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Nicosia – The Cyprus government declared yesterday a state of emergency due to the coronavirus (Covid-19) pandemic and essentially locked down the country. In a press conference following day-long meetings at the Presidential Palace, Cyprus President, Nicos Anastasiades, stressed the times are critical and that the island is experiencing a state of emergency. “What is needed, and I would like to stress this once again, is a sense of responsibility and social solidarity on the part of each and every one individually to deal with the critical situation we are facing,” he said. He, and his Ministers of Health, Finance and Labour, went on to announce a series of hard- hitting measures, aiming at combatting the virus. Only Cypriots will be allowed into the country provided they produce a medical clearance, and those who do arrive in, will be placed in a compulsory quarantine for two weeks. Operations of many private businesses are suspended, including department stores, nightclubs, hotels and malls and a €700m stimulus package, which includes a reduction in VAT from 19% to 17% for two months, was announced to assist the economy. Other private businesses are allowed to continue operating, for the time being. Civil servants will work from home wherever possible while non-vital services will operate with skeleton staff. Specifically: Between 6pm on 16/3/2020 and 30/4/2020, entry to the Republic of Cyprus will only be granted to individuals who fall under the categories listed below, provided that, upon arrival, they are able to submit a medical certificate, issued no more than 4 days before, showing that they have been tested for coronavirus by certified medical centers in their country of origin: Cypriot citizens. Legal residents in the Republic of Cyprus. European nationals or third-country nationals working in the Republic. Nationals of countries who are in a designated diplomatic service or mission under bilateral or international Conventions. European or third country nationals attending educational institutions in the Republic of Cyprus. Individual cases of European nationals or third-country nationals for unavoidable professional obligations, provided that the relevant permit has been obtained from the competent Ministry. All travellers returning to Cyprus from abroad, regardless of their country of origin, will be placed under a 14-day compulsory quarantine at accommodation facilities designated by the government. Cypriot students who choose to remain overseas for the Easter holidays will be subsidised by the state with €750. Many private businesses that serve consumers, such as cafes, will be closed as of today and for four weeks. The decision covers malls, department stores, cinemas, theatres, libraries, museums, archaeological sites, betting shops, casinos, sports venues and clubs, theme parks, barbershops and hairdresser salons, beauty parlours, cafes, bars, and all food and beverage businesses excluding those that only do delivery and take away. Supermarkets, pharmacies, private health services, bakeries, kiosks, and petrol stations will remain open under certain conditions. Other private business, such as law and accounting firms, will remain open for the time being, “as long as they follow strict hygiene measures for the protection…

Nicosia - The number of unemployed persons in the 4th quarter of 2019 amounted to 6,3% of the labour force or 28.481 persons, according to data released by the Cyprus Statistical Service late last month. This compares favourably to an unemployment rate of 7,6%, or 33.383 in the corresponding quarter of 2018. For the whole of 2019, the unemployment rate was 7,1% in comparison to 8,4% in 2018 and over 16,5% in the 2nd half of 2013. According to the Cyprus Statistical Service, the labour force in the 4th quarter of 2019 amounted to 449.784 persons, or 62,9% of the population (males 68,8%, females 57,6%) in comparison to 440.765 persons (62,5%) in the corresponding quarter of 2018. The number of employed persons was 421.303 and the employment rate 59,0% (males 64,8%, females 53,5%) in comparison to 407.382 persons (57,8%) in the corresponding quarter of 2018. Employment For the age group 20-64, the employment rate was 76,0%. The rate for males was 81,7% and for females 70,7%. In the corresponding quarter of 2018 the rate was 74,5% (males 80,2%, females 69,3%). For the age group 55-64 the employment rate was 61,4% in comparison to 61,1% in the corresponding quarter of 2018. According to the distribution of employment by sector, the biggest percentage of employed persons was in Services (78,4%), followed by Manufacturing (18,9%) and Agriculture (2,7%). For the 4th quarter of 2018, the corresponding percentages were: Services 80,8%, Manufacturing 17,1% and Agriculture 2,1%. The share of part-time employment to total employment was 11,1% or 46.610 persons (males 7,3%, females 15,3%). The corresponding rate for the 4th quarter of 2018 was 11,2% (males 8,1%, females 14,6%). 86,5% or 364.233 of the total employed persons were employees, of which 14,1% (51.164 persons) had a temporary job. In the corresponding quarter of 2018 employees accounted for 86,7% of total employment of which 12,5% had a temporary job. Unemployment For young persons aged 15-24 years old, the unemployment rate was 16,0% of the labour force of the same age group (males 15,9%, females 16,0%) in comparison to 20,6% (males 25,7%, females 16,0%) in the corresponding quarter of last year. As far as the duration of unemployment is concerned, 50,4% of the total unemployed persons searched for a job for a period of less than 6 months, 19,2% for a period of 6-11 months, whereas a percentage of 30,4% were long-term unemployed. The corresponding rates for the 4th quarter of 2018 were 53,7%, 14,2% and 32,1%.

