In accordance with the Circulars No. 48 and No. 49 issued by the Cyprus Tax Department in July 2021, it is now officially confirmed that the grants and other allowances provided to companies and the self-employed due to the Covid-19 pandemic are not taxable.
The specific allowances which were granted to cover rents and other operational expenses, are subject however to SDC and GeSY contributions.
As always, M. Target Group specialists remain at your disposal should you require any further information, clarification or professional assistance with any tax matter.