As in most developed countries, taxation in Greece is based on the direct and indirect system. Examples of direct taxes are income tax and real estate tax. Examples of indirect taxes are VAT and service taxes. The tax administration in Greece is a competency of the Ministry of Finance.
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Income from paid employment, entrepreneurial activities, and pensions is subject to income taxation. The rates start at 22% for an annual income of up to 20,000 Euros and go up to 45% for an annual income above 40,000 Euros. A special solidarity tax applies for income above 12,000 Euros per year and ranges from 2.2% to 10%.
Tax declarations are required to be submitted by 30 June of the following year. Foreign residents must submit an income tax declaration in Greece if income is obtained in this country.
Greek businesses and corporations are obliged to pay taxes on their income in Greece and from abroad. Companies from overseas, which operate in Greece, are taxed only on that income, which is generated in Greece. As of 2019, the corporate income tax is 28%. However, the government is planning to reduce this amount to 25% by the year 2022.
There are a few cases of tax exemptions under the Greek taxation system, including:
The examples of tax deductibility in Greece are similar to those of other Western European and North American nations:
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