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Tax Reforms in "Final" Bailout Package for Greece — Orbitax Tax News & Alerts

Following the rejection of the {News-2015-06-24/P/2- tax reforms proposed by Greece on 22 June 2015} in order to extend its bailout, the Greek government has decided to hold a public referendum on whether or not to accept the counter proposal made by the European Commission. Key measures of the proposed package include:

  • Increasing the corporate tax rate from 26% to 28%;
  • Requiring 100% advance payment of corporate income and individual business income tax by the end of 2016;
  • Increasing the VAT rate on restaurants to 23%;
  • Repealing the reduced VAT rate that applies for certain islands; and
  • Phasing out tax breaks for the shipping industry

The package also calls for other reforms of Greece's income tax code and pension system, and the implementation of a new criminal law on tax evasion and fraud.

Greece, which has already missed a payment deadline of 30 June, will hold the referendum on whether or not to accept the latest bailout package on 5 July 2015.