Short-term licensing, stable taxation and tax exemptions provides the new bill by the Greek Ministry of Economy for Strategic Investments, which has been put to public consultation until December 17th.
In particular, a 45-day period is set “to issue any license, approval or opinion required for the installation or operation of an Investment Strategy, subject to more specific provisions”.
Indeed, in order to speed up procedures, the proposed framework stipulates that for strategic investments the responsibility for issuing permits for installation and operation is automatically transferred to the Minister!
Which are the Strategic Investments?
Strategic investments are categorized according to the incentives provided, and incentives for R & D-driven investments and other sectors of the economy such as industry are introduced.
Strategic investments, among others, can be characterized as:
-Investments with a total budget of over EUR 100 million or which create at least 150 new jobs.
-Investments which create at least 100 new jobs and whose total budget is over EUR 40 million.
-In particular, in the case of industrial investment, the thresholds are reduced to 75 new jobs and EUR 30 million, and if they are created in Industrial Areas, the thresholds are set at 50 jobs and a budget of EUR 25 million.
All investments that will be included in one of the above categories will be able to have a fixed tax rate for 12 years, just like the investments of the Development Law (4399/2016).
At the same time, investments classified as strategies can also receive income tax relief, depending on the amount of the investment.
Tax exemption consisting of the exemption from income tax on pre-tax profits, arising under the tax legislation from all the activities of the enterprise, minus the corporate or legal entity’s tax corresponding to the profits distributed or undertaken. The amount of the tax exemption is equal to the reserve and is calculated as follows:
– For a total budget of EUR 30,000,000, the amount of the eligible aid amounts to a maximum of EUR 7,500,000.
– For the part of the budget from EUR 30,000,000 to EUR 35,000,000, the eligible amount of aid is estimated at 80% of the eligible tax exemption.
– For the part of the budget from EUR 35 000 000 to EUR 40 000 000, the eligible amount of aid is estimated at 60% of the eligible tax exemption.
-For the part of the budget from € 40,000,000 to € 45,000,000, the eligible amount of aid is estimated at 40% of the eligible tax exemption.
-For the budget part from € 45,000,000 to € 50,000,000, the eligible amount of aid is estimated at 20% of the eligible tax exemption.
– For the part of the budget of EUR 50,000,000 to EUR 100,000,000, the eligible amount of aid is estimated at 10% of the eligible tax exemption.
– For the part of the budget exceeding EUR 100 000 000, no tax exemption is granted./IBNA