NOTIONAL INTEREST DEDUCTION
18/06/2020

NOTIONAL INTEREST DEDUCTION

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. 

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TAX SERVICES TEAM IS GETTING STRONGER
10/06/2020

TAX SERVICES TEAM IS GETTING STRONGER

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.

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.

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