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New Tax Bill: Passing up 10 August and the changes will begin from 1/1/2020

Until 10 August is expected to be voted the new tax bill, according to the timetable for the implementation of government work……\

The bill, as announced by Prime Minister Kyriakos Mitsotakis, It will be the second to be tabled in Parliament by the government. According to reports, testimony to the House is expected to take place by the end of the month.

Recall, that strategic government options for the Treasury is:

Strong growth with more new investments and better jobs, to give value to the real estate, to ensure social cohesion and solidarity, while higher disposable income for all through a modern state, simple and effective in its citizens.

The objectives for the sector include the Ministry:

  • Securing macroeconomic stability
  • Attractive tax environment for businesses
  • Faster implementation of privatization
  • liquidity support
  • Facilities for indebted households
  • Enhancing digital environment to address the informal economy
  • Best Service with respect to the citizen money
  • Reducing the burden of taxes and contributions for employees
  • Freelancers and farmers and reduce administrative and fiscal burden on real estate

Direct government priorities in the Treasury area are:

  • Reduction of tax on businesses from 28% in the 20% over two depth. The 2020 will fall to 24% and 2021 in the 20%.
  • Reducing the dividend tax of shareholders of 10% in 5%, the 2020.
  • Reduction in ENFIA 30% within 2 years
  • Tax credit equal to 40%-50% the cost of energy, functional or aesthetic enhancement of buildings
  • Suspension of tax on profit on real estate transactions (betterment tax), for three years and review of the fourth year zero base.
  • Suspension of VAT on construction activity for three years.
  • Study relocation and optimization of building infrastructure in accordance with the new structure of the government.
  • import tax rate introduction to natural persons by 22% in the 9% for incomes up to Euro 10.000 without reduction of the tax free and create a new progressive tax scale with a lower maximum tax rate.
  • Phase out the special solidarity levy.
  • Gradual abolition of the trade charge.
  • Improvement of the special arrangement of 120 doses for those who owe up to Euro 3.000 the IRS and the insurance funds and introducing a framework for preferential treatment of consistent taxpayers and borrowers.
  • Reducing VAT rates from 13% in 11% και από 24% in 22% within 4 years.
  • Gradual introduction of mandatory electronic invoicing between companies (B2B).
  • Adoption of electronic monitoring system of mobile loads.
  • Mandatory introduction of electronic invoicing for suppliers of State and Local Government (B2G).

Indicative agreed measures of the previous government under the Enhanced Supervision of Institutions:

  • Evaluation of the Principle of authorization plans and the GAO from the Court.
  • Progress in staffing Principle of authorization in order 12500 officials
  • Plan 2019-2022 monitoring of various projects including the appointment of the Executive Council.
  • Full electronification of the Principle of authorization procedures
  • Improvement GAO possibilities (staff, education, resources) to be able to control financing proposals.
  • Categorization by fund and activity on the state budget 2021
  • Further improvement of the budgetary procedure.
  • Adopting an integrated approach for training w / h through the transfer of responsibility for defining expenditure ceilings at GAO.
  • Application repayment schedule, aiming 0,5 billion. outstanding.
  • Deciding on the dissolution or extension of the mandate of the FSF (in the middle of 2022)
  • Further relaxation of controls on capital movements, according to the published schedule
  • Implementation of operational HRADF recovery program

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