Taxation in Greece

Taxation

An aspect of fiscal policy
Policies Government revenue Tax revenue Non-tax revenue Tax law Tax bracket Tax threshold Exemption Credit Deduction Tax shift Tax cut Tax holiday Tax advantage Tax incentive Tax reform Tax harmonization Tax competition Double taxation Representation Unions Medical savings account Tax, tariff and trade
Economics Price effect Excess burden Tax incidence Laffer curve Optimal tax Theory Optimal capital income taxation
Collection Revenue service Revenue stamp Tax assessment Taxable income Tax lien Tax refund Tax shield Tax residence Tax preparation Tax investigation Tax shelter Private tax collection Tax farming
Noncompliance Tax avoidance Tax evasion Tax resistance Tax haven Smuggling Black market Transfer mispricing Unreported employment Tax shelter
Distribution Tax rate Progressive Regressive Proportional
Types Direct Indirect Per unit Ad valorem In rem Capital gains Carbon Consumption Dividend Ecotax Excise Fuel Georgist Gift Gross receipts Income Inheritance (estate) Land value Payroll Pigovian Property Sales Sin Single Stamp Steering Turnover Value-added (VAT) Corporate profit Excess profits Windfall profits Negative (income) Flat Wealth
International Financial transaction tax Currency transaction tax Tobin tax Spahn tax Tax equalization Tax treaty Permanent establishment Transfer pricing European Union FTT
Trade Custom Duty Tariff Import Export Tariff war Free trade Free trade zone Trade agreement
Religious Church tax Eight per thousand Teind Tithe Fiscus Judaicus Leibzoll Temple tax Tolerance tax Jizya Kharaj Khums Nisab Zakat
By country List of countries by tax rates Tax revenues as %GDP Albania Algeria Argentina Australia Azerbaijan Bangladesh Bhutan Bulgaria Canada China Colombia France Germany Greece Iceland India Indonesia Iran Ireland Israel Italy Japan Kazakhstan Lithuania Malta Namibia Netherlands New Zealand Norway Pakistan Palestinian territories Peru Philippines Poland Russia Singapore South Africa Sweden Switzerland Tanzania United Kingdom United States Uruguay

Taxation in Greece, as in most developed nations, is based on the direct and indirect systems.

Income tax

Income taxation in Greece is progressive. An individual in Greece is liable for tax on their income as an employee and on income as a self-employed person. In the case of an individual who is a permanent resident of Greece, their tax owed is calculated on their income earned in Greece and overseas. An individual whose income is only from a wage is not obligated to file an annual return. The employer deducts tax from the employee and transfers it to the tax authority every month.^[1]^[2]

The 2014 tax rates are as follows:^[3]

Income	Taxation
€0 – €25,000	22%
€25,001 – €42,000	32%
> €42,001	42%

In May 9, 2016 a new set of emergency measures were voted in the Parliament by the SYRIZA/ANEL government.^[4] These changes include new income tax rates as well as new solidarity tax rates. The tax rates applicable to income earned in 2016 are as follows:^[5]

Income	Taxation
€0 – €20,000	22%
€20,001 – €30,000	29%
€30,001 – €40,000	37%
> €40,001	45%

Social security tax

An employer is obligated to deduct tax at source from an employee and to make additional contributions to social security as in many other EU member states. The employer's contribution amounts to 24.56% of the salary. The employee's contribution is 15.5%.

Tax exemptions

There are several cases of Tax exemptions under the Greek taxation system, these are as follows:

Proceeds from the sale of shares that are traded on the Athens Stock Exchange.
Income from ships and shipping.
A dividend received from a Greek company.
Capital gain from sale of a business between family members, as defined by law.

Tax deductions

The examples of Tax deductibility in Greece are, as with most other features of Greek taxation, similar to that of other Western European and North American nations, that is, tax deductibility for things such as charity and other things as shown below:

15% credit on a mortgage for the first residential apartment.
15% rent paid on the main residential apartment up to maximum.
Donations to public, religious and other institutions.
Compulsory payments to social security.

Corporation tax

Corporations in Greece are taxed on their income in Greece and from overseas. Foreign companies in Greece are taxed only on income that is generated in Greece.

Corporate tax rates by year:

2007, 2008 and 2009 - 25% 2010 - 24% 2011 and 2012 - 20% 2013 and 2014 - 26% and 2015 - 29%

Capital gains tax

A capital gain in Greece is added to regular income and is taxable at the same rate as regular income for a company, other than in specific instances as defined in law.

Withholding tax

As of 1 Jan 2009, Greece imposes a withholding tax of 10% on corporate dividends, unless the dividend qualifies for application of the EC Parent-Subsidiary Directive or if a lower rate applies under an applicable double tax treaty.^[6] It also imposes a withholding tax on interest and royalties, however the tax rates may be reduced or eliminated by an applicable double tax treaty or if the payment qualifies for application of the EC Interest and Royalties Directive.^[7]^[8]

VAT

The VAT tax in Greece is 6.0% to 24%.^[9] For all goods not belonging to any special category, the VAT is 24%. For Category 1 goods the VAT is 13%, and for Category 2 goods it is 6.0%. Some items are exempt from VAT, such as medical services and education.^[10] On some islands there is a VAT reduction for Category 1 goods to 17%.

References

Greece articles

History

Chronology	Aegean civilizations Minoan civilization Mycenaean period Greek Dark Ages Archaic period Classical period Hellenistic period Roman era Byzantine era Frankish and Latin era Stato da Màr Ottoman era War of Independence Modern Greece

By topic	Constitutional Economic Military Greek countries and regions Hellenic languages Megali Idea

Geography

Politics

Economy

Society

Crime Demographics Diaspora Education Healthcare Immigration Language Minorities Religion Women

Culture	Anthem Architecture Art Castles Cinema Coat of arms Cuisine (wine) Dances Dress Flag and national colours Literature Media Modern Greek Enlightenment Music (Folk, Rebetiko) Mythology Philhellenism Public holidays Name of Greece Names of the Greeks Newspapers Orders and decorations People Sport (Olympic Games) Television Theatre World Heritage Sites

Outline
Index
Bibliography

Category
Portal

Taxation in Europe

Sovereign states	Albania Andorra Armenia Austria Azerbaijan Belarus Belgium Bosnia and Herzegovina Bulgaria Croatia Cyprus Czech Republic Denmark Estonia Finland France Georgia Germany Greece Hungary Iceland Ireland Italy Kazakhstan Latvia Liechtenstein Lithuania Luxembourg Macedonia Malta Moldova Monaco Montenegro Netherlands Norway Poland Portugal Romania Russia San Marino Serbia Slovakia Slovenia Spain Sweden Switzerland Turkey Ukraine United Kingdom

States with limited recognition	Abkhazia Kosovo Nagorno-Karabakh Northern Cyprus South Ossetia Transnistria

Other entities	European Union

This article is issued from Wikipedia - version of the 11/30/2016. The text is available under the Creative Commons Attribution/Share Alike but additional terms may apply for the media files.