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Greece’s PM announces lower taxes, social security contributions

Prime Minister Kyriakos Mitsotakis announced on Thursday five measures to lower taxes and social security contributions for workers and businesses. The package of reductions is worth 2.5 billion euros.

He said the measures will allow companies that sustained losses during the pandemic to return to profitability and will also pump liquidity into the economy, as well as greatly increasing the prospects for a dynamic recovery and for attracting investments.

Among the planned measures is the permanent reduction from this year of the tax advance paid by individual entrepreneurs, from 100% to 55%. Tax advance for legal entities is reduced from 100% to 70% in 2021 and permanently from 2022 to 80%.

He also announced a lowering of business tax rates to 22% and the reduction of social insurance contributions of private-sector employees by 3 percentage points in 2022.

The suspension of the special solidarity tax in the private sector is extended to 2022.

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