Tax measures for COVID19 announced for the financial support of the businesses in Cyprus.

SPL Audit would like to update businesses regarding the tax measures taken due to COVID-19 impact on Cyprus economy.

Tax returns and payment deadline extended.

On the 30th of March 2020 the Minister of Finance has announced that the submission date for Income Tax Returns for Companies (T.D.4) and Self Employed with accounts (T.D.1 Acc) for the year 2018 is extended until the 1st of June 2020.

Further, the Minister of Finance has announced the extension of the deadline for the payment of tax due under the aforementioned tax returns for 2018 until the same date.

Exemption from paying General Healthcare System contributions.

Under the Programme for Financial Support to counter the economic impact of the COVID-19 disease, the house of representative has approved on the 27th of March 2020 the exempt from payment of the increased GHS contribution for a period of 3 months. The rates apply as below.

Status1-31/3/20201/4/2020 – 30/6/20201/7/2020 Onwards
Employees2.65%1.70%2.65%
Employers2.90%1.85%2.90%
Self Employed4.00%2.55%4.00%
Pensioners2.65%1.70%2.65%
Individuals holding an office or employment2.65%1.70%2.65%
Any natural or legal person responsible for the payment of emoluments to any person holding and office or employment.2.90%1.85%2.90%
Income other than emoluments2.65%1.70%2.65%
Consolidated Fund of the Republic4.70%1.65%4.70%

In case businesses/employers have already proceeded with the implementation of the reduced rates for March 2020, the 3-month period applies from 1 March 2020 to 31st May 2020 for those businesses / employers only. If the reduced rates have not been applied for March 2020, the 3-month period applies from 1 April 2020 to 30 June 2020.

Please don’t hesitate to contact our advisors in case you have any queries.

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