Special economic support measures announced by the Cyprus Government due to the coronavirus.
Special economic support measures announced by the Cyprus Government due to the coronavirus.
Updated: 18/03/2020
This is summary of the financial measures anounced by the government last Sunday 15/03/2020.
Special Leave
Granting of “Special Leave” to parents working in the private sector for the care of children due to suspension of attendance at public and private schools, nursery and childcare centres will not exceed €1,200. The “special leave” will be granted to one of the two parents and can last up to 4 weeks. For a parent with a salary of up to €2.500, a 60% allowance will be paid for the first €1.000, and for the next €1.000 of his/her salary, a 40% allowance will be paid.
Calculation:
• If the monthly salary = €1,000 amount of the allowance received will be €600.
• If the monthly salary = €1,200 amount of the allowance received will be €680.
• If the monthly salary = €1,500 amount of the allowance received will be €800.
• If the monthly salary = €1,800 amount of the allowance received will be €920.
• If the monthly salary = €2,000 amount of the allowance received will be €1,000.
• If monthly salary = €2,200 amount of the allowance received will be €1,080
• If the monthly salary = €2,500 amount of the allowance received will be €1,200.
General Healthcare System
• General Health Scheme which was scheduled to start on the 31st March 2020 by employers, employees and the State, will be postponed for two months. At this point the timeline of the second phase of the GESY implementation will not be affected.
Tax statements
• Tax statements can be submitted until the end of May 2020 instead of end of March.
VAT
• Temporary suspension of VAT payments concerning companies whose turnover was less than 1 million euro, according to the tax declarations submitted in 2019 and businesses whose turnover dropped by more than 25%, without imposing any charges.
• Arrangements for the VAT to be gradually paid off until the 11th November 2020.
• Temporary reduction of VAT from 19% to 17% over a two-month period and from 9% to 7% over a three-and-a-half-month period immediately after the relevant legislation is adopted to strengthen the purchasing power of the citizens
Overseas Students
• €750 will be given to those who will remain in the country of their studies
Banking Sector
• European Central Bank has already considered measures for the support of bank lending among with the Cyprus Central Bank. Cypriot financial institutions will be able to obtain liquidity from the Eurosystem on favourable terms. This measure concerns the release of capital stocks which is estimates at €1.3 billion.
Business Support Plan
• For small businesses that employ up to 5 people, provided that they retain their employees at work and their turnover has been reduced by more than 25%. It provided a subsidy of 70% of employee salaries.
Conclusion
Terms and conditions about these measures will be given in detail in the following days.