+357 25 202 900 info@enwenterprise.com Home About us Services Taxation About Cyprus News & Publications Contact us Sitemap Cyprus increases WHT for 12 jurisdictions and introduces supplementary test > News > Cyprus increases WHT for 12 jurisdictions and introduces supplementary test DMCC (Dubai Multi Commodities Centre) Free Zone Marshall Islands Open Economic Substance Reporting Portal in July 2020 Posted on November 17, 2020 in News In order to fight ‘Aggressive Tax Planning’ (ATP), Cyprus announced two new corporate tax measures, emphasizing its willingness and commitment to support the relevant European Commission’s initiatives and to harmonize its tax system with several related EU guidelines and directives. Cyprus will apply withholding tax (WHT) on dividend, interest, and royalty payments on an EU list of non-cooperative jurisdictions on tax matters. Under this new proposal by the Council of Ministers on 22 October 2020 that will also have to be also approved by the House of Representatives, dividend, interest, and royalty payments from the following jurisdictions will increase to 17% for dividends, 30% for interest, and 10% for royalties. Jurisdictions: American Samoa Anguilla Barbados Fiji Guam Palau Panama Samoa Trinidad and Tobago US Virgin Islands Vanuatu Seychelles Cyprus will also apply a second measure concerning the corporate tax residency test. Currently, a ‘management and control’ test is used to define the Cyprus tax residency for companies. The proposed new measure is set to introduce an additional ‘corporate tax residency test’ based on incorporation, in addition to the existing ‘management and control’ test. For more information about withholding tax (WHT) please contact us. Related Articles The Cyprus UBO Registry LATEST NEWS Announcement 2/11/2021 Reporting economic substance in British Virgin Islands 2021 Annual Levy extension The Cyprus UBO Registry DMCC (Dubai Multi Commodities Centre) Free Zone ENW ENTERPRISE NETWORK We provide services for individuals, companies, group of companies and High Net Worth Individuals (HNWI) including the incorporation of companies, provision of nominee services, advice on optimal tax structures, effective provision of company administration and accounting, trust, fiduciary and other related services. CONTACT INFO 40 Kimonos Street 3095, Limassol - Cyprus Tel: +357 25 202 900 Fax: +357 25 202 901 Email: info@enwenterprise.com Contact Form / Location © Copyright ENW Enterprise Network Ltd 2021. All rights reserved.