Greece 'Being Forced to Cancel' Witholding Taxes on Sources Abroad

Finance | August 13, 2015, Thursday // 11:45|  views

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Greece might be forced into abandoning the 26% withholding tax it imposed in March on all transactions from sources in Bulgaria, Cyprus and Ireland, recent media reports suggest.

A copy of the document agreed by Greece and international lenders earlier this week and obtained by FT suggests the government in Athens will have to apply a host of measures in order to receive EUR 86 B in funding.

Reversing the introduction of cross-border withholding taxes which Greek companies operating abroad were levied is apparently among the actions the cabinet of Prime Minister Alexis Tsipras will have to take.

Bulgaria had consistently reiterated its view that the tax contravenes EU law and had sent a letter to the European Commission to make its point, calling the move "discriminatory and disproportionate to the intended goals".

The country levies a flat 10% tax on corporate profit, one of the EU's lowest (at just 10%) along with Ireland (12.5%) and Cyprus (also 12.5%).

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Tags: greece, withholding tax, corporate tax, Bulgaria, Cyprus, ireland, international lenders


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