«Charity Event One Dream, One Wish»

«Charity Event One Dream, One Wish»

in 2022, Events

In these difficult times we need each other more than ever. For the 8th consecutive year, we will co-organise with our associates, the “ Wish for the Stars” a charity evening to remember, that will include a musical with original score, performed by our staff, instructed, and directed by Niovi Spyridaki of Character Acting Studio by Niovi Spyridaki and choreographed and instructed by Eva Messi of Maria Messis Dance School.

All net proceeds will be donated to the Charity Organisation ”One Dream One Wish” for cancer-afflicted children.


Supporters: Studios 101 & Helena Brian Marketing & Advertising, Ariana Papadopoulou – Katrin Fashion School

Benefits in Kind – Social Security Contributions Treatment

Benefits in Kind – Social Security Contributions Treatment

in 2021, Social Incurance, Uncategorized

In reference to the treatment of the various benefits in kind that an employee may enjoy, the Ministry Labour, Welfare and Social Insurance have clarified the taxable treatment of the following scenarios.  

View detailed list here.

For any further clarifications please do not hesitate to contact our Head of Accounting Department, Mrs Despina Demosthenous at despo@ayca.com.cy.

Cyprus Headquartering – Government Action Plan

Cyprus Headquartering – Government Action Plan

in 2021, Investment, Uncategorized

Cyprus Headquartering – Government Action Plan

The Ministry of Finance has announced the following measures as part of the action plan to enhance Head Quartering in Cyprus, attract foreign investment and or enhance business activity in Cyprus.

  1. Extension of the tax deduction period benefit for those employees that were not Cypriot residents in a prior period of 17 years before their commencement of their employment to Cyprus
  • 50% tax deduction for those new residents/employees with a minimum annual salary of €55,000
    • The current beneficiaries with Salaries over €100Κ can extend their right from 10 to 17 years
    • The employees that have a Salary from €55Κ-€100Κ can benefit for a period of 17 years.
  • New policy for employment from 3rd countries

The companies that are:

  • operating in Cyprus and are of foreign interest/shareholding and maintain fully fledged offices
  • Cyprus Shipping companies
  • Cyprus Companies involved in innovation and technology
  • Cyprus pharmaceutical Companies or Companies that operate in the fields of biogenetics or biotechnology

Can recruit from 3rd countries if the following criteria are met:

  • Minimum monthly gross Salary €2500
  • The candidate must hold a university degree or equivalent, or has a minimum 2 years’ experience
  • Minimum 2 years contract
  • The Company can employee up to a max of 70% from 3rd countries (the limitation applies for a period of 5 years)
  • The work permits will be issued within one month period and will be valid for 3 years.
  • A work permit can also be granted to the spouse/husband of the eligible individual that obtains visa with this scheme.

Can recruit support staff from 3rd countries with a gross salary lower than €2500 as long as the following criteria are met:

  • The Company can employee up to a max of 70% from 3rd countries (the limitation applies for a period of 5 years)
  • The work permits will be issued within one month period and will be valid for 3 years.
  • DIGITAL NOMAD VISA (with a max number of 100)
  • Who can benefit?

Citizens of 3rd countries self-employed/freelancers or employees that are working remotely for employers/customers that are located outside Cyprus, for a 12-month period.

  • Residency status
  • Have the right to stay in the country for a year with option to renew for another 2 more years.
  • Their family has the right to stay in Cyprus but not the permit to work.
  • If they stay in Cyprus for more than 183 days and are not tax residents of any other country will be considered as tax residents of Cyprus.
  • Prerequisites:

The visa is provided if the following requirements are met:

  • A written declaration is filed that confirms that their services/work is not provided to a local Cyprus Company
  • There is a signed contract of employment and or engagement letter with an overseas Company or physical person or any other proof of work for the duration of the period that the visa is granted
  • The applicant can prove that he or she will have a minimum monthly income of EUR3.500. The amount is increased by 20% in case they have a wife/husband/partner and another 10% per child
  • They have a medical insurance and a clean criminal record
  • A 50% tax deduction on investments to innovative Companies both by a Cypriot Tax resident physical person or Company
  • A 120% capital allowance on expenses that relate to R&D
  • Citizenships

An employee that completes 5 years of residency and employment in Cyprus or 4 years and carry a certification of Greek language, can apply for a citizenship.

