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New set of measures announced by the Greek Prime - Minister to support the economy due to the coronavirus epidemic

Monday, July 13, 2020

A new set of supporting measures, aiming to boost the country’s economy, and especially employment and entrepreneurship, was recently announced by the Greek Prime – Minister, Mr. Kyriakos Mitsotakis.

The new package of measures includes regulation of 4 basic and important facilitations to the country’s businesses and employees:

1. Reduction or even total relief from obligation to pay income tax advance

The Ministry of Finance will introduce a personalized mechanism, that will provide gradual reduction of income tax advance payments for businesses, freelancers and merchants, prorated to the losses they have suffered due to the coronavirus epidemic.

In view of this, some businesses may even be totally relieved from the obligation to pay any income tax advance, in case their economic data show either extremely low earnings or damages. The economic data (revenue and VAT) which are going to be used in order for the relevant calculations to take place, are the ones already declared to the competent economic authorities by businesses severely affected by the crisis, corresponding to the first five (5) months of 2020.

2. Reduction of social security contributions

The Government plans to introduce reduction of social security contributions, by 5 percentage points within 4 years.

3. Incentives in order for more businesses to enter the “Syn-Ergasia” labor scheme

Participation of the State in “financing” part of the reduced salary of employees who have been submitted by their employers under the “Syn-Ergasia” labor mechanism, is currently 60% of the amount corresponding to the reduced part of the employee’s salary. The Government intends to increase said supporting percentage, by taking it to 70% - 80%.

Moreover, duration of the State financing which ends on 31 July 2020, will be further extended until September, whereas operation of the labor scheme may be prolonged even later than 15 October 2020.

4. Third round of returnable deposits

Within August, a new round of the program providing returnable deposits to touristic and seasonal businesses will be in place, so that beneficiaries may receive low-interest State loans, in order to boost their liquidity and improve their business activity.

The legislation introducing all the above measures is expected to be enacted soon.