Support Measures Announced by the Cyprus Government in Response to Covid 19

In light of the recent outbreak of Coronavirus (COVID-19) in Cyprus, the government, further to taking all necessary measures to contain the spread of the virus (132 confirmed cases as of 26 March 2020)*; announced a number of further measures to support the country’s economy and introduced a €700 million budget to support the viability of businesses during this critical period.

 

Key direct tax, VAT and other measures include the following:

 

 1.      Indirect Taxation (VAT)

 

 2.      Direct Taxation

 

 3.      General Healthcare System (GESY)

Non-payment of the additional contribution for a period of two months. The suspension applies for the period from April 1st to May 31st.

 

 4.      Other business measures

A Support Plan for Small Businesses, amounting to €10 million, for businesses employing up to 5 people, under the condition that they keep employing their employees and have suffered a loss bigger than 25% of their turnover. The Plan foresees a subsidy of 70% of the workers’ salary.

 

 5.      Banking Sector

 

 6.      Companies Sector

The Registrar of Companies has implemented the following measures in support of companies incorporated and existing in Cyprus:

 

*Prohibitions and Measures currently in Place

On March 15, the government of the Republic of Cyprus determined that the country is facing a state of emergency and implemented measures to address the continued outbreak of COVID-19. Some of the prevention and protection measures currently in force are outlined below:

 

Royal Pine and Associates Limited is in constant monitoring of the effects of COVID-19 and will issue further announcements if necessary. Our team can further assist you in case you need any clarifications or advice on how the above measures may affect you or your interests.

 

 

The authors of the article are Anastasia Sarkisian and Maria Vira.

Anastasia is a legal consultant at Royal Pine & Associates. She is qualified lawyer with experience in the corporate field and admitted member at the Cyprus Bar Association.

Maria is the Head of Financial Services at Royal Pine & Associates. She is a qualified accountant with eight years solid experience in the corporate industry. Maria is an extremely dedicated, innovative and talented accounting professional.

 

 

* This publication has been prepared as a general guide and for information purposes only. It does not purport to be comprehensive or to render legal advice. 

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