As part of government decisions to support workers and businesses due to the financial consequences of the pandemic, the gradual payment of state sponsorship to companies and self-employed persons subject to VAT began on Monday, in order to cover rents, installments or other operating expenses with According to the Plan announced by the Ministry of Finance, the Director of the Press Office of the President of the Republic, Viktoras Papadopoulos, states in a written statement.
According to Mr. Papadopoulos, a start was made with 5000 payments, concerning the hotel sector, the companies operating within shopping malls, as well as companies / self-employed operating in the Provinces of Paphos and Famagusta, while the rest will gradually follow, the which are expected to be completed by the end of March.
The total number of beneficiaries is about 30.000, he added.
Mr. Papadopoulos pointed out that all companies / self-employed persons subject to VAT, which fall under the "Scheme of State Sponsorship of Businesses and Self-Employed Employees", do not need to apply for this sponsorship. The amount of the state sponsorship will be deposited directly in the bank account of each company, according to the data kept in the databases of the Tax Department.
It is reminded that the beneficiaries of the sponsorship are:
Businesses and self-employed persons subject to VAT, who show a decrease in their turnover in 2020 compared to 2019, at least 35%, due to the restrictive measures taken to deal with the pandemic COVID-19. For companies and self-employed persons active in the field of Retail Trade, whose activity has been suspended or affected in January 2021, the comparison will be made with January 2020.
New businesses and self-employed persons subject to VAT, which were active in 2020 and showed a reduced turnover of at least 35%, compared to the corresponding average turnover of their sector of economic activity in 2019.
It is noted that with regard to companies and self-employed persons active in the field of Retail Trade, whose activity has been suspended or affected in January 2021, due to the restrictive measures taken to deal with the pandemic of COVID-19, the comparison of turnover will be made with January 2020.
Also, Mr. Papadopoulos stated that the process of accepting applications from companies and self-employed persons active in the field of Tutoring, Dance Schools and Conservatories, which are exempted from the obligation to register in the VAT Register, is underway.
Source: KYPE