Flat tax

With the pre-election race heating up in Greece, the three largest political parties are seeking to highlight their tax policies.

Frontrunner New Democracy wants an increase in the tax-exemption limit for families with children, the gradual abolition of the fee for practicing a profession ("telos epitidevmatos") and a reduction in documentation requirements.

Apart from the reduction of the corporate income tax from 28 to 24 percent and the halving of the tax on dividends from 10 to 5 percent, the government's draft tax bill includes a number of other incentives aimed at encouraging entrepreneurship, attracting highly skilled workers in Greece and bolstering investment activity to accelerate growth.

A reduction in business tax from 28 to 24 percent for 2019 and incentives to link large investments to a reduction in taxable foreign income are some of several incentives for investments are some of the measures the government is seeking to introduce in a new draft bill that was presented for public consultation late on Thursday.

Greece will offer tax incentives to lure wealthy individuals to move their tax residence to the country as part of draft legislation on tax relief set to be announced on Thursday, a senior government official said.

Greece's conservative government is keen on attracting investments to boost the recovering economy's growth prospects.

Freelance professionals and all personal enterprises in general are the biggest winners of the new tax bill. As of 2020 they will enjoy a reduction in their tax bills amounting to or in some cases even exceeding 1,300 euros each, thanks to the slashing of the basic tax rate from 22 to 9 percent.

Bulgaria has made very limited progress on reforms in the economy and this has led to weak investor interest in your country. Such an opinion expressed to Darik news the American economist, Prof. Steve Hanke.

The salaries in Bulgaria are growing very fast, between 8-10% increase per year. However, they remain low compared to other EU countries. This is the comment of UniCredit Bank's chief economist, Lubomir Mitov, who presented the analysis of the bank Bulgaria, Europe and the World - Macroeconomic Review on Thursday.

BSP has given up on its idea of abolishing the flat tax. However, a "rich people tax" has to be introduced. A 20% tax will have to be paid by people with monthly income of above BGN 10,000 from wages and rent, or people with an annual income of over BGN 120,000.

The government will likely have to brace for a drop in transactions, in declared incomes and therefore in public revenues as a result of increases in indirect taxation and in salary and pension deductions for taxes and social security contributions.

A joint IMF and European Commission delegation held its first talks with Bucharest officials on Tuesday over Romania's proposal to change the fiscal code and boost disposable income and get people spending more.

The discussions, due to end on May 26, will focus also on the need for a new deal with the international lenders.