8% Withholding Tax Regulation Scrapped

The Economy Ministry last month finalized amendments to the austerity tax bill introduced in March that included the revocation of the announced eight percent withholding tax on all service company invoices that exceed 300 euros.

The ministry’s amendment came after Greek enterprises -that included tourism businesses- reacted strongly to the government’s initial announcement of an eight percent withholding tax on the revenues of firms.

The Hellenic Association of Travel and Tourist Agencies (HATTA) expressed its satisfaction that the regulation from the austerity tax bill was revoked.

“The adoption of such a measure would have cost incalculable damages to all companies in the tourism industry,” HATTA said in an announcement.

When the withholding levy was initially announced, HATTA had called on the government to take back “the tax collection measure that creates more problems than it solves, hits the competitiveness of business, destroys liquidity, increases costs, and ultimately leads to the destruction of travel agencies.”

Tourism professionals had all agreed then that such an extra charge on businesses would be at the expense of free competition.

Other amendments the economy ministry made to the austerity tax bill included stricter criteria for ownership of large cars, houses, boats and aircraft presumed as evidence of income.