Cyprus: Withholding tax, payments made to companies in EU “blacklist” jurisdictions
Measures address the tax treatment of payments made into jurisdictions included on the EU list of non-cooperative jurisdictions
Withholding tax, payments made to companies in EU “blacklist” jurisdictions
Measures published in the official gazette on 21 December 2021 address the tax treatment of payments made into jurisdictions included on the EU list of non-cooperative jurisdictions for tax purposes (commonly referred to as EU “blacklist” jurisdictions).
Cyprus will apply the following rates of withholding tax on certain outbound payments of dividends, interest, and royalties if the recipient is a company in an EU blacklist jurisdiction:
- Dividends at a withholding tax rate of 17%
- Interest at a withholding tax rate of 30%
- Royalties at a withholding tax rate of 10%
The amendments are effective 31 December 2022.
Read a December 2021 report prepared by the KPMG member firm in Cyprus
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