Category: Updates


COVID 19 – Business lessons learned

in 2020, Updates

The unprecedented impact of the COVID-19 pandemic, in our social and business life, leads to the society and businesses to revaluate and undertake critical decisions in attitudes and practices that will remain well past the pandemic. 

Working from home not only kept many businesses afloat but it has proven to management that in most cases the employees are capable to function and be as productive as working from the office. There were some additional costs, especially in investing in higher secured connectivity, but in the longer run they can pursue to high cost reductions in office space and cost of travelling as well as a widened talent pool for the Companies recruitment needs.

Risk analysis and contingency plans for most companies were unknown words. The coronavirus provided a big lesson of how important is for any Company to closely monitor its Operating environment, regularly review its business model, perform stress tests and implement contingency plans in all operational aspects.

The importance of technology has been emphasized more than ever. Companies adopted and implemented cloud-based communications, video conferencing and other productive tools. Simultaneously we saw the Government Authorities adopting to the new era by digitalising the processes of the Tax Authorities, the Registrar of Companies, the Shipping industry and many other sectors. It is more than evident that Companies must closely monitor the technological changes in their operating environment and be prepared to substantially invest in them to stay in the game.

The well-being of the staff has been set, and correctly so, as a top priority for the Companies. Health and Safety provisions are playing a vital role in the health of the employees and the business continuation. Companies must extend their interest for the well-being of their employees not just at work but also taking into consideration the current conditions and address the essential nature of social interaction. Firms must establish ways, by staff rotation between office and home, as well as fun activities via video conferencing to support the moral and enhance the team building.

So, are your reconsidering your place of stay, somewhere that you could enjoy very low taxes and a great Mediterranean lifestyle? Well as they say, location, location, location. Cyprus has proven that not only is a beautiful country to live but also a safe one. We have proven to be quick to respond, agile and well organised both at the private and public sector level and although is not yet over we can safely say that the situation is very well managed with as less casualties as possible. Being an island enabled the close monitoring of the inbound population whereas the sunny weather (2nd best climate in the world) and the proximity to the nature whether that is swimming or hiking played an important role in controlling the pandemic and maintaining our physical and mental health. It is evident that the world has changed. I would love to welcome you to your new home.



in 2020, Law, Updates

The Notional Interest Deduction (NID) with retrospective effect as from 1st January 2020 rules have been amended by the Cyprus Income Tax (Amending) Law 66(I)/2020.

The new Law provisions that the NID Reference Rate is defined as the interest rate of the 10 year government bond yield of the country in which the new equity is invested (as published annually) increased by 5% instead of 3% that was applicable in prior years. 

Read more



in 2020, Tax, Updates

We are proud to announce that Yiallourides & Partners LTD has established an association with TPAC LTD a company specialising in transfer pricing studies (TPS), with Mr. Panikos N. Tsiailis FCCA as the managing director. TPAC will be working in close cooperation with our tax team.

To read the full announcement, please click here.



in 2020, Updates, VAT

The following must be applied ONLY by those Companies that have been notified by the Authorities through TAXISnet.

Change of Tax period

The next tax period ends on 31st March 2020 and then after every calendar month until 30th June 2020.

The filling day of the VAT Return will be the 27th day following the end of each period. In that respect the filling dates change as follows:

Normal tax periodNew tax periodDeadline for filing and payment of VAT for the tax period up to 31/3/2020
1/1/2020- 31/3/20201/1/2020- 31/3/202027/4/2020
1/2/2020- 30/4/20201/2/2020- 31/3/202027/4/2020
1/3/2020- 31/5/20201/3/2020- 31/3/202027/4/2020

Then after and starting as from 1/4/2020:

New Tax periodFinal date for T.R. submission and payment of tax payable
1/5/2020- 31/5/202027/6/2020
1/6/2020- 30/6/202027/7/2020

Calculation of tax payable

  • For those Companies that are included in Table 1 here below the VAT amount payable must be in full – 100%
  • For any other Company, VAT payable 30% of the amount due up to that period taking into consideration the balance due from previous periods.
Payment date  27/4/202027/5/202027/6/202027/7/2020
 Calculation of tax payable30% of the VAT due for the period up to 31/03/202030% of the VAT due for the period up to 30/4/2020   plus 30% of the VAT due for the period up to 31/03/202030% of the VAT due for the period up to 31/5/2020   plus 30% of the VAT due for the period up to 30/04/2020 and 31/03/202030% of  the VAT due for the period up to 30/6/2020 plus 30% of the VAT due for the period up to 31/05/2020, 30/04/2020 and 31/03/2020

The balance due must be settled by November 10th 2020.


35111 Electrical power supply
36001 Collection and distribution of water
47111 Supermarkets
47112 Mini – markets
47211 Retail sales of fruits and vegetables
47221 Retail sales of meat and poultry
47241 Bakeries
47242 Patisseries
47301 Petrol stations
47411 Computer hardware, software and video games retailers
47621 Office supplies reatilers and newspaper distributors
61101 CYTA
61201 Internet providers
61301 Satellite communications
61901 Other telecommunication companies



in 2020, Updates

The Parliament of the Republic of Cyprus approved on 27th March 2020 the following:


  1. For the Companies that were instructed by the decision of Board of Ministers and or the orders of the Ministry of Health are allowed to claim a special unemployment funding that can cover up to 90% of their employees and will equal up to 60% of their gross Salary. The remaining 10% that refers to the general directors, directors, shareholders and high-ranking Managers cannot make such claim, exempt in those cases that the Companies employees less than 10 employees. The applications can be made electronically at
  2. For all other Companies that have suffered a 25% reduction of their Turnover can apply special unemployment funding of up to 75% of their staff if the number of employees is less than 50 and 60% for all other Companies.

The above schemes cover the period 16th March 2020 to 12th April 2020.

For further assistance and special terms that are applicable please contact us at


In relation to the period 16th March 2020 to 12th April 2020 self-employed that were financially affected by the COVID-19 measures, can make a claim equal to 55% of their insurable emoluments with a maximum amount of EUR800.

Special Leave Allowance

For those parents that have children up to the age of 15 years old and have a Salary that does not exceed EUR2.500 or are included in the List of the Ministry of Health as high risk, or are under quarantine, or are in between the ages of 63 and 65, can follow the explanations and applications provided on

GESY contributions

The planned increase on GeSY contributions scheduled for 31/3/2020 will apply for March 2020 emoluments and then suspended for 3 months, i.e. April, May and June 2020 that the existing GeSy rates will apply.


The filing of the VAT Returns for the periods ending February or March or April 2020 must be on time as per the current deadlines but you can arrange with the VAT Authorities an extension of the payment of VAT up to 10th November 2020. This does not apply for Companies that had no cash flow impact such as pharmacies, supermarkets etc.

VAT rates will remain the same.

TAX Returns

Extension of the filing deadline from 31ST March 2020 to 31st May 2020 for Companies and self-employed.

Annual Levy Extension of deadline for the payment to 31st December 2020.