Tag Archives: covid-19



30/12/2020

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.

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.