Corporate income tax rate (CIT): the nominal CIT shall be gradually reduced over the next four years to 25%, as follows:
28% for fiscal year 2019,
27% for fiscal year 2020,
26% for fiscal year 2021 and
25% for fiscal years 2022 onwards.
CIT was set at 29% for income arising within fiscal years starting as of 1 January 2015 until 31 December 2018. The reduced rates do not apply for credit institutions for which the 29% rate remains unchanged.
Withholding tax on dividends: A reduction of the currently applicable income tax rate on dividends and other profit distributions from 15% to 10% was recently introduced. The reduced tax rate is applicable for dividends distributed from 01.01.2019 onwards.
Two major corporate law reforms have been implemented within 2018-2019. In a nutshell, the legal framework applicable to Greek Sociétés Anonymes was reformed with effective date 01.01.2019, as well as the legal framework of corporate restructurings which covers domestic mergers, demergers, spin offs and conversions. Although the reforms do not contain tax rules, it remains to be seen how the provisions of such new laws will affect, going forward, some tax matters.