The Cyprus Council of Ministers has approved the Draft Budgetary Plan 2021, setting out a series of unilateral measures against aggressive tax planning with effect from 1 January 2021. They include a withholding tax on dividend, interest, and royalty payments to countries on the EU list of non-cooperative jurisdictions, and a new corporate tax residency test based on incorporation, in addition to the existing management and control test. Cyprus is also developing a system whereby information on individuals who have obtained residence through its citizenship- or residence-by-investment programmes will be spontaneously exchanged with all original jurisdictions of tax residence.
News Source：【EY 2020/11/03】