EU’s Latest Review of Non-Cooperative Jurisdictions
The European Union (EU) has confirmed that its tax blacklist remains unchanged following its most recent revision on 18 February 2025. The list continues to include 11 jurisdictions, with Russia remaining on the list since 14 February 2023.
The EU Council reviews and updates the list of non-cooperative jurisdictions for tax purposes biannually, with the next revision scheduled for October 2025. This initiative aims to promote tax good governance and ensure compliance with international standards that prevent tax base erosion and profit shifting (BEPS).
For the official EU Council decision, click here.
Tax Implications for Cyprus Corporate Taxpayers
For Cyprus tax residents, transactions involving jurisdictions on the EU tax blacklist are subject to specific withholding tax (WHT) rates:
- 17% withholding tax on dividend payments
- 17% withholding tax on interest payments
- 10% withholding tax on royalty payments
Additionally, interest and royalty payments made to blacklisted jurisdictions may also trigger DAC 6 reporting obligations under the EU’s mandatory disclosure rules for cross-border tax arrangements. Businesses operating in Cyprus must assess their financial transactions with non-cooperative jurisdictions to ensure full compliance with the latest EU tax requirements.
Key Considerations for Companies Engaging with Blacklisted Jurisdictions
The EU tax blacklist identifies jurisdictions that have failed to meet international tax governance standards or have not implemented necessary reforms. Countries on this list do not adhere to the EU’s tax good governance criteria, which include:
✔ Tax Transparency: Ensuring clear and open tax reporting practices.
✔ Fair Taxation: Preventing tax regimes that facilitate harmful tax practices.
✔ Compliance with International Standards: Aligning tax regulations with OECD and EU anti-BEPS measures.
The EU’s strict stance on non-cooperative jurisdictions reinforces its commitment to fair taxation and the prevention of aggressive tax planning that could distort international financial markets.
How Can Eurofast Support Your Business?
Navigating the complexities of EU tax regulations requires expertise, especially when dealing with jurisdictions affected by the EU blacklist.
At Eurofast, our Tax Compliance and Advisory Team offers:
🔹 Comprehensive risk assessments on cross-border transactions involving blacklisted jurisdictions.
🔹 Guidance on withholding tax compliance for payments subject to EU restrictions.
🔹 Support with DAC 6 reporting obligations and other regulatory requirements.
🔹 Strategic tax planning solutions to help businesses mitigate exposure to non-compliant jurisdictions.
Stay compliant and protect your business. For expert guidance on tax implications and regulatory updates, contact us at [email protected]