The World Health Organization (WHO) has declared the Covid-19 outbreak to be a pandemic and since then our daily lives have changed. In Cyprus, the Government has announced several measures in order to support the economy of the country. These measures include:
TAX
- Extension of the submission deadline of income tax returns for two months i.e. the new deadline TD. 4 (Corporate Tax Returns) and TD. 1 (Personal Income Tax) for 2018 is now 31 May 2020.
- Suspension of the rise in the General Health System (GESY) contributions by the employer and the employee for two months.
- There will be special arrangements for the taxpayers who have been included in the scheme regarding the settlement of overdue taxes
VAT
- Reduction in the Standard VAT rate from 19% to 17% for two months
- Reduction in the Reduced VAT rate from 9% to 7% for 3,5 months
- Suspension of the obligation for the VAT payment without any penalties for two months. This applies for:
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- Businesses with turnover less than €1 million based on the VAT returns during 2019
- Businesses whose turnover has been reduced by more than 25%