Greece Passes Legislation Amending Effective Date of Increased Dividends Tax, Increasing the VAT Rate, and Making Several other Changes

On 22 May 2016, the Greek parliament adopted legislation that includes a number of changes concerning income tax and value added tax. The changes are generally required as part of Greece's bailout agreement. Main changes include:

• The recently adopted increase in the dividends withholding tax rate from 10% to 15% will apply from 1 January 2017 instead of 1 January 2016;
• The increase of the VAT rate from 23% to 24% is formally effective 1 June 2016;
• The reduced VAT rates for the second group o…