The EU Council revised its list of
non-cooperative jurisdictions for tax purposes on 8 October 2024, removing Antigua
and Barbuda.
The list includes countries which have either not
engaged in a constructive dialogue with the EU on tax governance or have failed
to deliver on their commitments to implement the necessary reforms. Those
reforms should aim to comply with a set of objective tax good governance
criteria, which include tax transparency, fair taxation and implementation of
international standards designed to prevent tax base erosion and profit
shifting.
The list now consists of 11 jurisdictions, namely
American Samoa, Anguilla, Fiji, Guam, Palau, Panama, Russia, Samoa, Trinidad
and Tobago, US Virgin Islands and Vanuatu.
The official EU Council Press Release, which
outlines the reasoning of the decision can be found here.
Cyprus resident taxpayers having transactions or
operations with parties located in a jurisdiction included in the EU list of
non-cooperative jurisdictions for tax purposes need to consider the following
implications:
As per EU Mandatory Disclosure Rules (DAC6)
arrangements that involve deductible cross-border payments made between
associated enterprises where the recipient is resident in a jurisdiction
included in the EU list of non-cooperative jurisdictions for tax purposes, are
reportable, irrespective of whether the main benefit test is met or not.
In addition, dividends, interest and royalty
payments made by companies that are tax resident in Cyprus to companies located
in a jurisdiction included in the EU list of non-cooperative jurisdictions for
tax purposes, may be subject to a withholding tax in Cyprus (subject to
conditions). You can refer to our related newsfeed on this for more details.
Furthermore, the list is relevant for Public Country by Country Reporting purposes since, under certain conditions, the requirement to publish disaggregated information for a jurisdiction included in it may be triggered.
