Further to our previous alert with regards to the Tax and VAT measures announced by the Cyprus Government following the Coronavirus outbreak, we hereby provide a clarification with regards to GHS contributions.
Following our communication with the Health Insurance Organisation and the Ministry of Finance, we understand that the intention of the Cyprus Government is for the reduced contributions to the GHS to apply for the months of April and May 2020 and this will be applicable for all contributors.
Effectively, the increased contribution rates to the GHS will apply as planned for the whole of March 2020.
The below table specifies the period of application of the relevant contribution rates to the GHS per contributor’s category:
|Contributor’s Category||Up to 29 February 2020 and during the period 1 April – 31 May 2020|
|For March 2020 and as from 1 June 2020 onwards|
|A)||Employees/ Pensioners/ Income Earners/ persons holding an office||1,70||2,65|
|D)||The Republic or natural/legal person responsible for the remuneration of Officers||1,85||2,90|
We expect that the GHS legislation will be amended to reflect the above understanding.
We are in continuous communication with the relevant Authorities and we aim to revert with further guidance and clarifications.
About McMillan Woods Cyprus
Central offices are located in Nicosia Strovolos, Piraeus Street 36.