Payment of one-off state grants to enterprises and self-employed workers

March 4, 2021 Uncategorized

As a follow-up to our briefings, please be aware of the payment of state grants to companies and self-employed persons subject to VAT, with a view to covering rents, installments, or other operating expenses which are expected to be completed at the beginning of March.   

All undertakings/self-employed persons subject to VAT, which fall under the ‘State grants Plan for Enterprises and Self-Employed Persons’, do not have to apply for such a grant.

It is recalled that the beneficiaries of the grant are:

– undertakings and self-employed persons subject to VAT, showing a decrease in their turnover in 2020 compared to 2019 of at least 35%, due to the restrictive measures taken to tackle the COVID-19 pandemic. For businesses and self-employed workers operating in the retail sector whose activity has been suspended or affected in January 2021, the comparison will be made with January 2020.

– New businesses and self-employed taxable persons, operating in 2020 and with a reduced turnover of at least 35%, compared to the corresponding average turnover of their economic activity in 2019.

It is noted that in the case of undertakings and self-employed workers active in the retail sector whose activity has been suspended or affected in January 2021 due to the restrictive measures taken to tackle the COVID-19 pandemic, the comparison of turnover will be made by January 2020.

The amount of state grant will be deposited directly into the bank account of each company, according to the data kept in the databases of the Department of Taxation.

For this purpose, those companies that have not previously notified the IBAN of their bank account to the Tax Department – for VAT purposes only –, please do so as soon as possible by completing and sending the T.D.1900 form

A photocopy of the credit institution’s certificate showing the name of the credit institution, the account holder/beneficiary and the international account number (IBAN) must also be submitted together with the form in the e-mail [email protected].

Objections to the amount of state sponsorship may be submitted to the e-mail [email protected]

LIST OF ECONOMIC ACTIVITIES NOT COVERED

FROM THE DRAFT OF THE STATE CHARGE

  1. Supermarkets and grocery stores (excluding Famagusta and Paphos provinces)
  2. Mines and Quarries
  3. Forestry and Logging
  4. Satellite and other telecommunications services
  5. Electricity generation
  6. Production of chemicals, products, metals and other non-metallic products
  7. Production of medicinal products and pharmaceuticals
  8. Manufacture of electrical equipment, machinery and electronic machinery for medical and therapeutic use
  9. Repair and installation of machinery and equipment
  10. Water supply, wastewater treatment, waste management and related
  11. Financial and insurance activities, including Licensed Banking Institutions and related activities
  12. Doctors
  13. Construction sector and related enterprises
  14. Wholesale related to the construction sector
  15. Wholesale trade in motor vehicles and motorcycles, as well as maintenance, manufacture and repair of motor vehicles and similar activities and related undertakings
  16. Trade representatives
  17. Wholesale trade in tobacco, perfumes and cosmetics, furniture, carpets, electronic & telecommunications equipment & accessories, electrical household appliances, radio & television, computers, regional computer equipment and software, porcelain articles, glassware and cleaning materials and related businesses.
  18. Non-specialised wholesale trade in food, drink and tobacco
  19. Programming, computer and related activities
  20. Hospital Activities
  21. Nursing homes
  22. Pharmacies (excluding famagusta and Paphos provinces)
  23. Trade in medical, orthopaedic and pharmaceutical products
  24. Lotteries and newspapers
  25. Land and water transport, storage, postal activities as well as transport-related and transport-support activities
  26. Private health companies and clinical laboratories
  27. Home assistance activities and household activities as employers of domestic staff
  28. Funeral home activities and related activities
  29. Veterinary Activities
  30. Head office activities, management advice and related activities
  31. Legal, accounting and architectural activities
  32. Fuel Sales Stations (excluding Famagusta and Paphos provinces)
  33. Services in relation to immovable property
  34.  Protection and research activities as well as services activities in buildings and outdoors (excluding famagusta and Paphos provinces)
  35. Rental and rental of personal or household items, machinery and equipment