International Tax Competitiveness Index 2020: Greece ranks 29th over 36 countries of OECD
Greece ranks 29th overall on the 2020 International Tax Competitiveness Index, the same as in 2019.
Some strengths of the Greek tax system:
- The personal tax rate of 5 percent on dividends is below the OECD average of 23.9 percent.
- Labor tax complexity is below the OECD average.
- Controlled Foreign Corporation rules in Greece are modest and only apply to passive income.
Some weaknesses of the Greek tax system:
- Greece has an above-average corporate tax rate of 24 percent (OECD average is 23.3 percent).
- Companies are severely limited in the amount of net operating losses they can use to offset future profits, and companies cannot use losses to reduce past taxable income.
- At 24 percent, Greece has one of the highest VAT rates in the OECD on one of the narrowest bases.
KEFiM’s president Alexander Skouras made the following statement:: “Greece’s ranking in the Tax Competitiveness Index underlines the huge gap that our country has to overcome in order to become attractive for investments and create new jobs, but also to ensure a substantial higher income for Greek women and men. Especially in the fields of consumption and property taxes, but also in the taxation of business activity, the conditions for a strong relief have matured, in combination with a corresponding reduction of the size of the state, in order to release the creative forces of our society”.
For the seventh consecutive year, the country with the highest rated tax code in the OECD is Estonia, with Italy taking the last position.
Learn more about Tax Foundation on their website.
Find the complete International Tax Competitiveness Index 2020 study here.
The Index in Greece is released by KEFiM – Markos Dragoumis.