The Greek Ministry of Finance has placed the new tax bill into public consultation, outlining a comprehensive set of measures scheduled to take effect across 2026 and 2027. The legislation, aligned with the Medium-Term Fiscal Strategy, introduces amendments to the Income Tax Code (KFD), VAT Code, and Tax Procedure Code (KFD). Key provisions include revised personal income tax brackets, enhanced digital compliance requirements for businesses, and new anti-avoidance rules targeting cross-border arrangements. The bill also extends the deadline for submitting retrospective declarations for the 2020 tax year and modifies penalties for late filing. Stakeholders are invited to submit comments before the parliamentary debate expected in early November.
Key Takeaways
- Personal Income Tax Restructuring: The bill proposes a simplification of the tax scale, reducing the number of brackets and adjusting rates to provide relief for middle-income earners while increasing the top marginal rate for high-income individuals effective 1 January 2027.
- Digital Compliance Expansion: Mandatory e-invoicing via myDATA will be extended to all B2B transactions starting 1 July 2026, with real-time reporting of inventory movements required for companies exceeding €500,000 annual turnover.
- Anti-Avoidance Enhancements: New controlled foreign company (CFC) rules and hybrid mismatch provisions align with EU ATAD 2, targeting profit shifting through low-tax jurisdictions and hybrid instruments.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement