Υπουργείο Εθνικής Οικονομίας και Οικονομικών

Greece’s Ministry of Economy and Finance presented the cabinet with draft legislation which aligns national law with the European Union’s Directive 2022/2523, known as Pillar II

Greece’s Ministry of Economy and Finance on Tuesday presented the cabinet with draft legislation which aligns national law with the European Union’s Directive 2022/2523, known as Pillar II.

The draft bill aligns Greece with other EU countries and the OECD initiative that seeks to tackle tax avoidance and the under-reporting of profits by large corporates. The directive has been adopted by 132 countries and has gone into effect from Jan. 1, 2024 by EU member states.

– The legislation establishes a minimum tax rate for multinationals and large domestic corporations that may result in a supplemental tax of up to 15% of profits.

– Under the bill, multinationals as well as large domestic corporations with annual turnover exceeding 750 million euros will be taxed at a minimum real rate that cannot be lower than 15%. 

Implementation of the directive may lead to a supplemental tax of up to 15% of profits in the event that corporations paid taxes that were lower than this rate.

The aim of the legislation is to limit unfair competition, where multinationals take advantage of differing taxation rates among countries.

It is reminded that the corporate tax rate in Greece remains at 22% and that there is no risk of corporations leaving the country as other EU states will also be implementing the directive.

Based on 2022 data, there were 19 Greek business groups, 900-950 subsidiaries of foreign corporate groups with turnover exceeding 750 mln euros for at least two of the last four years before 2024.  Based on this, it is projected that additional tax revenue may reach up to 80 mln euros.

 

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