Understanding the corporate income tax and other relevant business taxes is crucial for businesses operating in Greece. Alongside the corporate income tax, businesses should be aware of other taxes such as VAT, withholding tax, social security contributions, property tax, stamp duty, and capital gains tax. It is advisable to consult with a tax professional or refer to the official website of the Greek tax authority for the latest tax regulations, guidelines, and requirements.
Corporate Income Tax:
Greece operates on a worldwide income tax system, meaning that resident companies are subject to tax on their worldwide income, while non-resident companies are taxed only on income derived from Greek sources. The corporate income tax rate in Greece is currently 24% (as of the knowledge cutoff in September 2021).
Types of Business Taxes in Greece:
- Corporate Income Tax: The corporate income tax rate in Greece is 24%. This tax is levied on the profits generated by businesses operating in the country.
- Value Added Tax (VAT): VAT is a consumption tax applied to the sale of goods and services. In Greece, there are several VAT rates, including a standard rate of 24%, a reduced rate of 13% for certain goods and services, and a super-reduced rate of 6% for essential goods and services.
- Withholding Tax: Greece imposes withholding tax on certain types of income paid to non-resident individuals or companies. The rates vary depending on the nature of the income, such as dividends, interest, royalties, or services.
- Social Security Contributions: Businesses operating in Greece are required to make social security contributions on behalf of their employees. These contributions fund various social security benefits, including healthcare, pensions, and unemployment benefits. The contribution rates are calculated based on the employee's salary and the type of employment.
- Property Tax: Property tax, known as ENFIA (Single Real Estate Property Tax), is imposed on the ownership of real estate properties in Greece. The tax amount is determined based on factors such as property size, location, and value.
- Stamp Duty: Stamp duty is payable on certain legal documents, such as contracts, deeds, and agreements. The rates vary depending on the nature and value of the document.
- Capital Gains Tax: Capital gains tax is applicable to the sale of certain assets, such as real estate, shares, and securities. The tax rate depends on the type of asset and the holding period.
Greek Tax Authority Website:
For comprehensive and up-to-date information on business taxes in Greece, it is recommended to visit the official website of the Greek tax authority.
Greek Tax Authority Website: Official Greek Tax Authority Website
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