The provisions of the new Memorandum

The criteria for layoffs in the public sector will be determined in September - The hike in real estate through PPC will continue through 2014 if Greek government does not adopt the single property tax until September - Equation of objective and commercial property values

The final draft of the new Memorandum provides for the keeping of the special property tax through PPC bills in 2014 too, if the Greek government does not adopt the single property tax until the end of September 2013.

According to "Kathimerini" newspaper, the Memorandum contains a possible abolition of the real estate transfer tax in 2014. In this case there will have to be an increase of revenues from taxation of property and objective values will equate to the market prices in 2016.

More specifically, the new Memorandum states the following:

-       until the end of August the Finance Ministry must adopt measures to improve the collection rate of property tax. The draft law on the single tax for 2014 will be tabled in the Greek parliament late September. The single property tax should yield about 2.7 billion euros in 2014 and will replace the property tax and the Special Real Estate Tax. If the Greek authorities decide to reduce or withdraw the real estate transfer tax, the new flat tax will have to bring 2.9 billion euros in the State funds. The agreement with Greece’s creditors is to create a reliable system of taxing real estate properties

-       the objective property values will be equalized with market prices. By the end of 2013 the Greek authorities should create a plan that will include the necessary actions: a) the price zone will be established in January 2015 in order to accurately reflect the real estate market conditions, b) the objective property values will be aligned with market prices in January 2016

-       from early August tax authorities will have access to information related to bank accounts of taxpayers in order to identify assets of major State debtors

the Finance Ministry must file a bill in parliament by September, which will provide for tax incentives regarding investments. The current frame will be replaced with tax premiums, certain tax deductions and reduction of depreciation time limits even within the same year.