Corporate tax

The government is to impose an additional 15% tax on multinational companies and their subsidiaries operating in Greece with annual revenues exceeding 750 million euros.

The Greek government on Tuesday presented a draft law to integrate a European directive on implementing a minimum tax rate on mutinational enterprises and large-scale domestic groups which could lead to a supplementary tax of up to 15% on profits.

The government will broaden the tax base and increase the share of direct taxes, Vice President Cevdet Yılmaz has said.

"There have been criticisms such as 'too high a tax burden,'" Yılmaz said on Dec. 12 during his speech in the parliamentary talks on the government's 2024 budget.

Rough estimates of tax evasion put it at between €8-10 billion. But recent data show that tax compliance is increasing, which accounts for higher than expected revenue in the first seven months of the year.

Data also show that compliance is higher among businesses than among individuals.

Greece has extremely few rich people - if the official declarations of income and property are anything to go by.

The numbers from the tax declarations highlight several Greek "peculiarities": On paper, Greece has hardly got any rich individuals. Only 27,000 taxpayers declare an individual income of more than 100,000 euros, while four out of 10 appear to live on €5,000 a year.

According to the agreement, countries would retain their sovereign right to offer lower corporate tax rates, but if that rate is lower than 15 per cent, other countries would have the right to collect the difference.

But Warsaw is flexing its muscles to lash out against the EU more generally. The PiS government has rejected the judgments of the Court of Justice of the European Union (CJEU) on its reforms of the judiciary. And Warsaw refuses to pay the penalties imposed by the CJEU, which to date amount to over 130 million euros.

Leaders of the world's biggest economies on Oct. 30 endorsed a global minimum tax on corporations, a linchpin of new international tax rules aimed at blunting the edge of fiscal paradises amid skyrocketing profits of some multinational businesses.

The leaders of the world's largest economies today supported the imposition of a minimum tax rate on corporations, the Associated Press reported.

The agreement reached at the G20 summit in Rome aims to establish international tax rules so that multinational companies cannot avoid taxation by registering in offshore territories.

US President Joe Biden's tax plan has been accepted by 130 countries worldwide including India and China. These nations will implement a global minimum corporate tax rate and duties on multinational giants from 2023, the Organization for Economic Cooperation and Development (OECD) said.