The reduction of the profit tax from 25% to 16%, which came into force at the beginning of this year, will also lead to a decline in the amount of aid small and medium-sized enterprises can get for their investments paid for with the reinvested profit. The option of recovering the tax on reinvested profit was granted to SMEs through Government Decision 1,461/2004. This programme allowed eligible beneficiaries to recover amounts up to the amount of tax on reinvested profit. Since the tax quota has been reduced, SMEs will now only get back up to 16% of their investments this year, compared with 25% last year. This will not affect investment made before January 1 and for 2005 a company can still get the 25% paid for reinvested profit in the last quarter of 2004. ZF
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