Brussels - British overseas territory the Cayman Islands has been placed on an EU tax-haven blacklist, along with Palau, Panama, and the Seychelles. The latest decision made by the EU Finance Ministers on Tuesday, 18 February 2020, follows the UK's departure last month from the European Union. The Ministers said it was listed because investment funds based there do not reflect real economic activity. The four black-listed countries join Oman, Fiji and Vanuatu, which have also been accused of failing to crack down on tax abuse. The EU said the Cayman Islands, which has no income tax, capital gains tax or corporation tax, does not have "appropriate measures" in place to prevent tax abuse, allowing firms to register there, despite having minimal presence in the territory. The jurisdiction was previously on a ''grey list'' that gave it time to introduce new laws to tackle tax deficiencies. But it did not implement the "economic substance" reforms by the deadline as promised, the EU said. Cayman Islands' Premier, Alden McLaughlin, said the government has approved many reforms sought by the EU and has already contacted the EU about the process of being removed from the blacklist. The Cayman Islands is the first UK territory to be added to the EU blacklist. Blacklisted countries face difficulties accessing EU funding programmes, while European companies doing business in those jurisdictions have to take additional compliance measures. Officials said that Turkey, which is currently on the "grey" list, would not be moved to the blacklist despite concerns about its information sharing with some EU member states. The list of non-cooperative jurisdictions for tax purposes, which the EU started in 2017 to put pressure on countries to crack down on tax havens and unfair competition, included 15 countries in 2018 but has since shrunk. The other listed jurisdictions are Fiji, Oman, Samoa, Trinidad and Tobago, Vanuatu and the three U.S. territories of American Samoa, Guam, and the U.S. Virgin Islands.

Nicosia - The Cyprus VAT Association (CYVA) is now accepting membership applications. CYVA is a newly-formed association aiming at bridging the communication gap between businesses and Value Added Tax (VAT) professionals with the government, the Tax Department and lawmakers. CYVA also aims at contributing to the proper adoption of VAT European Directives and Regulations, to help modernise and simplify the Cyprus VAT legislation, and to liaise and consult with the European Commission and other international bodies on Cyprus VAT matters. Eligible for membership with the Association are all local and international businesses and professionals in Cyprus such as trading and construction companies, importers, consultants, such as audit, accounting and law firms, doctors, architects, engineers, administrative services providers, as well as self-employed persons. Annual Membership is set at €150. CYVA members enjoy a wide range of benefits, including: Receiving, reviewing and commenting on all draft legislation, circulars or other documents submitted to CYVA by the Ministry of Finance; Participating in the activities of CYVA in the VAT areas of their interest; Submitting suggestions or highlighting practical VAT problems their businesses face as topics for discussion and dialogue between CYVA and the Department of Taxation (CYVA does not deal with the resolution of VAT assessments nor does it provide VAT advice); Participating in CYVA’s member-exclusive VAT seminars, workshops and conferences; Receiving updates on CYVA’s activities placing them on the pulse of VAT in Cyprus. The inaugural meeting of CYVA took place recently in Nicosia, during which the founding members of the association, Chelco VAT Ltd, Nexia Poyiadjis, Scordis, Papapetrou & Co LLC, Andreas Konnaris LLC, GDK Optimus Audit Services Ltd, C. Efstathiou Audit Ltd and Kinanis LLC elected the Board of Directors and discussed their first steps. Kinanis LLC Partner, Demetra Constantinou, was elected Chairwoman, the Managing Director of Chelco VAT Ltd, Alexis Tsielepis, was elected Vice-Chairman, Chelco VAT Director, Panayiotis Panayi, as Secretary and Nexia Poyiadjis Senior Partner, Susana Poyiadjis, as Treasurer. For more information contact CYVA at [email protected] or at 22 558888. To join CYVA click here for the membership form.

