Income tax reduction of 30% or 50% for up to 9 years is provided for in the bill of the Ministry of Finance for businesses "Incentives for business development, through partnerships and / or corporate transformations".

The bill provides for tax incentives for small businesses and professionals to merge. The government's goal through the bill is to create larger companies, more resilient to economic turbulence. Companies that will become more extroverted and increase their competitiveness and productivity, enhancing jobs. The broader goal is to change the country's production model.

Through mergers, the tax rate is reduced to 15.5% for businesses and professionals and to 11% for farmers from the current 22%, provided that the new company to be created stays for at least five years.

The conditions for a lower tax on businesses

(1) "New company" means a company resulting from any form of business transformation, including corporate transformations of law 4601/2019 (A' 44) and the contribution of a sole proprietorship to any form of existing ή new company .

(2) The company shall have a duration of at least five years from the date of conclusion of the agreement or the establishment of the legal person or legal entity.

(3) The total average turnover of the participating companies, taking into account the preceding three years, shall be at least equal to 150% of the turnover of the company with the highest average turnover among the cooperating companies of the last three years.

4) The new company employs more than 9 full-time employees.

5) In the case of cooperation of natural persons, mainly farmers, the incentive of exemption from the payment of income tax at the rate of 50% of the profits, which arise from the exercise of an individual agricultural business activity, is provided, based on tax legislation, under conditions.

(6) In the case of a business transformationthe tax benefit cannot exceed the total amount of 500,000 over 9 years while in the case of cooperation between persons, the tax benefit may not exceed EUR 125 000 for each of the cooperating persons, calculated on the profits arising from the cooperation for each of them, over a period of three years.