Corona virus – tax and VAT measures

As a result of the disruption caused by Corona Virus disease, the Cyprus government has taken taxation and VAT measures in order to support the local economy. These are as follows:

Taxation

1. The new submission deadline for the 2018 corporate income tax returns and personal income tax returns of individuals preparing audited financial statements is now 31 May 2020 from 31 March 2020.
2. The increase in the contributions to the General Healthcare System by employers, employees and the State are postponed for the months of April, May and June 2020.

VAT

1. Temporary suspension of the obligation for payment of the VAT liability without imposition of penalties as a measure to enhance liquidity for businesses. It covers the three-monthly periods to 29 February 2020, 31 March 2020 and 30 April 2020. This measure applies to:
      
   •    Businesses with turnover not exceeding €1 million based on the turnover of the VAT returns that were submitted during 2019
   •    Businesses whose turnover has been reduced by more than 25%.
2. The VAT liability to be paid gradually until 11 November 2020 on the assumption that the VAT returns were submitted on time.