Financial Benefits Cyprus
By Andreas Andreou, Multibusiness Ltd
During the Cyprus Lockdown nearly all businesses are facing the hardest of challenges, quite literally since records began. We are living in extraordinary times, and therefore you need to be aware of all the benefits that are available from the Cypriot Government which will help you through this period. Obviously, this situation will change as we go forward, but for now, here is the latest information on the government support available for your business.
The Council of Ministers has just approved a more targeted economic support package that includes three new schemes. More specifically, sponsorship is provided to very small businesses and those who employ up to 10 people as follows:
- Those that entirely suspended business until May 3 will receive €2,625 and after that date, €3,500.
- Partially suspended businesses until May 3 will get €1,875. Those in partial suspension after May 3 will receive €2,500.
- The self-employed who have not worked until May 3 will receive €1,125 and after that date €1,500.
It has also approved €1.5bn in state-backed loans: €300m for small businesses with up to 10 staff, €1bn for small and medium enterprises, and €200m for larger entities. Duration of the loans will be between three months and six years with favourable interest rates.
The Government also approved a bill affording tax breaks to property owners who cut rents to their tenants. They are giving a 50% tax break on the amount of reduction that should be between 30% and 50%.
These new measures are to be approved by Parliament and the European Commission. They are all designed to help and support businesses get through difficult times and to ensure their long-term survival. The Ministry of Labour, Welfare and Social Insurance announced six schemes for the period 13/04-12/05/2020.
6 BENEFIT SCHEMES FOR THE PERIOD 13/4 – 12/5 2020:
1. Complete Suspension of the Business
The first scheme is the Complete Suspension of the Business (legal or natural persons who are employers) who have completely suspended their operation or business, who are directly linked to the activities of a business that are in complete suspension of operations, and the turnover for the period 13/04-12/05/2020 is decreased more than 80% compared to the same period of the previous year.
2. Partial Suspension of the Business
The second scheme is the Partial Suspension of the Business. Any business may apply for that scheme if it partially suspended from work and the turnover for the period 13/04-12/05/2020 is decreased more than 25% compared from the same period of the previous year, and the decrease of turnover of the business is solely due to the situation of Covid-19.
3. Special Scheme for Self-Employed
The third scheme is the Special Scheme for Self-Employed who are subject to compulsory full suspension or whose activities are directly linked to the activities of a business that are in complete suspension of operations, i.e. the turnover for the period 13/04-12/05/2020 is decreased more than 80% compared to the same period of the previous year, or they have partially suspended their work, i.e. the turnover for the period 13/04-12/05/2020 is decreased more than 25% compared to the same period of the previous year.
4. Special Sick Leave Allowance
The fourth scheme is the Special Sick Leave Allowance. The Special Sick Leave Allowance is paid to persons on the list of vulnerable groups, persons infected with Covid-19 and have a Health Certificate, persons over the age of 63 who do not receive a statutory pension and persons with disabilities who work under the Employment Plans with Support.
5. Special Scheme of Child Care
The fifth scheme is the Special Scheme of Child Care. This scheme will be granted to private sector working parents who are responsible for the care of their child under 15 years old or child with disabilities and cannot work from home, telework or with flexible working hours.
6. Special Support Scheme for Unemployed
The sixth scheme is the Special Support Scheme for Unemployed who have received unemployment benefit and have exhausted the right of payment in February or March or April 2020.
For further information on any of these schemes, please contact your accountant or call Andreas and his team at MultiBusiness on 26 100 315.
Andreas Andreou is the Founder and Director of MultiBusiness Ltd, a leading chartered certified accountant in Paphos. He has built his client base through customer recommendations and now leads a team of twenty staff who have all been selected at the highest level for their qualifications and skills.