Cyprus has been formally removed from India’s tax blacklist and will now not be considered as ‘non-cooperative’ jurisdiction for income tax purposes.
Cyprus, a popular tax haven, was the only country to have been blacklisted by India as a non-cooperative jurisdiction due to lack of effective exchange of information.
The Central Board of Direct Taxes (CBDT) has blacklisted the island nation Cyprus in November 1, 2013.
The Indian government move to remove Cyprus from tax blacklist comes on the heels of the two countries firming up a new tax treaty, which will come into force in India from April 1, 2017.
About Cyprus as Tax Haven:
Cyprus is an island in the Mediterranean Sea. Cyprus is a popular tourist destination which receives millions of visitors each year who flock to the white sand beaches to soak in the Mediterranean sun. Cyprus is one of several tax havens located in the European continent.
An offshore jurisdiction Cyprus specializes in services such as the incorporation of offshore companies, offshore insurance, and the formation of Cyprus Trusts among other offshore services
Cyprus is a well developed country which is well sought after as an offshore tax haven. A member of the European Union Cyprus has strict laws in place to protect the offshore financial sector of the jurisdiction.
Cyprus can be considered a low tax haven since the country has a low tax regime in place for offshore companies and resident companies. The tax haven of Cyprus is popular among European investors and businessmen.
In October 2015, the island of Cyprus officially lost its status as a tax haven when the Organization for Economic Cooperation and Development (OECD) declared the country, along with Luxembourg and Seychelles, had been found to be largely compliant with standards set forth by the Global Forum on Transparency and Exchange of Information for Tax Purposes.
The rating is the same as that given to the United States, Germany and the United Kingdom.