Commission Names and Shames Cyprus for Aggressive Tax Planning

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Cyprus has been named among the seven EU Member states that engage in aggressive tax planning with the combination of specific tax rules in place, and the absence of anti-abuse rules, arguably allowing tax avoidance structures.

Also, Cyprus is suggested to be exposed to corporate income tax revenue decrease with high inward and outward foreign direct investment stocks.

Indeed, the absence of withholding taxes on dividend and the existence of corporate tax residency rules, will facilitate aggressive tax planning in the island.