Dividend and Income Tax cuts by January 1st

Top Channel has learned that the government is reviewing two variants, one that gets it under 8%, and one that reduces it to 10%. The final variant will be made official by the Prime Minister in the upcoming days when the new fiscal package will be announced to the public.

A lower dividend tax helps especially bigger businesses, but the government considers it a compensating measure that comes after reducing taxes for small businesses.

A tax that will enter in effect next January reduces income tax for small and middle businesses threefold.

The income tax on these businesses is currently 15%. Next January it will be lowered to 5%, a measure that will make 10,000 smaller businesses benefit.

This is a very sudden and strong turn, since the Rama government increased both of these taxes in 2014, right after coming to power. Is this a mea culpa for the tax policy that they used?

The government explains that the tax raise in 2014 was obligatory, in order to not let the state go bankrupt. But now that public finances are stabilized, there is more room to let businesses pay lower taxes.

Top Channel