Recovery of the Greek Economy

FISCAL GOVERNANCE WILL FURTHER SUPPORT ECONOMIC GROWTH The authorities will maintain a prudent fiscal stance, aimed at (i) supporting economic recovery - with a focus on tax reduction - while (ii) preserving the sustainability of public finances The authorities are revamping Greece tax structure ... • The ongoing tax reforms will be pursued, so as to: ✓ Accelerate economic growth and create new, well-paying jobs ✓ Reduce tax evasion ✓ Support external balance ... and preserving fiscal sustainability • The authorities aim at reducing fiscal deficits in 2022 and reaching realistic primary surpluses from 2023 onwards • This will be supported by the roll-out of support measures and the rebound in activity. The fiscal path will be calibrated to support growth recovery, in coordination with the European partners PERMANENT TAX CUTS ✓ Reduction of the ENFIA - on average - by 22% - Reduction of the introductory tax rate on individuals (from 22% to 9%) – increase of the tax-free rate for each child ✓ Reduction of the profit tax rate for all companies (from 28% to 22%) ✓ Reduction of the tax rate for dividends (from 10% to 5%) ✓ Reduction of the advance tax rate for independent workers (from 100% to 55%) ✓ Reduction of the advance tax for legal entities (from 100% to 80%) ✓ Reduction of social security contributions (by 1%) ✓ Low tax rate (10%) for all agricultural schemes ✓ Continuation of the reduced VAT (by 30%) in 5 Greek islands NON-PERMANENT TAX CUTS (to become permanent depending on fiscal space) Suspension of the payment of a special solidarity contribution to the private sector (for 2021 and 2022) Further reduction - by 3ppts - of social security contributions for private sector employees (for 2021 and 2022) Reduction of VAT on transport, coffee and non-alcoholic beverages, cinemas (end-September 2021) Reduction of VAT on the tourist package (end-December 2021) Source: Ministry of Finance || RECOVERY OF THE GREEK ECONOMY 6

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