Government unveils bill on minimum tax rate for multinationals
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 Pillar II directive (EU 2022/2523) is a significant step towards dealing with the problem of tax avoidance and unfair tax competition on a global scale. This new system implements a global minimum tax level, a real tax rate of 15% on multinational enterprises and large scale groups. The new system has been adopted by 132 countries so far and it is mandatory for EU member-states from January 1, 2024.
In Greece, based on 2022 data, there are 19 Greek groups and 900-950 subsidiaries of foreign groups with a consolidated turnover of 750 million euros for at least two out of the four years before 2024. The corporate tax rate in Greece remains at 22%. The adoption of the EU directive will not lead to an exit by foreign business groups, while additional tax revenue resulting from the implementation of the new legislation is estimated at 80 million euros.
The draft law was presented during a cabinet meeting by Finance Minister Kostis Hatzidakis and Deputy Minister Harry Theoharis.
“Our country integrates a European directive introducing a supllementary tax up to 15% on multinational enterprises and large-scale groups which pay lower taxes for reasons of unfair tax competition. Supporting business activity is a stable policy of the government, along with an effort to attract investments. But this must be separated from efforts for tax avoidance,” Hatzidakis said.
“These practices are sought to be dealt with by the European Union and Greece integrates this directive not only for reasons of institutional obligation but for reasons of tax justice as well.”
[AMNA]
