Emergency Measures Against COVID-19 in Cyprus

Tasos Constantinou

tasos@nconstantinou.com

N Constantinou & Co Audit Ltd

www.nconstantinou.com

The government of the Republic of Cyprus announced a package of measures aimed to suppress the spread of COVID-19 and to support individuals and businesses affected by the virus.

This article outlines some of the most important measures which aim to support businesses and in general the Cyprus Economy which include:

  • The suspension of the increase of General Healthcare System Contributions for a period of three months.
  • All performing business and public loans (capital and interest) are frozen for nine months, subject to the borrower submitting a written request to this end.
  • Temporary suspension of the obligation to pay VAT for reasons of business liquidity, without the imposition of any penalties and interest for the periods ending 29 February 2020, 31 March 2020 and 30 April 2020, until 10 November 2020, provided that the relevant VAT returns are submitted within the prescribed deadlines.
  • Extension of the deadline for submission of tax returns for the years 2018 and 2019 as well as the deadline for settlement of tax liabilities.
  • The law for settlement of overdue taxes has been amended therefore tax returns up to and including 2015 may be submitted up to 30 June 2020 in order to qualify for a payment plan.
  • The extension of the date of payment of the Cyprus Registry Maintenance Annual Fee and the tonnage tax of Cyprus ships for the year 2020 from 31st March 2020 to 31st May 2020.
  • Emergency measures taken by the Ministry of Labour, Welfare and Social Insurance which include:
  • special unemployment benefit to employees under the plans for complete or partial suspension of businesses’ operations
  • special sickness benefit for those infected by COVID-19 or being under quarantine
  • special leave for the care of children
  • special benefit for self-employed individuals who have complete or partially suspended their business
  • Any eviction process for premises built until 31 December 2019 shall be suspended and new eviction orders will not be issued until 31 May 2020
  • Settlement of overdue contributions to social insurance related funds for the months of March and April 2020 will be suspended and the deadline for settlement is extended by two months.

Date of accuracy as of 25th May 2020

  • The extension of the deadline for submission of tax returns for the years 2018 and 2019 as well as the deadline for settlement of tax liabilities.
  • Emergency measures taken by the Ministry of Labour, Welfare and Social Insurance which aim to avoid the dismissal of employee and to support the liquidity of businesses.


XLNC ARCHIVE | 29 May 2020

 

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