Greece nonetheless has a protracted technique to go when it comes to tax competitiveness, rating twenty ninth amongst 36 nations, in line with the Group for Financial Cooperation and Growth (OECD).
The annual OECD Worldwide Tax Competitiveness index evaluates its 36 member nations based mostly on taxation of companies and people, consumption taxes, property levies and tax on earnings overseas.
Far behind the vast majority of OECD members, Greece holds the identical place as final yr within the index hampering funding exercise and consumption and development. It has nevertheless improved its efficiency by 2.5 factors.
In the meantime, presenting the OECD findings this week, Athens-based impartial think-tank, the Heart for Liberal Research – Markos Dragoumis (KEFiM), mentioned Greece’s tax system was enhancing its efficiency.
Total, Greece is ranked eighth – its highest standing – amongst 36 nations when it comes to particular person taxes regardless of the present 45 p.c fee, in addition to solidarity tax and social safety contributions on high of that.
The nation’s efficiency is lagging when it comes to consumption tax, rating thirty first; property tax – thirty second; company tax – twenty second; and twenty fourth when it comes to worldwide tax guidelines.
Commenting on the rating, KEFiM President Alexandros Skouras mentioned Greece’s place “underlines the massive hole our nation should cowl to be able to change into enticing for development investments and new jobs, but additionally to make sure a considerably larger actual earnings for Greek men and women”.
Making an allowance for the truth that Greece has by no means moved above the twenty seventh spot since 2014, when the index was first introduced, the findings mirror the necessity to study taxation.
In keeping with the Tax Basis, Greece is performing properly when it comes to complexity of the labor tax, which is decrease than the OECD common; laws regarding audited international corporations in Greece, that are reasonable and apply solely to passive earnings; and the 5 p.c internet tax fee of pure individuals on dividends, beneath the OECD common (23.9 p.c).
Weaknesses, in the meantime, embody a excessive company tax fee of 24 p.c, means above the OECD common (23.3 p.c); corporations face extreme restrictions on offsetting internet working losses with future income and can’t use losses to scale back earlier taxable earnings; and lastly, Greece has one of many highest VAT charges within the OECD (24 p.c) with one of the vital restricted tax bases.