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The recent unexpected situation with the
Covid-19 pandemic is affecting all aspects of
our lives, including our families, business and
communities. Over the past weeks, we faced
unpresented events, actions and measures
takes from various countries all in an attempt
to combat the spread of the pandemic.
Thankfully, due to the early measures applied
by Cyprus, we managed to control and limit
the spread of the pandemic in our country. As
a result, starting from Monday (04/05/2020)
Cyprus started to gradually lift these
measures in an attempt to return to our pre-
vious way of life and to restart the economy.
To support the economy, the companies and
the employment force, the Cyprus Govern-
ment including its competent authorities have
introduced several supporting measures
which covers among others special scheme,
tax measures and extensions of several regu-
latory deadlines.
Our newsletter aims to provide a brief over-
view of the supporting measures which are
available for companies and self-employed
individuals.
NEWSLETTER
QUARTER 2 2020
WHAT’S COVERED
− Revised Tax deadlines
− Changes to VAT payments
− Second phase of CGHS
contributions
− Extensions from Registrar
of Companies
− Extensions from CySEC
− Upcoming tax deadlines
− Our resources/calculators
− How we can assist
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REGISTRAR OF COMPANIES
The RoC announcement on 23 March 2020
‘Measures to assist companies that have been
affected by Coronavirus’ notes, amongst other,
the following changes in response to the COVID
-19 outbreak:
The filing of annual returns (HE32) for the
period 1 January 2020 until 31 December
2020 can be submitted until 28 January
2021 without the imposition of the €20 late
fee.
The introduction of the administrative penal-
ties for late filings of notifications which was
due to be implemented starting from 18 April
2020 (e.g. HE32, HE4, HE2, HE57, HE12 etc)
will be postponed until 18 December 2020.
The deadline for the payment of the annual
levy for 2020 is extended to 31 December
2020 without the additional charge of 10%
and 30% (regular deadline 31 July).
Copyright © 2020 Evidentrust Financial Services Ltd. All rights
reserved.
TAX DEPARTMENT
• The deadline to submit the Income Tax
Returns for Companies (T.D.4) and Self
Employed with accounts (T.D.1) for the
year 2018 has been extended to 1 June
2020 (regular deadline is 31 March
2020).
• Cyprus General Healthcare Contribution
The increased contributions to the
CGHC as part of the full implemen-
tation of the CGH system is post-
poned to commence on 1 July 2020
(initially schedule was 1 March
2020).
• VAT
Suspension until 10 November 2020
of the obligation to pay VAT for rea-
sons of business liquidity, without
any penalties and interest for the
periods ending:
− 29 February 2020,
− 31 March 2020 and
− 30 April 2020.
This is provided that the relevant VAT
returns are submitted within the right
deadlines and the company does not fall
under certain trading codes.
CYPRUS SECURITIES AND
EXCHANGE COMMISSION
• Administrative Service Providers (ASPs)
regular deadline to submit their annu-
al audited financial statements is ex-
tended to 31 July 2020.
• Cyprus Investment Firms (CIFs) regular
deadline to submit their annual au-
dited financial statements is extended to
31 July 2020 (previous deadline was 30
April 2020).
MINISTRY OF LABOUR, WELFARE AND
SOCIAL INSURANCE
The new schemes will cover the period 13/4 to
12/5 as follows:
Special Scheme for Complete Suspension of
Business
Special Scheme for Partial Suspension of Busi-
ness (25% reduction of review due to covid-
19)
Special Scheme for Self Employed Workers
Special Scheme from Unemployed Persons
Special Sick Leave Allowance
Special Leave for Child Care
More details along with the online application form
for each scheme can be found at the official site
(click here to access).
MEASURES INTRODUCED BY GOVERNMENT AND OTHER AUTHORITIES
https://www.coronavirus.mlsi.gov.cy/?lang=en
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Copyright © 2020 Evidentrust Financial Services Ltd. All rights
reserved.
MEASURES INTRODUCED BY GOVERNMENT AND OTHER AUTHORITIES
GOVERNMENT MEASURES
• Subsidies/Grands
Subsidy to be provided to very small businesses and those
who employ up to 10 people as follows:
Businesses in full suspension until May 3, 2020: €2,625
Businesses that continue to be in full suspension after
May 4, 2020: € 3,500
Businesses in partial suspension until May 3, 2020:
€1,875
Companies that continue to be partially suspended after
May 5, 2020: €2,500
Self-employed in full or partial suspension of work until
May 3, 2020: € 1,125
Self-employed who continue to be in full or partial sus-
pension of work after May 4, 2020: € 1,500
• Liquidity
Liquidity is provided to companies through guaranteed loans
of 1.5 billion Euros as follows:
300 million euros for very small businesses, which employ
less than ten people
1 billion euros in medium and small businesses
200 million euros in large companies.