New York - Cyprus ranked in as the 36th most expensive nation to live in, according to a recent survey by New York-based CEOWORLD Magazine. Switzerland has emerged as the most expensive nation to live in, followed by Norway and Iceland according to the CEOWORLD 2020 report, which was based on a range of living costs. Making up the top 10 were Japan, Denmark, the Bahamas, Luxembourg, Israel, Singapore, and South Korea. Cyprus is cheaper to live in than Malta and Italy and is marginally more expensive than Greece which was ranked 38th and Spain in 44th. Turkey was 102nd. Pakistan is the world’s most affordable country, followed by Afghanistan, India, Syria, Uzbekistan, Kyrgyzstan and Tunisia, the same survey showed. Of the top 20 nations, nine were in Europe, five in Asia, one in North America, one in Africa, two in the Caribbean, and two in Oceania. The US was ranked 20th, the UK 27th and Russia 82nd. CEOWORLD magazine used New York as a benchmark which was given an index score of 100.  It based its assessment on a range of living costs, such as accommodation, clothing, taxi fares, utility, internet, the price of groceries, transport, and eating out. Switzerland, Norway and Iceland all scored higher than 100 while Cyprus came in at 57.93, meaning the cost of living in Cyprus is a little over half of that of New York City. In comparison, Pakistan, the cheapest country in the world to live in, scored 21.98. The rankings are based on five major metrics: cost of living, rent, groceries, eating out and purchasing power. CEOWORLD magazine, which is based on 5th Avenue, New York, collected and reviewed data from dozens of studies, consumer price indexes, the Numbeo Cost of Living Index and numerous national and international media reports.

Limassol – In a celebration of humanity and solidarity, staff from Costas Tsielepis & Co Ltd and associated companies joined the offices of Dinos Antoniou & Co Ltd earlier this week in donating blood. The blood donation was held at the Globalserve Business Center in Limassol on Thursday, 17 January 2020. It was participated by the management and staff of the firms as well as guests. Cyprus has almost double the proportion of active blood donors compared to any other EU country. One pint of blood can save up to three lives. A single victim of a serious car accident can require more than 50 pints of blood while the average red blood cell transfusion in cancer patients is 3.4 pints, requiring four donors.

Limassol – Chelco VAT Ltd Director, Panayiotis Panayi, became a partner of the firm on 1 January 2020. Panayiotis is a seasoned professional with over 10 years of experience in VAT advisory and compliance services. An Associate Chartered Accountant (ACA) and a member of the Institute of Certified Public Accountants of Cyprus (ICPAC), he also holds a Bachelor of Arts degree in Accounting and Finance from Manchester University in the UK. In 2017, he was awarded the prestigious Expert in EU VAT degree, finishing first in his class. Panayiotis trained with Big Four firms in the UK and Cyprus as a Chartered Accountant with the Institute of Chartered Accountants in England and Wales (ICAEW), before joining Chelco VAT Ltd as Senior VAT Consultant in 2014. He was promoted to Director in January 2018. Panayiotis teaches VAT at local seminars and workshops and has authored or contributed to various articles and other publications in Cyprus and abroad on matters pertaining to Cyprus and EU indirect taxation. Managing Director and founder of Chelco VAT, Alexis Tsielepis, commented that “Panayiotis’ partnership was the result of his impeccable technical and interpersonal skills, hard work, dedication and outstanding work ethics.” Tsielepis labeled Panayiotis as “the best wingman” he could ever have, adding that Chelco VAT is lucky and privileged to have him on board. “Having such a dedicated professional like Panayiotis on your team is a tall order, literally and metaphorically,” Tsielepis said. The management and staff of Chelco VAT and its associated companies wish him good luck in his upgraded role. He can be reached at [email protected]. Chelco VAT Ltd is the island’s first VAT-dedicated firm and is now considered the foremost authority on indirect tax matters in Cyprus. It is also a leader in the organisation and delivery of VAT seminars, workshops and in-house technical courses via its educational arm, the Chelco VAT International Academy.

