Greece to reduce corporate tax rate

Greece said it will reduce the corporate tax rate by 10 percentage points over the next three years to spur investments and offset a slowdown in government spending following the 2004 Olympics.

The government will cut the 35% tax rate for corporations to 32% in 2005, Economy Minister George Alogoskoufis said at a press conference yesterday in Athens to outline new tax legislation.

The rate will fall to 29% in 2006 and to 25% in 2007, he said.