Greece Outlines Plan To Cut Corporate Tax Rate By One-Third

by Lorys Charalambous, Tax-News.com, Cyprus

25 August 2004

Greek Finance Minister George Alogoskoufis announced on Monday that the nation’s corporate tax rate will be cut by almost one third to 25% over the next three years.

"In the next three years we will...reduce the corporate income tax rate from 35% to 25% and we will simplify tax procedures," Alogoskoufis told a meeting of the Athens Business Club 2004, a business forum launched ahead of the Olympic Games.

Whilst the Greek economy has benefited from the massive sums of public investment needed to stage the Games, foreign investment has not been so forthcoming, in large part due to the high level of taxation.

At 35%, Greece’s corporate tax rate is almost on a par with Germany and France, where the EU's highest company taxes are to be found.

The announcement by the minister goes some way towards fulfilling a pledge by the conservative government, elected in March, to cut 10% of the tax rate as the centrepiece of its economic reforms.

The Athens Business Club, which is active throughout the duration of the Games, aims to furnish members with information on Greece, its government, its economy, specific business sectors, companies and major public and private organisations.

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