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Cyprus introduces defensive tax measures targeting low-tax and 'blacklisted' jurisdictions

|Tax Alerts, Information Reporting, Legis ...|Cyprus
Cyprus

  • Effective 1 January 2026, dividend payments to associated companies in low-tax jurisdictions (LTJ) will incur a 17% withholding tax (WHT).
  • Interest and royalty payments to associated companies in LTJ will not be deductible for corporate tax purposes starting from the same effective date.
  • The legislation also amends existing provisions for withholding tax on payments to companies in EU "blacklisted" …

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