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  • Newsletter June 17th - Cyprus - New Support Measures for Businesses and Workers

Newsletter June 17th - Cyprus - New Support Measures for Businesses and Workers

Angelos Petrou , Senior Manager Tax Department |

01 July 2020

Four new schemes have been announced by the government for businesses that need support due to the Covid-19 pandemic

New Measures to support Businesses and workers

Four new schemes have been announced by the government for businesses that need support due to the Covid-19 pandemic:

1. Special Plan for Hotel Units and Tourist Accommodation

2. Special Plan for Economic Activities related/affected by the Tourism Industry and Tourism Activities

3. Special Plan for Enterprises of Certain Economic Activities

4. Special Plan for the Complete Suspension of the operations of a Company

An enterprise may qualify only under one of the above schemes. The benefit is paid to the enterprise.

The main conditions for eligibility are:

  • significant reduction in turnover in enterprises
  • Not to have made or make any employee redundant in the period from 1 March 2020 to 31 October 2020.
  • To satisfy various obligations/conditions specified by the relevant scheme
  • The percentage reduction in turnover must be confirmed by a certified public accountant

A brief analysis of each scheme follows:

  1. Special Plan for Hotel Units and Tourist Accommodation

 

Period

Percentage fall in turnover

Percentage of Employees covered in respect of those businesses that will re-open

Percentage of Employees covered in respect of businesses that will remain closed during the period

Percentage of Salary subsidised

13/6 – 30/6/20

Over 40%

90%

80%

60%

1/7 – 31/7/20

Over 40%

90%

80%

60%

1/8 – 31/8/20

Over 35%

50%

80% but may be revised downwards

60%

1/9 – 12/10/20

Over 35%

50%

80% but may be revised downwards

 

60%

 

Applicants that are re-opening are obliged to make attractive offers for local tourists and these should be made in cooperation with the Ministry of Tourism.

 

 

 

 

Period

Percentage of reduction of business turnover

Number of employees

Percentage of Employees covered in respect of those businesses that will re-open

Percentage of Employees covered in respect of businesses that will remain closed during the period

Percentage of Salary subsidised

13/6 – 30/6/20

Over 55%

Up to 3

100%

80%

60%

Over 3

60%

1/7 – 31/7/20

Over 55%

Up to 3

100%

80%

60%

Over 3

60%

1/8 – 31/8/20

Over 40%

Up to 3

100%

80%

60%

Over 3

45%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2. Special Plan for Economic Activities related to/affected by the Tourism Industry

 

The Plan is directed at any undertaking which:

(a) is linked to the tourism industry or

(b) is engaged in an economic activity directly affected by Tourism or

(c) is engaged in an economic activity linked to a business which is subject to compulsory complete suspension in accordance with the most recent Decrees of the Ministry of Health and/or the relevant Decisions of the Council of Ministers.  

(d) the enterprises businesses must fall under one of the categories specified in Annex 1 of the Circular.

 

3. Special Plan for Enterprises of Certain Economic Activities

The Plan referred to is addressed to any undertaking which does not carry out economic activities specified in Annex I (reproduced below).

Period

Percentage of reduction of business turnover

Number of employees

Percentage of Employees covered

Percentage of Salary subsidised

13/6 – 30/6/20

Over 40%

Up to 3

100%

60%

Over 3

45%

1/7 – 31/7/20

Over 40%

Up to 3

100%

60%

Over 3

45%

1/8 – 31/8/20

Over 35%

Up to 3

100%

60%

Over 3

40%

 

Annex I

1.Supermarkets

2.Satellite and other telecommunications services

3.Electricity generation

4. Credit and insurance activities, including Licensed Banking Institutions

5. Doctors 

6.Hospitals

7.Nursing homes

8.Production of pharmaceuticals

9.Wholesale of pharmaceutical products

10. Pharmacies

11. Medical and orthopaedic supplies

12. Bakeries and producers of pastry

13. Retailers (including the sale of cars and other vehicles)

14. Wholesale of electrical appliances, clothing and footwear, perfumes and cosmetics, carpets, furniture and luminaires and other household goods

15. Fuel stations

16. Vehicle maintenance and repair (including the sale of parts)

17. The Construction industry

18. Related to the construction industry including wholesale suppliers of construction materials etc.

19.Construction of projects, roads, bridges and other construction activities

20. Manufacture and supply of equipment for houses, offices, factories and the like

21. Veterinary services

22. Education (excluding supplementary tuition, Dance Schools and the like)

23. Hairdressers / Barbershops / Beauticians and Other Personal Services

24. Legal, Accounting and Consulting Services and other similar services

25. Sports teams and other similar activities

26. Business societies, Employer, Professional, Trade Unions, Religious Organizations and related activities

27. Agents

28. Funeral services

29. Laundry activities of all kinds

30. Primary sector

31. Flower shops excluding nurseries

32. Software programs and related activities (including wholesale trade)

33. Games of chance and betting

34. Services in relation to immovable property

35.  Cleaning activities.

 

 

4. Special Plan for the Complete Suspension of the operations of a Company

The Plan is directed at any company subject to mandatory full suspension, in accordance with the most recent Decrees of the Minister of Health and the relevant Decisions of the Council of Ministers. 

Period

Number of employees

Percentage of employees covered

Percentage of Salary subsidised

13/6 – 30/6/20

 

Up to 9

 

100%

 

60%

1/7 – 31/7/20

1/8 – 31/8/20

13/6 – 30/6/20

 

Over 9

 

90%

 

60%

1/7 – 31/7/20

1/8 – 31/8/20