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An amendment has been tabled in Parliament amending the provisions of Article 58
of Law 4172/2002, concerning the taxation of profits from
entrepreneurial activity acquired by legal entities and companies
corporations holding duplicate books, with the exception of
designated credit institutions and its designated debtors
of Article 45 of Law 4772/2013, which retain the summaries.
In particular
the above income tax rate is redefined;
is formulated annually as follows:
(i) twenty-nine percent (29%) of the tax year's income
2018
(ii) twenty-eight percent (28%) of his income
year of taxation 2019,
(iii) twenty-seven percent (27%), for
Revenue from the 2020 taxation year,
(iv) twenty-six percent (26%),
for income from taxation year 2021 and
v) twenty-five cents
cent (25%), for the income of the 2022 taxation year and the
years
Proposed provisions result in annual revenue loss
Budget of the State, from the taxation year 2023, to the amount
About 450 million euros, or about 142 million euros for
the 2019 taxation year, at around 247 million euros
in 2020, to approximately 371 million euros for the fiscal year 2021 and to
Approximately 515 million euros for the fiscal year 2022.
The above budgetary effect depends on its implementation
Article 58 (1) of Law 4172/20, in force, which is governed by the
precondition for non-divergence from budgetary objectives, such as
were placed in the MCAA 2031-2031.
EXPLANATORY STATEMENT
Article …
Amendment to section 58 of the Income Tax Code
The proposed provisions gradually reduce the tax rate of commercial profits made by legal persons and legal persons from 29% currently in force to 25% for income earned from the tax year. 2022. The rate is reduced by one percentage point per year, from the income of the 2019 taxation year, for which the tax rate is set at 28%. The purpose of this provision is to reduce the tax burden of legal representatives and entities, thereby boosting the investment and competitiveness of companies.
Athens, November 5, 2018
The Minister of Finance
AMENDED – REPEALED
Article 58 (1) of Law 4172/2002:
For income earned up to 31.12.2018:
"1. Profits from activities acquired by legal persons and legal persons holding a duplicate copy, as well as by legal persons within the meaning of Article 45 (c), reproduced in duplicate, are taxed at the rate of twenty-nine percent (29%). The profits of the commercial activities acquired by persons liable in the cases referred to in Article 45 (b), (d), (e), (f) and (g) which keep duplicate books shall be taxed at the rate of 29%. "
For income earned during the tax year beginning 1.1.2019 below:
"(Ia) Profits from commercial activities acquired by legal persons and legal persons holding dual copies, as well as by the legal persons referred to in Article 45 (c) which are held in duplicate, are taxed at a rate of twenty-six percent (26%)., with the exception of credit institutions in case b. Profits derived from a professional activity acquired by persons liable for Article 45b, d, e, f and g who keep duplicate books are taxed at the rate of twenty-six per cent (26%). "
Article …
Amendment to section 58 of the Income Tax Code
Paragraph 1 of Article 58 of Law 4172/2013 (Α Α 167) is replaced by the following:
"(Ia) Profit from an activity acquired by legal persons and legal persons holding two-handed books, with the exception of the credit institutions referred to in (b) of this paragraph, and the Section 45 (b), (c), (d), (e), (f) and (g), which are kept in duplicate, are taxed at the rate of twenty-nine percent (29%). for the 2018 taxation year, eight percent (28%) of revenues for the 2019 tax year, twenty seven percent (27%) of revenue for the year. taxation year 2020, twenty-six percent (26%) of income for the 2021 taxation year, and (25%) for the income of the 2022 taxation year; b) the credit institutions of subparagraph 1 of paragraph 1 of Article 3 of Law 4261/2014 are taxed at the rate of twenty-nine percent (29%). ".
The Minister of Finance
SPECIAL REPORT
(Article 75 (3) of the Constitution)
An amendment to the draft law "Air pbadenger lists – Adaptation of the legislation to Directive (EU) 2016/681".
The provisions of the proposed amendment entail a loss of annual revenue from the state budget, starting from the 2023 taxation year, rising to around 450 million EUR. , rising to around EUR 142 million for the 2019 taxation year, to EUR 247 million. approximately for the fiscal year 2020, approximately 371 million euros for the fiscal year 2021 and approximately 515 million euros for the fiscal year 2022.
The loss of income above will be replenished by other sources of income in the state budget.
Athens, November 2018
TITLE OF THE BILL
REFERENCE SUMMARY
ON THE CONTENT OF THE MAIN EVALUATION:
Adjustment of the tax rate of the results of the business acquired by legal persons and legal persons for the 2019 taxation year and the following taxation years.
REFERENCE SUMMARY
IN OTHER PARAMETERS INCLUDED IN
PROPOSED BILL:
A: SETTING THE MAIN EVALUATION
1. Necessity
1.1. Describe the problem (economic, social or otherwise) that requires promoting and voting the evaluated regulation
The proposed provisions gradually reduce the tax rate
profits from commercial activities acquired by corporations and corporations from 28% for the 2019 taxation year to 25% for the 2022 taxation year in order to reduce the tax burden of these persons.
1.2. Indicate the objectives pursued by the evaluated regulation, including, in addition, any qualitative and quantified element of the objectives and the results sought.
The proposed provisions define the relevant legislation to reduce the tax burden of legal persons and legal entities so that the tax rate is an incentive to invest and improve its competitiveness.
1.3. Describe in detail the social and economic groups that directly affect and those that indirectly influence the regulation being evaluated and determine the ratio of influence.
