Following our most recent publication dated February 17, 2023, the Economic and Financial Affairs Council of the European Union (EU) has announced new updated list of non-cooperative jurisdictions.
Effective from October 17, 2023, three additional jurisdictions, namely Antigua and Barbuda, Belize, and Seychelles, have been included in this list. This brings the total number of non-cooperative jurisdictions on the EU List to 16, which also comprises American Samoa, Anguilla, Bahamas, Fiji, Guam, Palau, Panama, Russia, Samoa, Trinidad and Tobago, Turks and Caicos Islands, US Virgin Islands, and Vanuatu.
Simultaneously, three jurisdictions have been removed from the list, namely the British Virgin Islands, Costa Rica, and Marshall Islands.
The next update of the bi-annual review of the EU List is expected in February 2024.
In an effort to be in line with the proposals set by the EU regarding the application of defensive measures, Cyprus has opted to introduce the imposition of withholding taxes on outbound payments of dividends, interest and royalties made to companies which are tax resident or registered in jurisdictions included in the EU List.
As of today, the Cyprus Tax Department has not issued any official guidance to taxpayers with regards to the practical application of withholding taxes in cases where an outbound payment of dividends, interest, or royalties is made to a company resident or registered in a non-cooperative jurisdiction.
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