Category: Uncategorized

End of the suspension period for the increased contribution to the General Healthcare System (GHS)

Fairfax wishes to kindly remind all employers as from 1 July 2020, the suspension of the increase in the contributions to the National Health Insurance System (NHIS), ends.

The collection of the contributions for the first stage started on 1 March 2019. For the complete implementation of the NHIS, contributions started on 1 March 2020, however, due to government measures for supporting the economy during COVID-19, the increase of contribution was deferred by 3 months (up to 1 July 2020) and therefore ceases to apply.

The House of Representatives have clarified in the event where businesses/employers have already proceeded in the implementation of the reduced rates for March 2020, the 3-month period applies from 1 March 2020 to 31st May 2020 for those businesses/employers only. In the event where the reduced rates have not been applied for March 2020, the 3-month period applies from 1 April 2020 to 30 June 2020.

Specifically, as of 1^st July 2020, employers will contribute 2.90% on the employee’s earnings, and the employees will contribute 2.65% The employer is responsible for paying both their own and their employees’ contributions through Social Insurance or Income Tax Office Services, depending on the nature of income, by means of deductions from their salary

How can we help?

Fairfax and its dedicated personnel are at your service to assist you in adjusting to the new changes introduced by the authorities.

For more information call +35725558025 or email accounts@fairfaxyeaman.com

Social Insurance maximum insurable income increase, National Health Insurance System Contributions and change of Income Tax Legislation concerning the tax allowances.
Fairfax wishes to inform all employers that in 2020 an increase in Maximum Insurable Income in relation to Social Insurance Fund (SIF) contributions will come into effect, the National Health Insurance System (NHIS) will enter the second phase of full implementation with the increase in contribution rates and an amendment in tax legislation has come into force from 19/12/2019 concerning the allowances for income tax purposes.

SIF Insurable Income increase
According to the provisions of the Social Insurance Law of 2010 the rate of social insurance contribution is applied to a maximum level of earnings. The maximum level of earnings up to 2019 was €54,648, while from 2020 the maximum level of insurable income will be increased to €54,864 per annum.

There will be no further change at the contribution rates currently in effect.

 

 

NHIS Full implementation
According to National Health Insurance System Law of 2010 (as amended in 2017), employer and employee contributions for the implementation of the system that commenced in 2019 will come in full completion in 2020 entering the second phase.
Specifically, as of 01/03/2020, employers will contribute 2.90% on the employee’s earnings, and the employees will contribute 2.65% increased from 1.85% and 1.70% retrospectively that is currently in effect and will continue to be until the end of February 2020. The employer is responsible for paying both their own and their employees’ contributions through Social Insurance or Income Tax Office Services, depending on the nature of income, by means of deductions from their salary

 

It should be noted that NHIS contributions are paid on all employee earnings (as earnings are defined in the Social Insurance Law) up to €180,000. There is no indication at the moment that the maximum income for NHIS purposes will be increased.

Tax Allowances
Income Tax Department has revised article 14 of the Income Tax Law 118(I)2002 introducing a new tax relief rate for allowances including life insurance, medical, pension, provident fund and social insurance contributions. As of 19/12/2019 the tax relief benefit for the tax payers was increased from 1/6 to 1/5.

Due to the late publication of the relevant article amendment, the Income Tax Department is expected to proceed with a number of tax refunds to the tax payers that are affected once the submission of the personal income tax return for Tax Year 2019 is completed.

How can we help?

Fairfax and its dedicated personnel are at your service to assist you in adjusting to the new changes introduced by the authorities.

For more information call +35725558025 or email accounts@fairfaxyeaman.com

 

 

In the December 2019 addition of IMH Business’ Gold Magazine, there featured an interview by Angeliki Jacovidou of Fairfax’s Director Nicoletta Demetriou FCCA. The two page spread was in the iconic Gold and black brand colours of Fairfax and the image was a chain to represent the solid connection Fairfax has with their clients.  The team at Fairfax work very closely with their portfolio of clients and link all necessary parts of the business structure so they can work as one fluid chain, the gold link representing Fairfax integrating within the business of their clients.  The article gives insights into the services Fairfax provide and the benefits of outsourcing.  Nicoletta quotes “what differentiates the company from its competitors is thestrong emphasis it places on providing a highly personalized service and the expertise that has enabled it to offersuperior quality service and become the go-to place for outsourcing.”