2. convenience
2.1. Indicate, where appropriate, previous efforts to solve the same problem or a similar problem in Greece and describe in detail the positive and problematic aspects of these efforts.
2.2. Please give at least one example of treatment of the same problem or similar problem in a country of the European Union or the OECD (if any), specifying the reasons why you have chose this country.
2.3. List in detail the decrees and regulatory acts that must be promulgated to fully apply the evaluated regulation and describe for each of them the issues to be taken into account when implementing the regulation.
3. Consequences in the economy
3.1 Indicate in detail to which categories of companies the noted regulation applies
Legal entities and legal entities.
3.2 Analyze the effect of the evaluated regulation on the market structure
3.3 Measuring installation costs for new businesses before and after the badessment, using the "standard cost model"
3.4 State in detail the effect of the proposed regulation on the production and marketing functions of businesses
3.5 Please explain in detail and justify the effect of the evaluated regulation on the competitiveness of enterprises.
3.6. Identify the administrative burden of business caused or eliminated by the proposed Regulations by applying the "Standardized Cost Model"
3.7 Identify in particular and measure in detail and separately the costs and benefits of the proposed regulation for small and medium-sized enterprises
3.8. Please specify in detail the benefits or burden that the state budget should suffer as a result of the arrangement in question
The provisions of the proposed regulation should reduce revenue from the state budget.
3.9 Identify in detail the implications of the proposed regulation for the national economy
4. Implications for society and citizens
4.1. Report the expected effects of the proposed regulation on society in general and on the social groups concerned
4.2. Please indicate the current data for each sector and social group concerned by the evaluated regulation, as they result from the Greek statistical service.
4.3. Describe separately and in detail the benefits to be expected from the proposed settlement for the citizen
4.4. Indicate the points of the settlement proposal that result in improved state services to the citizen
4.5 Give the points of the proposed regulation that simplify administrative procedures
5. Consequences on the natural and cultural environment
5.1. Describe separately and in detail the expected impacts of the evaluated regulation on sustainable development, improving the quality of the environment and reducing environmental risks.
5.2. List the key points of the environmental impact badessment of the proposed regulation (if applicable)
6. Consequences of the public administration and the administration of justice
6.1. Describe separately and in detail the expected consequences of the evaluated regulation to improve the functioning and efficiency of the public administration.
6.2. Report the expected consequences of the adjudicated regulation on how justice is done (if any)
7. Legality
7.1 Please indicate the scope of the provisions of the Constitution in which the proposed arrangement may be included
7.2. Indicate any case law of the national courts, and in particular the Special Supreme Court, the Territorial Council, the Supreme Court or the Court of Auditors, on matters concerning the proposed regulation
7.3. Please indicate the relevant provisions of Community law and international conventions ratified by Greece, as well as any case law of the Court of Justice of the European Communities.
7.4. Indicate any relevant provisions of the European Convention on Human Rights and the case law of the European Court of Human Rights.
8. Competence
8.1. Indicate the ministries responsible for the design and promotion of the evaluated by-law, justifying specifically the reasons for co-responsibility
8.2. Please indicate the biological units with which the responsible ministry has cooperated during the preparation phase of the agreement to the study.
Directorate General of Tax Administration
8.3. Please provide details of the services that will be responsible for the implementation of each separate action arising from the arrangement under examination
8.4. If the proposed regulation provides for the creation of a new body, service, corporation, committee, board or other collegiate body, please summarize the opinion of the Interdepartmental Committee on the decision of the Prime Minister Y189 / 18-7- 2006 (Official Journal B 953) and attach the feasibility study and the economic and technical study
9. Compliance with legislative rules and codification
9.1. Indicate the legislative rules that were applied when drafting the proposed provision, referring to the instructions manual of the Central Legislative Committee (KEN).
9.2. Identify the provisions that modify, replace or delete the proposed arrangement, and indicate in particular if there is already a code of arrangement for the proposed project.
9.3. Indicate the general improvements made by the Bill to the legal system, and in particular the provisions that codify or simplify
9.4. Identify the provisions of the proposed regulation that indirectly modify the existing provisions without explicitly deleting them and without justifying this option
10. Transparency – Social Participation
10.1. Please indicate in detail the social partners and, in general, the stakeholders invited to participate in the consultation on the proposed regulation.
10.2 Describe in detail the location, time and duration of the consultation, the participants and the consultation process chosen
10.3. Refer to the results of the consultation, outlining the main points of view expressed in favor and against the proposed regulation or specific issues.
10.4. Please indicate the planning of the social dialogue and consultation and the implementation phase of the proposed regulation
B: EVALUATION OF OTHER PROVISIONS
11. General evaluation
11.1 Describe separately and in detail the problem that each "other provision" in the proposed bill
11.2 Describe separately and in detail why an "alternative" provision is necessary and appropriate to solve the problem
11.3 Indicate separately for each "other provision" the reasons for which it was included in the bill
11.4. Indicate separately and in detail the expected consequences of any "other provision", including for the economy, society and citizens, as well as for the natural and cultural environment
11.5 Please provide details of the services that will be responsible for implementing any "other provision".
12. Transparency and consultation
12.1. Please indicate briefly the social partners and, in general, the stakeholders invited to take part in the consultation on each proposed "other provision", the place, the time and the duration of the consultation, the participants and the chosen consultation process, justify these options.
12.2 Briefly describe the main points of view expressed in favor and against the proposed regulation or sub-themes and attach here the views of the stakeholders who took part in the consultation for each "other provision" separately.
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