce a coherent tax plan.

Debts

Furthermore, the financial staff is examining a package of tax arrangements for individuals and legal entities, in order to allow the repayments of all obligations that will accumulate in the second half of the year.

Another group of taxpayers who seem to have realized that the government is in a flux situation are the property owners who have suffered a reduction in income due to a 40% discount on rents. At present, the possibility of establishing a kind of tax refund appears to be the most plausible scenario. /ibna