Cyprus – Measures to minimize the impact of COVID-19 on companies

As a result of the COVID-19 pandemic, the Cyprus Government announced, among others, a number of measures to help tackle the impact on Companies.

Below is a list of the measures which relate to Cyprus companies:

1. Extension of deadline for payment of 2020 annual levy (€350) payable by all Cyprus companies to 31 December 2020

2. Extension of deadline for submission of the 2018 income tax returns which were due on 31 March 2020 to 1 June 2020.

3. Extension of payment date of VAT arising on the VAT returns ending on 29 February 2020, 31 March 2020 and 30 April 2020 to the 10th of November 2020 (certain industries are exempt from this extension and will need to pay VAT on the normal deadlines). No interest or penalties will be levied on payments made up to the 10th of November, provided that the returns are submitted on time

4. The increased contributions to the General Healthcare System which were due to come into force as of 1 March 2020 will be suspended for a three month period.

5. The Company annual returns which need to be completed within the period 1/1/2020 to 31/12/2020 may be submitted to the Registrar of Companies until 28/1/2021 without the imposition of the €20 fee for late submission

6. Companies and individuals with performing loans are entitled to suspend the payment of loan installments for a period of 9 months (i.e. up to 31/12/2020)

7. The employees of companies which have suffered a decrease in turnover exceeding 25% (compared to 2019) and companies which have discontinued their activities as a result of the pandemic are entitled to a special type of unemployment benefit.

In addition to the above measures, various benefits, grants and special work leaves are available for companies and individuals who have been impacted by COVID-19.

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