Ergani – Register as an employer in Cyprus

Ergani – Register as an employer in Cyprus

in 2021, Social Incurance

Amendments to the Social Securities Law (167/2017) affecting Employers in Cyprus are applicable from 13 September 2021.

  1. Application to register as an Employer in Cyprus, must be filed at east 1 day before it/he/she becomes an Employer.
  2. Each Employer must notify the Department of Social Securities for any new recruitments, at least one day prior to his/her employment.
  3. Each Employer must maintain an Employees register that records in recruitment date order the personal details of each employee (Numerical sequence number, Full name, ID number, Social Securities number, employment date, employment commencement date)
  4. Declarations for the commencement of employment confirmation will not be issued as from 13/9/2021.
  5. Employers in Cyprus, as from 14/9/2021, should process all notifications through online portal “ERGANI’ https://ergani.mlsi.gov.cy.

For all employments prior to 14/9/2021, employers can instead use the current system, “SISNET”.

For any assistance and further clarifications please contact us.

EU e-commerce VAT rules

EU e-commerce VAT rules

in 2021, VAT

Changes to the EU e-commerce VAT rules concerning Business to customers (B2C) will take effect as from 1 July 2021.

Below mentioned changes, will align with EU e-commerce VAT rules and are expected to be approved by newly formed parliament.

As a result, from 1 July 2021 there will be two types of distance sales of goods:

  • intra-community distance sales. Business to consumer (B2C) Sales of goods dispatched from EU Member State to a customer in another EU Member State
    • distance sales of goods imported from third (non-EU) countries. These are B2C sales of goods from a third country to a customer in an EU Member State

For intra-community distance (B2C) Sales

  • A new EU-wide turnover threshold of EUR 10 000, irrespective of the VAT registration thresholds per country, will replace the existing thresholds for distance sales of goods within the EU.
  • VAT to be charged will be that of the country of residence of the customer.
  • Existing Union scheme of the Mini One Stop Shop (MOSS) will be extended to cover both cross-border supplies of goods and services under the new portal, the One Stop Shop (OSS). Suppliers can declare and pay VAT due in all other Member States through the portal of their Member State of establishment. Otherwise, suppliers would have to register in each Member State where they make B2C distance sales.

For distance sales of goods imported from third (non-EU) countries

  • VAT small item exemption of EUR 22 will be removed meaning all goods imported into EU from third countries will now be subject to VAT. As a result, customer will collect by the national postal service or a courier service.

To ease the process, the European Commission has introduced two optional systems:

  • the Import one stop shop (IOSS) that allows businesses to collect the VAT at the time of the order and to declare and pay the VAT on these distance sales of imported goods for the whole EU in a single VAT return.
  • the special arrangements that allow post and couriers to declare and pay the collected VAT on a monthly basis.

New Rules for Online Sales Platforms / Electronic Interfaces

Online platforms that are “deemed suppliers” will be responsible (jointly and severably with the actual supplier of the goods) for reporting and paying VAT on sales made by suppliers that use the platforms.

Platforms facilitating supplies of goods become “deemed suppliers” when facilitating the distance sales of imported goods made by a seller and the goods are:

  • distance sales of goods imported to EU with a value not exceeding EUR 150 and not subject to excise duties; and/or
  • supplies of goods to customers in the EU, irrespective of their value, when the underlying supplier/seller is not established in the EU (both domestic supplies and distance sales within the EU are covered).

The OSS/IOSS online portals are also available to online platforms / electronic interfaces facilitating these distance sales of goods. Again, if the electronic interface is established outside the EU, they will normally need to appoint an EU-established intermediary to fulfil their VAT obligations under the IOSS.


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