Payment of one-off state grants to enterprises and self-employed workers
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
- Supermarkets and grocery stores (excluding Famagusta and Paphos provinces)
- Mines and Quarries
- Forestry and Logging
- Satellite and other telecommunications services
- Electricity generation
- Production of chemicals, products, metals and other non-metallic products
- Production of medicinal products and pharmaceuticals
- Manufacture of electrical equipment, machinery and electronic machinery for medical and therapeutic use
- Repair and installation of machinery and equipment
- Water supply, wastewater treatment, waste management and related
- Financial and insurance activities, including Licensed Banking Institutions and related activities
- Construction sector and related enterprises
- Wholesale related to the construction sector
- Wholesale trade in motor vehicles and motorcycles, as well as maintenance, manufacture and repair of motor vehicles and similar activities and related undertakings
- Trade representatives
- 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.
- Non-specialised wholesale trade in food, drink and tobacco
- Programming, computer and related activities
- Hospital Activities
- Nursing homes
- Pharmacies (excluding famagusta and Paphos provinces)
- Trade in medical, orthopaedic and pharmaceutical products
- Lotteries and newspapers
- Land and water transport, storage, postal activities as well as transport-related and transport-support activities
- Private health companies and clinical laboratories
- Home assistance activities and household activities as employers of domestic staff
- Funeral home activities and related activities
- Veterinary Activities
- Head office activities, management advice and related activities
- Legal, accounting and architectural activities
- Fuel Sales Stations (excluding Famagusta and Paphos provinces)
- Services in relation to immovable property
- Protection and research activities as well as services activities in buildings and outdoors (excluding famagusta and Paphos provinces)
- Rental and rental of personal or household items, machinery and equipment