ARTICLE
4 May 2012

Removal Of Cyprus From The Portuguese Tax "Blacklist"

EN
Elias Neocleous & Co LLC

Contributor

Elias Neocleous & Co LLC is the largest law firm in Cyprus and a leading firm in the South-East Mediterranean region, with a network of offices across Cyprus (Limassol, Nicosia, Paphos), Belgium (Brussels), Czech Republic (Prague), Romania (Budapest) and Ukraine (Kiev). A dynamic team of lawyers and legal experts deliver strategic legal solutions to clients operating in key industries across Europe, Asia, the Middle East, India, USA, South America, and China. The firm is renowned for its expertise and jurisdictional knowledge across a broad spectrum of practice areas, spanning all major transactional and market disciplines, while also managing the largest and most challenging cross-border assignments. It is a premier practice of choice for leading Cypriot banks and financial institutions, preeminent foreign commercial and development banks, multinational corporations, global technology firms, international law firms, private equity funds, credit agencies, and asset managers.
Cyprus has been removed from the so-called "blacklist" published by the Portuguese tax authorities.
Cyprus Wealth Management

Cyprus has been removed from the so-called "blacklist" published by the Portuguese tax authorities. Decree 150/2004 of the Portuguese Ministry of Finance set out a list of more than 80 jurisdictions considered to have unduly favourable tax regimes. Residents of countries on the list are denied certain benefits of the Portuguese tax system, and subject to higher rates of certain taxes. Companies resident in the countries on the list are subject to the Portuguese CFC rules, with significant Portuguese shareholders being liable to Portuguese tax on undistributed profits attributable to them.

As Cyprus and Portugal are fully compliant with the relevant EU Directives, particularly Directive 77/799/EEC concerning mutual assistance by the competent authorities of the Member States of the EU in the field of direct taxation and taxation of insurance premiums and Directive 2008/55/EC on mutual assistance by the EU Member States for the recovery of claims relating to certain levies, duties, taxes and other measures, Cyprus has now been removed from the list of "suspect" jurisdictions and Cyprus-resident companies and individuals will no longer be subject to unfavourable treatment.

Decree 292/2011 of the Portuguese Ministry of Finance, published on 8 November 2011, sets out the revised "blacklist" of 81 jurisdictions, which include the Channel Islands, Gibraltar, Hong Kong, the Isle of Man, Qatar, Seychelles and the British and US Virgin Islands.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More