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Greece: The Ministry of Finance considers postponing the implementation of the capital gains tax

The Ministry of Finance is about to decide in favor of a new postponement of the capital gains tax on equity sales transactions. According to the current plan, the tax is scheduled to apply from 1.4.2013. However, following negative comments expressed by certain market participants (inter alia the Hellenic capital market commission, the Hellenic Exchange and institutional investors) concerning the applicability as well as the consequences of the tax, the Ministry has second thoughts, in its effort to gain some time, in order to seek ways to deal with outstanding practical problems and deficiencies of the relevant legal provisions, in consultation with the interested parties. Pursuant to a draft law recently submitted to the Parliament, capital gains arising from sales of equity will be subject to a tax of 20% for legal natural persons as well as legal entities. However, among the proposed amendments is the adoption of tax rates similar to the ones applying to real estate, i.e. 10% for an income less or equal to € 12,000 and 33% for any additional amount.

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