The loan guarantee rate will be for very small businesses
and
self-employed employees of 85% from the state and 15%
from credit institutions, while for medium and large enter-
prises it will cover 70% of the guarantee from the state and
30% % of credit institutions.
• Rent reduction
These measure relates to owners who rent real estate prop-
erties to individuals or legal entities and plan to reduce
the
rent for a period of 3 months, to facilitate the tenants who
have been affected due to the pandemic of Covid-19.
The circular stipulates that a tax reduction of 50% of the
re-
duced rent amount will be given, subject to the conditions
that the rent reduction will not be less than 30% of the
monthly rent and will not exceed 50% of the rent.
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RESOURCES / CALCULATORS
Important for current quarter
Income Tax - Calculator
Existing
Incorporation - Calculator
Cyprus General Healthcare System - Resources
Social Insurance and Other Funds - Resources
First Temporary Tax Payment (TTP) - Calculator
Profit Extraction - Calculator
Capital Gains Tax (CGT) - Calculator and CGT - Re-
sources
Payroll Costs - Calculator
Cyprus Tax – Benefits in Kind- Resources
Benefits in Kind - Use of Car - Calculator
Second Temporary Tax Payment (TTP)- Calculator and
TTP - Resources
Deemed Dividend Distribution - Calculator and DDD Re-
sources
You can view our complete list of calculators and resources
here.
UPCOMING TAX DEADLINES
Date Description How we can assist you?
1
June
Electronic submission of the 2018 corporation tax return
(TD4) for accounting periods ending on 31 December
2019 (TD4). We can assist with your personal
income tax return completion and
submission to Taxisnet. Electronic submission of the 2018 income
tax return of
physical persons preparing audited financial statements
(annual income > €70.000).
30
June
Payment of special contribution for defence for the first
six months of 2020 on rents if such tax is not withheld
at source by tenant and on dividends or interest from
sources outside Cyprus.
We can help you estimate the SDC
and assist with the payment process.
Payment of 2019 personal income tax under the self
assessment method by self-employed individuals not
preparing audited financial statements (*).
We can estimate your income tax
and assist with the payment process.
Use our Calculator for an approxima-
tion of your income tax.
Copyright © 2020 Evidentrust Financial Services Ltd. All rights
reserved.
(*)
A physical person is obliged
to submit audited financial
statements if his/her annual
income from trade/business,
rents, dividends interest,
royalties or income relating
to trading goodwill exceeds
€70.000. Such physical per-
son should be paying his/her
2019 income tax by 1 August
2020 and submitting his/her
electronic tax return by 31
March 2021.
http://www.evidentrust.com/services/taxation-services/income-tax-calculation/https://www.evidentrust.com/services/taxation-services/incorporation-calculator/https://www.evidentrust.com/resources/social-insurance-and-other-funds/general-healthcare-system-contributions/https://www.evidentrust.com/resources/social-insurance-and-other-funds/http://www.evidentrust.com/services/taxation-services/provisional-tax-self-assessment/http://www.evidentrust.com/services/taxation-services/profit-extracting-form/http://www.evidentrust.com/resources/capital-gains-tax/capital-gains-tax-calculator/http://www.evidentrust.com/resources/capital-gains-tax/http://www.evidentrust.com/resources/capital-gains-tax/http://www.evidentrust.com/services/taxation-services/payroll-costs-calculator/https://www.evidentrust.com/resources/cyprus-tax-benefits-in-kind/https://www.evidentrust.com/services/taxation-services/benefit-in-kind-calculator-car-use/http://www.evidentrust.com/services/taxation-services/second-provisional-tax-self-assessments-form/http://www.evidentrust.com/resources/cyprus-provisional-tax-self-assessments/https://www.evidentrust.com/resources/deemed-dividend-distribution/deemed-dividend-distribution-calculator/https://www.evidentrust.com/resources/deemed-dividend-distribution/https://www.evidentrust.com/resources/deemed-dividend-distribution/http://www.evidentrust.com/resources/https://www.evidentrust.com/services/taxation-services/income-tax-calculation/
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Copyright © 2020 Evidentrust Financial Services Ltd. All rights
reserved.
Contact Details
E: [email protected]
T: +357 25327770
A: 232 Archiepiskopou Leontiou A’
Romantzo Court, Ground floor
Office 2, 3020 Limassol, Cyprus
W: www.evidentrust.com
P: P.O. Box 56851, 3310
Limassol, Cyprus
mailto:[email protected]://www.evidentrust.com
