New Countries added to the European Council black list for tax purposes

The European Council announced the updated list of non-cooperative jurisdictions for tax purposes. The new list includes the British Virgin Islands (BVI), Costa Rica, Marshal Islands and Russia.

With this addition, the new list consists of 16 jurisdictions as listed below:

• American Samoa
• Anguilla
• Bahamas
• British Virgin Islands (BVI)
• Costa Rica
• Fiji
• Guam
• Marshall Islands
• Palau
• Panama
• Russia
• Samoa
• Trinidad and Tobago
• Turks and Caicos Islands
• US Virgin Islands
• Vanuatu

It is highlighted that any dividend, interest and royalty payments made to corporate taxpayers located in EU non-cooperative jurisdictions from a Cyprus tax resident payer are subject to withholding tax at the rates of 17%, 30% and 10% respectively.

The European Union list of non-cooperative tax jurisdictions (black list) includes countries that either have 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.  *Read the detailed announcement at the following link of the European Council https://www.consilium.europa.eu/en/press/press-releases/2023/02/14/taxation-british-virgin-islands-costa-rica-marshall-islands-and-russia-added-to-eu-list-of-non-cooperative-jurisdictions-for-tax-purposes/

Globalserve Consultants Ltd, an authorized corporate, accounting and tax provider in Cyprus can assist and advise you on the above, should you require any additional information please contact us at Αυτή η διεύθυνση ηλεκτρονικού ταχυδρομείου προστατεύεται από τους αυτοματισμούς αποστολέων ανεπιθύμητων μηνυμάτων. Χρειάζεται να ενεργοποιήσετε τη JavaScript για να μπορέσετε να τη δείτε. or call at 00357 25 817181.