Greece announces additional measures to support the economy
The Ministry of Finance of Greece has published information on its four-phase plan to support the economy. We present to your attention the key points:
- Employment support will be extended;
- Suspension of payment of tax arrears for the month of June for closed enterprises and enterprises in the field of tourism, catering, transport, culture and sports;
- 40% rent reduction for affected businesses extended to June. In addition, this will affect the sectors of tourism, catering, transport, culture and sports for July and August;
- Assistance to property owners who rent property to enterprises, including suspension of tax payments;
- Reduction of advance tax payments for 2020 and 2021 for companies that showed a decrease in turnover in March, April and May 2020;
- There are a number of reductions in the VAT rate, which include a reduction in the rate for certain types of supplies from 24% to 13% from June 1 to October 31, 2020.
- The VAT rate on travel packages has also been reduced from 80/20 (80% at 13% and 20% at 24%) to 90/10 from June 1 to October 31, 2020; and
- A tax deduction of 30% for R&D expenses will be increased to 100% for expenses incurred from September 1, 2020.