EU has updated its list of blacklisted jurisdictions on the 14th of February 2023 with the most notable additions being Russia, BVI and Marshall Islands. You can see the full list on EU Website here.
Countries on the list are hit with administrative penalties from EU capitals and are restricted from some EU funding. The list is part of the EU’s external taxation strategy, and it intends to assist with ongoing efforts to promote international tax good governance.
The list is the result of an in-depth screening and dialogue process with non-EU Member States to assess them against EU’s screening criteria established in line with international tax standards. The screening criteria are founded upon tax transparency, fair taxation and implementation of OECD anti-BEPS minimum standards including economic substance requirements for zero-tax jurisdictions.
From a Cyprus perspective the impact needs to also be seen alongside the new legislation effective from 1 January 2023, where dividends and interest paid to countries in blacklisted jurisdictions will bear withholding tax. More information on this you can find in our relevant article here.
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