The Council of Ministers at its meeting on February 22, 2023, approved a bill amending the Income Tax Act to grant an additional tax exemption in the form of a capital deduction for certain capital expenditures in order to encourage energy upgrading and energy saving by businesses.
With regard to improving the energy efficiency of buildings, an increased capital allowance of 7% (instead of 3% granted under the current legislative framework) is granted on specific capital expenditure incurred within the tax years 2023, 2024 and 2025.
Furthermore, for machinery and equipment linked to renewable energy systems, as well as technical systems for improving energy efficiency, an increased capital allowance of 20% (instead of 10% granted under the current legislative framework) is granted on capital expenditure incurred within the tax years 2023, 2024 and 2025.
Finally, for new motorised electric commercial vehicles, as well as taxis and buses, an increased capital allowance of 25% (instead of 20% granted under the current legislative framework) is granted on capital expenditure incurred within the tax years 2023, 2024 and 2025.
(ΕΠ/ΣΧ)
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