Nicosia - Total deposits in Cyprus reached €48.6 billion in November 2019, while outstanding loans €34.2 billion, the Central Bank of Cyprus announced last week. Specifically, according to the official data, total deposits in November 2019 recorded a net drop of €84.1 million, compared to a net decrease of €158.3 million in October 2019. In comparison, total deposits in Cyprus banks, which included Coops, in December 2014 stood at €47.04 billion, while in December 2012, just before the bailout, at €70.1 billion. The annual growth rate in in November 2019 reached 2.2%, compared with 1.8% in October 2019. Outstanding deposits reached €48.6 billion in November 2019. Total loans in November 2019 exhibited a net increase of €34.9 million, compared with a net decrease of €75.0 million in October 2019. The annual growth rate stood at 1.3%, remaining unchanged compared with October 2019. The outstanding amount of total loans reached €34.2 billion in November 2019.

Nicosia – Total Assets Under Management (AUM) for the third quarter of 2019 in Cyprus reached €7.7 bln, recording a 12% increase compared to the second quarter of 2019, according to a quarterly bulletin recently issued by the Cyprus Securities and Exchange Commission (CySEC). The bulletin provides the key findings regarding the Collective Investment Schemes Sector in Cyprus. CySEC added that during the same period, Undertakings of Collective Investments (UCIs), managed by the Management Companies, also registered a Net Asset Value (NAV) of €5.6 billion. Approximately 64.6% of the AUM relate to Assets managed by Alternative Investment Fund Managers (AIFMs), 28.2% by the sub-threshold AIFMs, 3.2% by the UCITS Management Companies, 2.7% by the CIFs and only 1.3% by the Regulated UCIs that are managed by Foreign Fund Managers. At the same time, Management Companies and UCIs aslo recorded a further increase in the third quarter of 2019 in which CySEC had a total of 203 Management Companies and UCIs under its supervision. From these, 130 companies have operations. The total number of companies includes 104 externally managed UCIs, 58 internally managed UCIs and 41 external Fund Managers. The total number of Management Companies includes 28 AIFMs, 67 Sub-threshold AIFMs and 4 UCITS Management Companies. UCITSs invest heavily in Transferable Securities (80%), followed by investments in Bank Deposits (10%). AIFs, AIFLNPs and RAIFs invest mainly in Private Equity (40%), while investment in Real Estate represents 15% of the AUM. There are 117 UCIs in total with operations. The 71% of the total AUM relates to 105 UCIs domiciled in Cyprus (10 UCITS, 32 AIF, 62 AIFLNP and 1 RAIF). From the total 117 UCIs managed by UCIs Management Companies, 79 invest in Cyprus entirely or partially and €1.9 billion (26%) are investments made in Cyprus. The 48% of the investments in Cyprus are in Private Equity, while 15% of the investments in Cyprus are in Real Estate. Finally, categorising the unit-holders, for UCITs these are mainly Retail Investors (99.3%), while for AIF, AIFNLP and RAIF, 51.5% of them are Professional Investors, 45.3% Well-Informed Investors and only 3.2% Retail Investors.

Limassol - A total of 57 kilos were lost during this year’s Chelco VAT Weight Challenge, raising €300 for charity. Winners of the Weight Challenge were Costas Tsielepis & Co Audit Supervisor, Sonia Andreades and Tax Consultant, Ermos Christodoulou, who lost seven kilos each. The ‘Chelco VAT Weight Challenge - Just for the Health of It!’ campaign started in September with a weigh in of all participating staff of Chelco VAT Ltd and allied companies who then set out to lose weight through company-sponsored health seminars, one-on-one nutrition consultations and more. What matters is the difference in weight of staff members at the beginning of the Challenge and at the end. At the final weigh in on 6 December, Chelco VAT contributed €5 for each kilo lost while those who stayed the same weight had to contribute €5. Those who put on weight had to pay €3 for each kilo gained. The two winners jointly decided to allocate the money that was raised to an underprivileged Limassol family in need. The Chelco VAT Weight Challenge was first organised in 2015 and besides raising money for a worthy cause, it also aims at infusing a healthier lifestyle in the office and demonstrating that a healthy mind goes hand in hand with a healthy body. Pictured in the photo are the winners, Sonia Andreades and Ermos Christodoulou.