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Greece – No Changes to Income Tax and Special Solidarity Contributions for 2020

Greece – No Changes to Income Tax and Special Solidarit

Based on the recently voted Law 4618/2019, the changes planned for Greece’s income tax and special solidarity contributions rates as of 1 January 2020 have been abolished.

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Partner, Head of Tax

KPMG in Greece

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Flash Alert 2019-138

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Based on the recently voted Law 4618/20191, the changes planned for Greece’s income tax and special solidarity contributions rates as of 1 January 2020 have been abolished.  (We reported on these measures in GMS Flash Alert 2019-084, 26 April 2019.) 

WHY THIS MATTERS

This change will affect taxpayers’ and employers’ expectations as well as any plans made according to the anticipated measures that were announced earlier in the year.  Taxpayers and their tax professionals should be aware of the reversal in the plans for tax rates and the special solidarity contribution given the impact this could have on their liability, budgeting, and compliance.

As Previously Reported and Now Reversed

Income Tax/Social Solidarity Contributions

As previously reported, the income tax and special solidarity contributions progressive rates were to be amended as of 1 January 2020 depending on the level of income in accordance to the Article 12 L. 4472/2017.  (See Tables 1 and 2 in our earlier report.) 

These measures have now been reversed and no change will take place. 

KPMG NOTE

This reversal came about due to a disagreement within the Greek government concerning the measure reducing the tax-free threshold as previously imposed by the International Monetary Fund (IMF).  The move has been mostly interpreted as political.

FOOTNOTE

1  You can find Law N. 4618/2019 on the Taxheaven Web site (in Greek) by clicking herePlease note this is a 3rd party (non-governmental, non-KPMG) website.  Provision of this link does not represent an endorsement of this website by KPMG.

The information contained in this newsletter was submitted by the KPMG International member firm in Greece.

© 2021 KPMG Advisors Single Member S.A., a Greek Societe Anonyme and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

Flash Alert is an Global Mobility Services publication of KPMG LLPs Washington National Tax practice. The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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