Tax Update – 25 October 2023 – New EU list of non-cooperative jurisdictions for tax purposes
26 October 2023
As per the recent decision of the EU Council dated 17 October 2023, British Virgin Islands has been removed from the EU list of non-cooperative jurisdictions for tax purposes while Belize, Seychelles and Antigua Barbuda have been added. The list is now composed of the following countries:
- American Samoa
- Antigua and Barbuda
- Anguilla
- Bahamas
- Belize
- Fiji
- Guam
- Palau
- Panama
- Russia
- Samoa
- Seychelles
- Trinidad and Tobago
- Turks and Caicos Islands
- US Virgin Islands
- Vanuatu
The list is expected to be updated again in February 2024.
As from 31 December 2022 Cyprus imposes Withholding Taxes (WHT) on payments of dividends, interest and royalties to companies on the list unless they are tax resident, or their shares are listed in another jurisdiction that is not included on the list.
Additionally, entities incorporated and or tax resident in the above jurisdictions fall under Hallmark C(1)(b)(ii) the EU Mandatory Disclosure Rules (DAC6) irrespective of whether the main benefit test is met or not. This may impact the reporting obligations of arrangements with entities from Belize, Seychelles and Antigua Barbuda that were previously not-reportable.
Our Tax teams remain at your disposal for further discussion on how the above provisions may impact your business.
Angelos Petrou,
Director, Tax Department