The GRS Group had an advertisement and accompanying article in the December 2019 Gold Magazine’s feature of Professional Services in Cyprus.  Since the group consisting of GRS Recruitment and Fairfax offer a wide variety of professional services to companies in Cyprus this was an ideal supplement to showcase them.  The Professional Services we can provide as a Group are; Permanent Recruitment, Temporary Contract Recruitment, , Project Recruitment, Outplacement, Salary Benchmarking, HR Services, Outsourced Payroll, Accounting Services and International Contractor Payroll.

The Article includes news about the Group and the services they offer and highlights the promotions and management development within the Group, including Fairfax’s Director Nicoletta Demetriou and states that these key changes have contributed to the growth of both Organizations as well as  resulted to an amazing increase in the Group turnover .  The image within the advertisement is a rope tied in a knot symbolising the strong connection between the companies within the group and in turn the tight union with their clients.  One side of the rope representing GRS Recruitment in the classic red colour associated with the brand, and the other side gold, showcasing the Fairfax signature colour.

Last year, new foreign company legislation was passed known as ‘deoffshorisation.’ This legislation, which came into effect from 1^st January 2015, meant that countless offshore company structures established in Cyprus needed to make adjustments to their offshore entities in order to be compliant with the new law.

The legislation affirms that any individual or company with a 25% or more ownership in a foreign company or organisation must be categorised as a ‘controlling entity,’ meaning that changes to their legal form must be made – primarily in the form of greater substance within an offshore organisation.

Since the legislation was implemented, countless offshore structures have adjusted their operations and built up substance in their structures by establishing operational offices in Cyprus and by directly appointing physical persons to their structure.

Substance in Cyprus is essential in order to support Cyprus tax residency status, support transfer pricing challenges, defend beneficial ownership challenges and exchange information transparently and confidently. The increase in substance has also led to an increase in employment, the attraction of more talent and a boost to the economy.

Cyprus’ strategic location combined with its developed legal system, full EU membership, competitive corporate tax rate of 12.5%, business-friendly environment and low operational costs make it the ideal location for establishing substance in.

However businesses cannot increase substance without the support of a reliable and knowledgeable agency to assist them throughout the procedure.

How can Fairfax assist?

Fairfax works hard to support its clients with a wide range of services designed to assist with increasing substance in Cyprus. Their team of specialists can assist you with the following services:

Providing assistance to companies or special purpose vehicles to legally obtain transparency, ‘substance’ and comply with the Cypriot Legal System in addition to the supply of qualified personnel and exec and non-executive directors that are screened and supplied via Fairfax’s group company, GRS Global Recruitment Solutions (Cyprus).
Providing tailor-made administration, bookkeeping, payroll, immigration and secretarial services

Fairfax’s founders and directors, Nicoletta Demetriou, Donna Stephenson and Steve Slocombe possess industry specific, in-depth knowledge along with more than 15 years’ experience in the industry, thus enabling them to provide the highest-quality, bespoke services delivered in a prompt and responsive manner.

Heading the team is Fairfax’s Director of Accounts and Payroll, Nicoletta Demetriou, who is responsible for overseeing complex and technical services to local and international companies with a presence in Cyprus. Nicoletta is an FCCA qualified accountant with more than a decades’ worth of experience in running payroll and accounting services for local and international businesses with a presence in Cyprus. Together with the team, she works persistently and efficiently to ensure the needs of her clients are met accurately and professionally.

Further to supporting its clients and assisting them with increasing substance in Cyprus, this highly established firm also offers a wealth of additional services including outsourced payroll services, immigration, registration of personnel with the local authorities and Cyprus employment contract provision. Such a broad spectrum of services ensures that all business’ needs are met in a cost-effective, reliable and specialised way, thus enabling Fairfax to provide greater value to its international clientele.

Fairfax is simply unrivalled in terms of quality of service, knowledge and delivery. By investing carefully in their team and technology, they are able to offer the highest quality services and a fast turnaround whilst never compromising on quality.

For further information please contact a member of the team on +357 25 55 80 25 or email accounts@fairfaxyeaman.com