The one-time state sponsorship announced by the Minister of Finance on Saturday will be deposited in the bank accounts of the beneficiary companies and self-employed persons who are registered in VAT, without submitting any application.
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The purpose of the sponsorship, as announced, is to cover rents, installments, or other operating expenses of businesses and self-employed. According to information from “F” from the Ministry of Finance, the information needed to provide the one-time sponsorship is already in the VAT register and thus the completion of applications will not be required for the support.
The payments, as a competent source told us, will begin with the adoption of the revised budget, with the aim of completing them as soon as possible.
As it was announced on Saturday, the amount of the subsidy that will be given, will be calculated with a special algorithm, based on specific parameters that were announced, with YPOIK giving to the public specific examples. Announcements are expected in the coming days for new examples, but the “algorithm” is not expected to be made public. The maximum amount of the subsidy is set at 300,000 and the minimum at 1,000 euros and the measure is expected to benefit around 30,000 companies. The total cost of the project is estimated at 200m euros.
It is noted that the beneficiaries of the one-time sponsorship are companies and self-employed persons subject to VAT, who show a decrease in their turnover by more than 35%, due to the restrictive measures taken to deal with the COVID-19 pandemic, compared to 2019. Further the company / self-employed person should not carry out any of the economic activities that will be announced with the announcement of the project, on the basis of which the sponsorships will be given within January. Beneficiaries are also new companies, which were established in 2020 and showed a reduced turnover of more than 35%, compared to the corresponding average turnover of their sector.
To pay the lump sum sponsorship, companies must meet the following criteria: Have their registered office or permanent establishment in Cyprus and be financially affected by the appearance and spread of COVID-19, have their VAT liabilities settled or regulated and have submitted their VAT tax returns for the month of August or September or October 2020. In addition, the beneficiaries will have the obligation to reopen their businesses within 2021.
