Tax havens

The European Union has agreed to remove Anguilla, Dominica, and Seychelles from its blacklist of tax havens. All three had previously been placed on the list because they did not fulfill the EU's tax transparency standards of being assessed as at least "largely compliant" by the OECD Global Forum in terms of information exchange on request. The delisting was preceded by the forum’s decision to grant these jurisdictions a supplementary review on this matter. Nine jurisdictions still remain on the EU list of non-cooperative jurisdictions (Annex I): • American Samoa, • Fiji, • Guam, • Palau, • Panama, • Samoa, • Trinidad and Tobago, • US Virgin Islands • Vanuatu. Anguilla, Dominica, and Seychelles are now included in the state of play document (Annex II) called also “grey list”, which covers jurisdictions that do not yet comply with all international tax standards but have committed to adopting tax good governance principles pending the allowed additional review. Costa Rica, Hong Kong, Malaysia, North Macedonia, Qatar and Uruguay have also been added to this document, while Australia, Eswatini and Maldives have implemented all the necessary tax reforms and have therefore been removed from it. Turkey continues to be mentioned in Annex II. In its conclusions of February 2021, the Council called on Turkey to commit to automatic exchange of information with all member states. Even though progress has since been made, further steps need to be taken. The Council revises its list of non-cooperative jurisdictions and an accompanying state of play document twice a year. This practice was formed in 2017 to promote global good governance in taxes and to alert member countries on which non-EU jurisdictions engage in abusive tax practices. They can then take defensive steps to protect their tax income and fight against tax fraud, evasion, and abuse. The criteria for listing are in line with international tax standards and focus on tax transparency, fair taxation and prevention of tax base erosion and profit shifting. The Council engages with the countries that do not meet these requirements, monitors their progress, evaluates, and updates this list on a regular basis.

EU set to remove Seychelles, Anguilla and Dominica from the Tax Haven Blacklist

The European Union has agreed to remove Anguilla, Dominica, and Seychelles from its blacklist of tax havens. All three had previously been placed on the list because they did not fulfill the EU’s tax transparency standards of being assessed as at least “largely compliant” by the OECD Global Forum in terms of information exchange on …

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DAC6 IBCCS TAX Cyprus

DAC6 – Automatic Exchange of Information

The Council of the European Union has adopted the Directive 2018/822 for amending the Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation. Genesis UE Member States find it increasingly difficult to protect their national tax bases from erosion as tax-planning structures have evolved to be particularly sophisticated. Such structures …

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Individual Tax Return deadline 2020 2021 IBCCS TAX Cyprus

Personal Income Tax Return

Individual Income Tax Return Submission Obligation Individuals with gross income that falls under the criteria of Article 5 of the Income Tax Law (i.e., dividends, interest, and certain other income) must file a personal income tax return (Form T.D.1). According to the decree issued on July 09, 2021, in the Republic’s official gazette, the Council …

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Global CIT 15% OECD IBCCS TAX Cyprus

Global CIT rate of min. 15%

130 countries and jurisdictions, representing more than 90% of global GDP, have agreed on 1st of July 2021 on a new two-pillar proposal to overhaul international tax regulations and ensure that multinational corporations pay their fair share of tax wherever they operate. At a turning point for the global economy, the Organization for Economic Co-operation …

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IP BOX Regime Cyprus IBCCS TAX

Cyprus as an ideal location for Intellectual Property

Cyprus currently has one of the most favorable IP systems in the world, imposing only 2.5% – 0.0% of the effective tax rate on profits derived from IP structures (depending on the spending structure). And this is only one of the benefits. What precisely is an IP BOX? The Intellectual Property (IP) Box regime, also …

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NID Cyprus tax deduction IBCCS TAX Limassol

NID – instrument for tax-efficient return

The Notional Interest Deduction (NID) is a significant instrument available to both domestic and foreign companies that allows them to deleverage and realize a tax-efficient return on new (qualified) equity. This return is obtained by deducting a “notional” interest charge from their taxable income.As a result of the NID, Cypriot enterprises may now attain effective …

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Protect your business from another COVID

Protect your assets and save your taxes with us The outbreak of pandemic Covid-19 all over the world has disturbed the political, social, economic and financial structures. Many businesses were unable to continue their operations because of the significant losses. We at IBCCS constantly work to help our clients protecting their assets and provide solutions to …

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Why companies & individuals go offshore?

There are various benefits for companies and individuals going offshore, but the most popular one is the possibility to reduce or avoid taxes. Tax avoidance was, is, and will be the most important reason for going offshore. We can mention some other reasons like e.g. protection of assets, holding of investments, using the offshore company …

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Offshore financial centre – defined

There are many debates on how the ‘offshore financial centre’ should be defined. Should people say ‘offshore centre’, ‘tax haven’, ‘low tax jurisdiction’, ‘offshore zone’ or the other combination? And what do they really mean? They all relate to similar area, but there are slight differences between some of them (which I will explain in …

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