Greece will introduce a one-time tax on corporate profits in 2010 as part of a three-year plan to reduce the deficit and secure a loan package agreed upon between the EU and the IMF, according to a bill submitted by the Greek government to parliament on Tuesday.
"The one-time tax on net profits will be charged at rates ranging from 4 percent for profits up to 300,000 euros, to a maximum rate of 10 percent for profits exceeding 5 million euros," states one article of the bill. The Ministry of Finance announced that parliament will vote on the strict budgetary austerity measures agreed upon as part of the EU/IMF financial assistance package in an expedited procedure at the session on Thursday.
The three-year program agreed with the European Central Bank (ECB), the International Monetary Fund (IMF), and the European Commission will allow this heavily indebted country access to loans of up to 110 billion euros. This plan, which aims for budgetary savings of 30 billion euros by 2013, also includes an increase in value-added tax (VAT), higher excise duties on fuel, tobacco products, and alcohol, as well as reductions in pensions and salaries in the public sector. The one-time corporate profit tax in 2010, ranging from 4 to 10 percent, also includes medium tax rates of 6 percent for amounts from 300,000 to 1 million euros, and 8 percent for net profits from 1 to 5 million euros. (H)
