Tax Update: New additions Oct 2023 - EU list of non-cooperative jurisdictions for tax purposes

The European Council on 17 October 2023 decided to remove the British Virgin Islands, Costa Rica, Marshall Islands from the EU list of non-cooperative jurisdictions for tax purposes.

It was resolved to include Belize, Seychelles, and Antigua & Barbuda to this list.

The whole list includes the following jurisdictions:

  • 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



  • DAC6

The inclusion of the additional 3 companies in the EU List of non-cooperative jurisdictions will affect Cyprus companies in relation to their DAC6 reporting.

Cross-border arrangements with an associated enterprise with tax residence in the above-mentioned list will be considered reportable arrangements under hallmark C1bii – “Arrangements that involve deductible cross-border transactions between associated enterprises in cases where the recipient is resident for tax purposes in a jurisdiction of third-country jurisdictions which is assessed as non-cooperative by the EU or OECD.”

The Main Benefit Test (MBT) is irrelevant to this hallmark therefore all cross-border arrangements that relate to tax deductible transactions (such payment of interest expense, payment for services received etc) will be considered as reportable and the report must be submitted within the strict deadlines of the law otherwise heave penalties apply.


  • Withholding Taxes on outbound Dividend, Interest and Royalty payments

Cyprus companies paying dividend, interest and royalties to companies who are either:

  • tax resident in a jurisdiction mentioned in the above list or
  • are registered in these jurisdictions and are not tax resident in a jurisdiction which is not in the above list.

will need to deduct appropriate withholding tax at source at the appropriate rates as indicated in the below table:


Payment Type Tax Conditions
Dividends 17%

Provided that the recipient company holds directly, alone or together with associated companies (which are also resident or registered in a non-cooperative jurisdiction)

  • 50% or more of the voting rights, share capital or
  • ­right to receive profits of the Cyprus tax resident company that pays the dividend.

The above does not apply on dividend paid by a Cyprus tax resident company listed in a recognised stock exchange)

Interest 30% Does not apply to interest paid in relation to securities listed in a recognised stock exchange
Royalties 10%  


The above rates will not apply for cases where a double tax treaty provides for reduced withholding tax rates.

The only jurisdiction that Cyprus has double tax treaty from the above list is Russia. Therefore, dividends, interest and royalties paid to Russian companies will be subject to the withholding tax rates of 15%,15%,0% respectively subject to the conditions stated in the double tax treaty between Cyprus and Russia


Tax Department



We are a Law Firm with offices in Cyprus consisting of more than 50 lawyers, accountants and other professionals, consulting international and local clients.

The Firm and its predecessors offer to their clients legal and advisory services since 1983. The Firm gradually evolved over the years, from one traditional law Firm into an innovative pioneering Law Firm that combines exceptional expertise in corporate law, trusts, taxation, VAT, accounting, litigation, financial services, labour law, migration and technology.

Since its establishment, the focus of the Firm has been largely oriented towards corporate businesses and always compatible with the latest global developments and innovations.

Drawing from the team of our experienced professionals, we provide to the clients' businesses our full legal, tax and accounting support on a daily basis as well as tailored solutions to today's global economic and legal challenges. Our Firm is constantly harmonizing and adapting to technological developments by providing a corresponding support to its customers.

It is our policy to anticipate and prevent any issues that may arise and impact our clients' businesses and offer effective advice, timely and proactive solutions.


We participate in the operations of our customers and have as our vision and pride to become part of their story having as flag, the motto "...Being part of their story is our pride..."


Kinanis LLC
Limited Liability Law Firm
Egypt 12, 1097 – Nicosia
Tel: 22 558 888 – Fax: 22 662 500
E-mail: KinanisLLC@kinanis.com – Website: www.kinanis.com