CHANGE OF TAX PERIOD AND CALCULATION OF VAT PAYABLE
17/04/2020

CHANGE OF TAX PERIOD AND CALCULATION OF VAT PAYABLE

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
1/4/2020-30/4/202027/5/2020
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.

TABLE 1

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

COVID-19 FINANCIAL SUPPORT UPDATE
30/03/2020

COVID-19 FINANCIAL SUPPORT UPDATE

in 2020, Updates

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

COMPANIES

  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 www.coronavirus.mlsi.gov.cy.
  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 info@ayca.com.cy.

SELF-EMPLOYED

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 www.coronavirus.mlsi.gov.cy.

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.

VAT

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.





Tax Update – December 2019
12/12/2019

Tax Update – December 2019

in Uncategorized

We would like to inform you of the below important changes in relation to Social Security and National Health System (GESY) contributions and the personal income Tax:

Social Security contributions

As from 1st January 2020 the monthly maximum insurable gross salary in respect the Social Security contributions will increase to €4.572

GESY-National Health System

As from 1st March 2020 the GESY-National Health System will increase to:

Categories March 2020
Employees 2,65%
Pensioners 2,65%
Other Income e.g. interest, dividends, rental income 2,65%
Directors 2,65%
Self Employed 4,00%
Employers 2,90%

The maximum taxable amount per individual remains at €180.000

Personal Income Tax

The House of Parliament, on the 6th of December 2019, approved an increase in the percentage of maximum allowable tax deductions in relation to life insurance, medical insurance, social security, pension fund, and provident fund contributions from 1/6 of gross income that was applicable up to 31 December 2018 to 1/5 of gross income.

The above is applicable from the 1st January 2019 (tax year 2019) onwards.

Cyprus implements the legislation of the EU Anti-Tax Avoidance Directive
16/05/2019

Cyprus implements the legislation of the EU Anti-Tax Avoidance Directive

in 2019, 2019, Law, Tax

Introduction

On the 5th of April 2019, the House of Representatives approved the proposed legislation (the Law) implementing the provisions of the European Union Anti-Tax Avoidance Directive (ATAD or Directive). The new Law will come into force once it is published in the Official Gazette of the Republic. The provisions of the Law shall be effective as of 1 January 2019 (i.e. from the tax year 2019 onwards).

The Law introduces the below:

  • Interest limitation rules
  • CFC rules
  • General Anti-abuse rule (GAAR).

The second phase of the implementation of the Directive concerning the exit taxation provisions and the Hybrid mismatch rules will be effective as of 1 January 2020.

The first implementation of the ATAD Law impacts only Cyprus Corporate Income Tax payers and more specifically Cyprus Tax Resident Companies and Cyprus Permanent Establishments (PEs) of non-Cyprus Tax Resident Companies.

For more information, please click here.

IFRS 9 – Financial Instruments
22/02/2019

IFRS 9 – Financial Instruments

in Audit

IFRS 9 despite the wide perception actually affects not only financial institutions but much more organizations. This is the case especially when an entity has long-term loans, equity instruments or any other financial assets. Even entities with short-term receivables are also affected.

IFRS 9 can affect entities in different ways such as:

  • It increases the volatility of the presentation of the income statement. More assets than before would have to be measured at fair value with any increase or decrease in their fair value to be recognized instantly as they appear in profit and loss.
  • Entities will now have to provide for any possible future credit losses on their receivables (including trade receivables) and loans. This provision shall take place even when a receivable (e.g. loan) is recognised for the first time in the entity’s financial statements; even if the possibility of future credit loss is highly unlikely.
  • IFRS 9 also introduces new disclosure requirements that some entities will have to adopt in order to process the required data needed to be disclosed.

You can find the most significant changes introduced by IFRS 9 by clicking here.

In case you need any further clarifications or assistance on how to adopt your company to IFRS 9, please contact us at: T: +357 25443132
F: +357 25878948
E: info@ayca.com.cy
W: www.ayca.com.cy

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